FOURTH QUARTER OCTOBER - DECEMBER 2019
Revenues:0 KSEK (0). Operating earnings after taxes -1 888 KSEK (-2 947).
Net income per share:-0,21 SEK (-0,12).

JANUARY - DECEMBER 2019
Revenues:0 KSEK (0). Operating earnings after taxes -7 679 KSEK (-9 781).
Net income per share:-0,87 SEK (-0,42). Solidity: 75% (78).

Net income per share: Net income for the period divided by the average number of shares during the period. Total number of share * as of 30 December 2019 amounted to 8 872 315 shares.
IMPORTANT EVENTS DURING 2019

• On 28 January 2019, the company entered into a loan agreement with the European High Growth Opportunities Securitization Fund (EHGO), through which EHGO paid SEK 1.6 million to the Company. The loan was repaid on July 24.
• Change in quota value, reduction of share capital and aggregation of shares was carried out on 8 March. The aggregation of shares 1:10 (ten existing shares were added together into one share.)
• The company received SEK 1.23 million after a directed rights issue to AB Emendum on June 19. Exchange of convertible bonds and directed rights issues to EHGO and Emendum AB, as well as a rights issue for the Company's shareholders  totaled SEK 12 487 889 in 2019.
• Biovation Sciences Ltd. (Biovation)  became principal shareholder in QuickCool AB. The holding amounted to 29.95%  (equivalent to 1 590 000 shares) of the Company's shares.
• Four new board members were appointed at the Extraordinary General Meeting on June 20. Göran Brorsson (continues as Chairman of the Board), Lennart Sjölund (continues as board member). The four new board members are Patrick Marché, Balász Tüske, Afnan M. Al Khalifa and Victor Humberdot.
• Hired Jim Hansson as Director of Operations, Jonas Wahlfrid, Senior Embedded Software Engineer and Håkan Erlandsson as CTO.
• On November 19, QuickCool entered into a letter of intent with Biovation regarding an RTO in medical cannabis, which was later withdrawn.
• In total, the outstanding debt amounted to EHGO of SEK 7,8 million in 2019-12-31 for not yet exchanged convertible notes.

•    On February 12, 2020, QuickCool entered into a letter of intent with Esport company, GameCubed Inc, regarding a potentially reverse take-over. According to the proposal, a 100% stake in GameCubed will transfer to QuickCool in exchange for newly issued QuickCool shares. The completion of the transaction is subject to a number of conditions, including the implementation of binding agreements and approval of both the shareholders and the market trading venue.

CEO FREDRIK RADENCRANTZ

The past year

We started the year with a tough, but necessary, decision. I sincerely regret this, but it was necessary to make significant changes to the development project at the beginning of the year in order to reduce technical risks and solve supplier issues. The consequence resulted in further delay in the project. We believe that this decision was necessary in order to achieve the targets that we have for the QuickCool® SYSTEM.
When one reflects upon the past year, one understands that it has been an eventful year. Participating in Therapeutic Temperature Management in Miami, Post Cardiac Arrest International Symposium and SAMTIT, meetings with potential distributors in different countries, as well as meetings and presentations with investors, Aktie-spararna and Aktiedagar are just a few examples of activities in addition to the day-to-day operations where we focus on the development project.

Development

During the year we have changed the way we work. Through continuous testing of components, we ensure  a system solution, which meets our requirements. We intend to conclude the development project and all related documentation in accordance with the 1993:584 Law on Medical Devices and EU Regulation 2017/745 (MDR) in 2020.

We have invested in production equipment and machines for our production of balloon catheters. This creates synergies, and enables large-scale production with fewer number of manual handling. Our partners are actively involved in reducing our production costs. We have  started production of the first balloon catheters that will be used for long-term tests, validations and the like.

IPR portfolio

We filed a patent application in November, "Device and Method for Cerebral Temperature Control", to PRV that strengthens our patent portfolio. We are working on a few more thoughts and ideas that we intend to pursue in the form of patent applications in the spring.

Quality Management System
The annual review of our quality management system according to ISO 13485:2016 was carried out by TÜV Süd in November. The audit certifies that QuickCool AB has a quality management system that meets the requirements regarding the development, production and distribution of medical devices.

The Market

Treating cardiac arrest patients with mild hypothermia is common practice throughout the Western world. We will address cardiac arrest as our first indication. Some 1.5 million Europeans suffer from ischemic stroke every year in Europe. The Euro-HYP-1 study meant to include 2,500 ischemic stroke patients, but only 98 patients were finally included in the study.

