Information about write-off
Current report no. 31/2022
Legal basis: Article 17.1 MAR – confidential information
The Management Board of Medicalgorithmics S.A. (“Company”) informs that, having conducted asset impairment tests, it has decided to recognize impairment losses on the value of the cash-generating unit (CGU) of Medi-Lynx together with the allocated goodwill recognized as a result of the acquisition of that company Medi-Lynx (Medi-Lynx CGU). The need for testing results from the conclusion of the Medi-Lynx asset purchase option agreements and loan agreement (cf. RB: 30/2022 dated 18.05.2022), which change the assumptions regarding the recoverable amount of the Medi-Lynx CGU and recognized in the Company’s separate financial statements adopted in the tests performed as of December 31, 2021.
The total write-off amounting to PLN 48.1 million will be charged to the Group’s financial results in Q1 2022 and will be recognized in the Group’s consolidated financial statements under other operating expenses.
At the same time in the separate financial statement of Medicalgorithmics S.A. there was a necessity to make a write-off decreasing the value of receivables from the subsidiary Medi-Lynx by PLN 55.9 million. The total amount of the write-off will burden the result of Medicalgorithmics S.A. in Q1 2022 and will be recognized in the separate financial statements of Medicalgorithmics S.A. in other operating expenses.
The Company indicates that both the consolidated financial statements of the Company’s capital group and the separate financial statements of the Company are still under preparation; consequently, the possibility of changes in the amounts indicated cannot be excluded.
In the event of material changes to the published estimates, the Company will provide information in a separate current report.