iQ Power Licensing AG

Annual Results 2017 published - Seite 2

Financial Results
The results of the second half year of 2017 were in line with expectations, with no major unusual expenses.

The net revenue for the second half was CHF 445´000, an increase of 85% versus the first half of 2017. The revenue increase came from the strategic licensee, Discover Mixtech Manufacturing Corporation in South Korea, which was able to increase capacity and sales. Total year sales were CHF 686´000.

The net revenues are a combination of license margin from plastic parts for the mixing devices and license income.

The loss from on-going operations for the second half of 2017 was CHF 451´000, which is a great improvement to the first half of 2017 (CHF -1´110´000). The improvement came from improved revenues and lack of extraordinary expenses, as occurred in the first half of 2017. For the total year, the loss was greatly reduced, from CHF 4.244 million in 2016 to CHF 1.567 million. As noted in earlier reports, the write-down of the participation in the South Korean factory weighed on earnings greatly in 2016.

In the first half of 2017 losses after tax were higher than would normally be anticipated due to non-operational losses. These negative profit events included a non-cash write down attributable to currency losses as the Swiss Franc weakened significantly against the Euro. iQ Power Licensing AG has almost EUR 3 million in financial assets, which must be adjusted for exchange rate differences to the balance sheet currency, the Swiss Franc.

In the first half of 2017, there was also unanticipated non-cash expense of CHF 192´000 from a write-off of the investment in the small industrial battery company in Germany.

The total assets of the company were largely unchanged from the first half of 2017 at CHF 4.5 million. The equity as a percent of total assets was 17%. The cash balance of the company was adequate at CHF 253´000.

Outlook for 2018
The anticipated entry of a new majority shareholder in mid-2018 will create a totally new operational environment for iQ Power Licensing. The funding of at least EUR 14 million will allow rapid expansion and productive implementation of the new business opportunities developed in 2017.

The introduction of new financial resources will allow for quick realization of the new businesses and will lead to a profit for the iQ Power Licensing AG in the second half of 2018. A new era of financial stability and explosive earnings growth is foreseen by the management.