Thin Film Electronics (ThinFilm) revenues amounted to NOK 1.8 million in 2011, with approximately NOK, with 1.7 million recognised as government grants.
Sales revenue in 2011 amounted to NOK 0.1 million, and was related to sales of technology demonstration kits, engineering work and product development projects provided to strategic customers and partners.
|Thin Film Electronics Financial Data 2011
|Profits before tax||(38,691)||(24,893)|
Company payroll costs amounted to NOK 16.6 million, including the notional (non-cash) cost of share-based compensation of NOK 4.0 million. The increase in payroll costs for 2011 was due increases in R&D resources to accelerate technical development work and to meet the increasing interest from potential customers and partners. At the end of 2011, there were 14 full-time employees, compared to 7 full-time employees at the end of 2010.
Thinfilm operates at a loss and does not have assets suitable for secured borrowing. At the date of the annual report, theThinFilm’s cash position is adequate to cover all projected expenses for the rest of 2012 and into 2013. Furthermore, with the additional liquidity expected from the outstanding and proposed warrants, the Company expects to be funded into 2014.
Going forward, Thinfilm foresees two important revenue sources: (i) Sales of its own manufactured products and (ii) licensing/royalty revenue, where partners and customers pay for using the Company’s intellectual property rights (IPR).
Thinfilm’s ability to earn revenue partly depends on continued successful technology and product development as well as the Company’s ability to legally protect its IPR. This is, in turn, dependent on the Company’s ability to attract and retain competent staff and the adequacy of Thinfilm’s patenting and other IPR-protection activities.
Thinfilm is not aware of directly competing technologies to its printed memory.