Some conclusions from Euro-Hyp-1 are in our favour: 
(i)  there is a general agreement among the medical profession that 'mild hypothermia' should benefit an ischemic stroke patient in a similar way to a patient who has suffered cardiac arrest. (ii) current surface cooling technology causes shivering. (iii) biomarkers in patients' blood indicate that mild hypothermia is favorable (lower GFAP levels). Treatments did not last long enough to show this scientifically and iv) mild hypothermia treatment does not harm these stroke patients. Our solution does not cause shivering. We will address ischemic strokes as our next indication.

Interest in, and the future application of, mild hypothermia means growing market potential. Total global sales value amounted to approximately USD 1 billion in 2018, and is projected to increase by 6.34% annually and amount to just over USD 1.8 billion by 2027*.

The potential for QuickCool® SYSTEM is confirmed by the interest we encounter with prospective distributors. We will sign additional distributor agreements in 2020, but no sale will take place until after QuickCool[© ]SYSTEM is CE-marked.
Future structure
In 2019, the board investigated a number of alternative solutions to create a better value for the company's shareholders. During the second half of the year, the company's largest shareholder Biovation proposed several alternatives for RTOs. For various reasons, the Board has rejected them. In February 2020, a proposal has been presented to the Board that meets the requirements of the Board of Directors for an RTO. On February 12, 2020, we signed a letter of intent with the Canadian Esport company GameCubed Inc. and its shareholders, according to which the shareholders of GameCubed  will transfer a 100% stake in GameCubed to QuickCool in exchange for newly issued QuickCool shares.
The completion of the transaction is subject to a number of conditions, including the implementation of binding agreements and approval by both shareholders and the market trading venue. At the same time as the completion of the reverse acquisition, all assets/operations/employees in QuickCool's existing operations will be spun off into a newly formed 100% subsidiary of QuickCool ("New QuickCool") and restructured. The Board evaluates the possibility of distributing the shares in New QuickCool to the shareholders of QuickCool, through a dividend or similar structure. The Board of Directors will revert in March with more information and proposals for a decision on the future structure.

February 27, 2020

Fredrik Radencrantz, CEO
* Research Nester, 2019.

GENERAL ABOUT THE BUSINESS

During cardiac arrest, the supply of blood and oxygen to the body's organs ceases, which has dramatic consequences for the brain, which already after a few minutes without oxygen suffers damage - damage that continues to develop negatively when the heart starts again. Cooling of the body and brain can slow down the harmful processes, which means that brain damage can decrease significantly and give the cardiac arrest patient a greater chance of survival.

QuickCool develops a portable and battery-powered cooling system with rapid intranasal application for body temperature control of intensive care patients. QuickCool's system only occupies the nasal cavity, the healthcare professional has full access to the patient for monitoring and other treatments, if required.

The market in general

Sweden is a pioneering market in hypothermia treatment and almost all major hospitals in the country are currently cooling cardiac arrest patients. In most European countries, the trend is the same in terms of cardiac arrest patients, while in other markets, such as the United States, it has taken much longer to introduce hypothermia as standard after cardiac arrest despite recommendations from American Heart Association (AHA). Studies are underway examining whether mild hypothermia benefits clinical outcomes in several areas. Some interesting indications include ischemic stroke, sepsis and Traumatic Brain Injuries (TBI).

DEVELOPMENT IN FIGURES

Turnover

Net sales for 2019 amounted to SEK 0 (0).

Results

The company's profit after tax in the fourth quarter amounted to SEK -1,888,000 (-2,947). Profit after tax for the full year 2019 amounted to SEK -7,679,K (-9,781).

Financial position, cash flow and investments

Outgoing cash and cash equivalents at year-end amounted to SEK 36 K (263). During the fourth quarter, intangible assets totaled SEK 2,126 K (3,285), consisting of balanced expenditure on development work 2,126 KSEK (3,181) and KSEK 104 (104) were acquired in respect of expenditure on patents and trademarks. In total for the year, the corresponding figures were SEK 9,657 k (11,694), consisting of balanced expenditure 9,657 (11,494) and 0 KSEK (200) for patents and trademarks.

Dividend

The Board of Directors proposes that no dividend be paid.

Transactions with related parties

The company defines senior executives, board members and close family members of these individuals as related parties. All related transactions during the period have been made at market prices.

Share

There is one type of share in QuickCool AB. QuickCool's share is listed on spotlight stock market under the ticker symbol "QUICK".  As of December 30, 2019, the number of shares in QuickCool was 8,872,315 and the number of warrants was 3 860 212.
 
