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.

Consolidated statement of financial position

(In Euros)

Consolidated income statement

(In Euros)

Consolidated statement of cash flows

(In Euros)

Consolidated statement of changes in equity

(In Euros)

* 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
         jason@jmolner.com