Toleranzia (TOL) Q1 2025 earnings summary

Executive summary

• Advanced lead drug candidate TOL2 with conditional clinical trial approvals in Sweden and Germany; Denmark rejected application, prompting further engagement with Danish authorities.

• Entered a merger plan with Flerie AB, aiming for delisting and long-term funding stability; board unanimously recommends merger.

• Entered a conditional SEK 20 million credit facility with Flerie AB, contingent on merger approval at the May 7, 2025 EGM.

Financial highlights

• Operating loss (EBIT) for Q1 2025 was SEK -3,292 thousand, compared to SEK -1,641 thousand in Q1 2024.

• Cash flow from operating activities was SEK -3,190 thousand, improving from SEK -3,659 thousand year-over-year.

• Investments in intangible assets reached SEK 5,171 thousand, up from SEK 4,687 thousand year-over-year.

• Cash and bank balances at March 31, 2025 were SEK 5,417 thousand, down from SEK 9,747 thousand a year earlier.

• Earnings per average share were SEK -0.01, compared to SEK 0.00 in Q1 2024.

Outlook and guidance

• Additional capital required to complete clinical trial preparations and initiate the trial; full funding not yet secured.

• Conditional loan from Flerie AB may cover clinical preparation, but further significant funding needed for trial execution.

• If merger is not approved, significant uncertainty exists regarding future financing and operational continuity.