Largest shareholders as of 31/12 2019

Name, Shares/votes in %
Biovation Sciences Ltd, 17,93%
Parkallén Invest AB, 10,10%
Nordnet Pensionsförsäkring 7,86%
Aktiebolaget Emendum, 6,88%
Mats Danielsson, 2,69%

Principles for the establishment of the year-end report

The report has been prepared in accordance with the same accounting principles as in the Company's latest annual report, i.e. in accordance with BFNAR 2012:1,
Annual Report and Consolidated Financial Statements (K3). The report was prepared in Swedish kronor.

VALUATION PRINCIPLES

Intangible fixed assets

Development costs have been accounted for and activated to the extent that they were not financed with grants. Depreciation begins when the project is essentially completed. To the extent that the development costs activated and financed by grants, these contributions have been depreciated against the amount capitalised.

External expenditure on processed patents and trademarks has been balanced. Depreciation starts when sales of the company's products and its services began. Where the carrying amount of an asset exceeds its estimated recoverable amount, the asset is immediately written off to its recoverable amount.

Risks and uncertainties

• QuickCool is a development company which may mean that it may be some time before the company can account for sales revenue.
• Development costs are difficult to estimate in

• Validation studies may result in unforeseen negative research results.
• There is a risk that QuickCool will not receive the necessary registrations to sell and market its products.
• QuickCool is subject to several government regulations that are subject to change.

Annual General Meeting and the availability of the annual report

The Annual General Meeting will be held in Lund on May 7, 2020.
The annual report will be available for download in PDF format on the Company's website  (www.quickcool.se)  starting from 2020-04-16.

Auditor review

The year-end report has not been reviewed by the Company's auditor.

• Year-end report for January-December 2019 will be published on 27 February 2020
• The annual report 2019 and interim report for January-March 2020 will be published on 7 May 2020
• Interim report for January-June 2020 will be published on 27 August 2020
• Interim report for January-September 2020 will be published on November 5, 2019
• The interim report for Q4 and full year 2020 will be published on 25 February 2021.

Lund, 27 February 2020
QuickCool AB
Board of Directors

For further information, please contact:

Fredrik Radencrantz, CEO +46 73 834 11 88
Göran Brorsson, Chairman of the Board,
 +46 70 511 78 60

CONDENSED INCOME STATEMENT

Total Operating revenues, 2 125 730 3 186 172 9 702 373 11 503 822
Inventories etc.
         
Operating costs
Raw materials and -704 016 -537 814 -2 273 548 -1 372 814
consumables
Other external expenses -2 134 138 -4 352 665 - 9 331 734 -15 500 813
Personnel costs -1 098 238 -1 142 961 -5 238 347 -4 173 057
Depreciations/Amortization -58 715 -99 314 -61 838 -152 612
s
Other operating costs -6 470 0 -13 928 -36 208
Total operating costs - 4 001 577 -6 132 754 -16 919 395 -21 235 504
Operating Earnings -1 875 847 -2 946 582 -7 217 022 -9 731 682
         
Financial items
Other interest income and 0 0 0 0
similar profit/loss items
Interest expenses and -11 893 -710 -462 031 -49 061
similar profit/loss items
Total financial items -11 893 -710 -462 031 -49 061
         
Profit after financial -1 887 740 -2 947 291 -7 679 053 -9 780 742
items
         
Profit before tax -1 887 740 -2 947 291 -7 679 053 -9 780 742
         
Profit for the period -1 887 740 -2 947 291 -7 679 053 -9 780 742

CONDENSED BALANCE SHEET

  2019-12-31 2018-12-31
ASSETS    
Subscribed capital but not paid 0 844 113
     
Fixed Assets    
Intangibel fixed assets    
Capitalized expenditures for 45 587 878 35 930 958
development work and similar
work
Concessions, patents, licences, 1 320 049 1 320 049
trademarks and similar rights
Total intangible fixed Assets 46 907 927 37 251 007
Tangible fixed Assets    
Inventories, tools and 428 118 15 956
machinery
Total tangible Fixed Assets 428 118 15 956
Total Fixed Assets 47 336 045 37 266 963
     
Working capital    
Inventory    
Inventory etc.   34 577 34 577
Total Inventory 34 577 34 577
Current receivables    
Other receivables 264 340 298 458
Prepaid expenses and accrued 475 145 509 965
income
Total current Receivables            739 485                 808 423
Liquid assets    
Cash and bank 36 419 263 370
Total Liquid Assets 36 419 263 370
Total current receivables 810 481 1 950 483
     
