Subgen AI (MAGNA) Q2 2025 earnings summary

Executive summary

• Focus shifted to saliva-based diagnostics, especially for oral health, leveraging expertise from prior projects and aiming for professional use to accelerate time-to-market.

• Entered a Letter of Intent and later a conditional agreement for a reverse takeover of SubGen AI Limited, with SubGen shareholders to hold 98% post-transaction; existing subsidiaries to be spun off.

• Rights issue in May 2025 raised MSEK 15, but funds were insufficient for the full operational strategy.

Financial highlights

• Net sales and other income for H1 2025 were MSEK 0.9, down from MSEK 4.6 year-over-year.

• Operating loss increased to MSEK -27.0 from MSEK -15.6 year-over-year; loss before tax was MSEK -28.1 versus MSEK -13.6.

• Loss per share was SEK -0.45, compared to SEK -0.42 in H1 2024.

• Cash and cash equivalents at period end were MSEK 0.1, down from MSEK 0.3 at December 2024.

• Equity ratio deteriorated to -233% from -119% at December 2024.

Outlook and guidance

• Completion of the SubGen AI Limited reverse takeover is subject to EGM approval, Nasdaq clearance, and debt conversion by Atlas Special Opportunities.

• After the transaction, SubGen shareholders will control 98% of shares, with Magnasense’s current business to be spun off.