Reference is made to the announcement by
In addition to providing the interim balance sheet, the Board wishes at this time to make additional clarifications regarding its financial position.
In the Q 4 2019 report published on
The global pandemic presents many challenges to us all, including to the Company. The Company has taken and continues to take actions to reduce its operating expenses. As part of this effort the Company further reduced its headcount to 18 employees from 24 during March, of which some members are on partial furlough. In addition, salary reductions have been instituted for the executive team. Further salary reductions are planned in May in connection with the proposal to the Extraordinary General Meeting, pursuant to which the Board would be authorized to issue shares to employees in return for employees accepting further reductions in salaries. Assuming the Extraordinary General Meeting authorizes it, the Board also plans to reduce cash board fees in exchange for equity. In addition to reducing spend via reductions in employee and board compensation, the Company is actively pursuing reductions across non-payroll costs, such as building lease terms and debt repayment terms.
As previously announced, the Company continues to pursue monetizing its CNECT software platform and related NFC assets. Discussions with potential acquirers remain ongoing, however, progress has been slower than hoped. The Board remains cautiously optimistic, in the midst of a generally challenging global financial environment that, in time, the Company will be able to monetize, for relatively modest amounts, its NFC IP, NFC inventory and/or CNECT software platform. The Company has already monetized its EAS inventory.
As was announced in
The Board is mindful that its announced equity raise comes in the midst of the extraordinary global context of an expanding COVID 19 pandemic. As a consequence, the Company is now proposing to focus on raising only sufficient funds to provide adequate time to demonstrate its initial milestones. The objective is to reach these initial milestones on the other side of the pandemic surge. The two key milestones planned to be completed during the second quarter of 2020 are 1) to announce multiple battery-specific IP filings leveraging the Company’s existing process technology patents and technology and 2) build the first solid-state lithium battery device using Thinfilm equipment. With the successful demonstration of these two milestones the Company will be able to demonstrate its prototype battery devices to customers and potential partners in order to seek additional funding for its battery business according to the previously presented business plan. At that time the Company plans to seek additional funds from the investor market, including the US market.
As stated in the EGM notice, further information about the Company’s financial condition will be given at the Extraordinary General Meeting.
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Investor Relations contacts:
Email: kevin.barber@thinfilmsystems.com
Email: mallorie.burak@thinfilmsystems.com
Investor Relations telephone: +1 408 503 7380
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Attachments
Thin Film Electronics ASA -31 December 2019 Interim Balance Sheet-
Thin Film Electronics ASA Audit Opinion_Interim Balance Sheet
31 Dec 2019
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