Total Assets 48 146 526 39 217 446

Shareholders' Equity and Liabilities

  2019-12-31 2018-12-31
Shareholders Equity and Liabilities    
Tied capital    
Share capital , 8 872 315 shares, Quota value 1 SEK 8 872 315 13 924 368
Non-registered share capital 500 000 2 576 470
Reserve fund 0 5 597 197
Development expenditure fund 36 532 428 26 875 508
Total tied equity 45 904 743 48 973 543
     
Unrestricted equity    
Retained earnings -7 556 721 -10 656 128
Share premium 5 240 713 2 064 172
Profit for the period -7 679 053 -9 780 742
Total unrestricted equity -9 995 061 -18 372 698
Total Equity 35 909 682 30 600 845
     
Long term liabilities    
Convertible loan 7 800 000 4 600 000
Other liabilities 578 303 0
Total long-term liabilities 8 378 303 4 600 000
Current liabilities    
Accounts payable 1 716 827 1 864 954
Current tax liabilities 61 127 109 245
Other liabilities 423 730 213 581
Accrued expenses and deferred income 1 656 857 1 828 821
Total Current Liabilities 3 858 541 4 016 601
     
Total Equity and Liabilities 48 146 526 39 217 446

CONDENSED CASH FLOW STATEMENT

  2019-10 2018-10-01 2018 2019-01-01 2019 2018-01-01 2018
-01 -12-31 3 months -12-31 12 -12-31 12
2019 months months
-12-31
3 months

Operating        
activities
Operating -1 887 -2 947 291 -7 679 053 -9 780 743
profit 740
after
financial
items
Depreciation/ 58 715 457 709 61 838 152 612
Amortiz
ation
Change in - 54 - 729 569 913 051 1 456 534
accounts 630
receivables
Change in -349 1 051 694 -158 060 777 381
current 971
liabilities
Change in 0 -34 577 0 -34 577
Inventory
Cash flow -2 233 -2 202 034 -6 862 224 -7 428 793
from 626
operating
activities
         
Investment        
activities
Acquisitions -2 125 -3 284 487 -9 656 920 -11 694 231
of 731
intangible
fixed
assets
Acquisitions 0 0 -474 000 0
of
tangible
fixed
assets
Cash flow -2 125 -3 284 487 -10 130 920 -11 694 231
from 731
investing
activities
         
Financing        
activities
New 4 392 5 705 544 16 766 193 12 763 693
issue/option 347
proceeds/loan
s
Cash flow 4 392 5 705 544 16 766 193 12 763 693
from 347
financing
activities
         
Cash flow 32 990 219 023 -226 951 - 6 359 331
for the
period
Liquid funds 3 429 44 347 263 370 6 622 701
at
beginning of
period
Liquid funds 36 419 263 370 36 419 263 370
at end
of period

CHANGE IN EQUITY IN SUMMARY

    Share- Fund for   Reserve Premium Retained Net Total
capital development Fund Fund Earnings Income
costs
  2018
  Amount at 14 676 15 381 201 5 597 6 152 958 -4 552 -5 036 32 217
beginning of year: 106 197 984 584 894
  Appropriation of
earnings according
to the AGM:
  To be capitalized       -6 152 1 116 5 036 0
in new account 958 374 584
  Rights issue 6 099     2 064 172     8 163
521 693
  Change in fund for   11 494 307     -11 494   0
development costs 307
  Reduction in share -4 274       4 274    
capital 789 789
  Profit for the           -9 780 -9 780
period 742 742
  Amount at year-end 16 500 26 875 508 5 597 2 064 172 -10 656 -9 780 30 600
838 197 128 742 845
   
  2019
  Amount at 16 500 26 875 508 5 597 2 064 172 -10 656 -9 780 30 600
beginning of year: 838 197 128 742 845
  Appropriatio
n of earnings
according to
Board's
proposal:
To be     -5 597 197 -2 064 -2 119 9 780 0
capitalized 172 373 742
in new
account
Rights issue 7 247     5 240     12 487
and 177 712 889
exchange of
convertible
notes
Non 500 000           500
-registered 000
share
capital
Change in   9 656     -9 656   0
fund for 920 920
development
costs
Reduction in -14 875       14 875   0
share 700 700
capital
Profit for           -7 679 -7 679
the period 053 053
Amount at 9 372 36 532 0 5 240 -7 556 -7 679 35 909
year-end 315 428 712 721 053 681