Disclosure of delayed confidential information – Information on the creation of an impairment loss
Current Report No. 34/2021
Date: 24/09/2021
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (The “Company”) informs that Management Board made a decision on September 8, 2021 on delaying the disclosure of inside information to the public, pursuant to Art. 17 sec. 4 of the Regulation of the European Parliament and of the EU Council No. 596/2014 of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6 /EC of the European Parliament and of the Council and Commission Directive 2003/124 / EC, 2003/125 /EC and 2004/72/EC. The confidential information concerned the necessity to write off goodwill of significant value. The reason for the disclosure of delayed confidential information is the recognition of the amount of the write-down.
The reason for the necessity to make a write-off is the result of the conducted tests for the loss of goodwill. It was necessary to write down the goodwill arising from the acquisition of Medi-Lynx by PLN 6.3 million in the consolidated financial statements of the Issuer’s Capital Group. The total amount of the write-off will be charged to the Group’s financial results in Q2 2021 and will be recognized in the Group’s consolidated financial statements in other operating expenses.
At the same time, in the separate financial statements of Medicalgorithmics S.A. a need arose to make a write-down reducing the value of the shares held in the subsidiary Medi-Lynx by PLN 15.7 million. The total amount of the write-off will be charged to the result of Medicalgorithmics S.A. in the second quarter of 2021 and will be included in the separate financial statements of Medicalgorithmics S.A. in Other Operating Expenses.
The events described above are non-cash events and their occurrence will not affect the terms (covenants) of the existing loan agreement held by the Company.
The Company indicates that both the consolidated financial statements of the Company’s capital group as well as the Company’s separate financial statements are verified by an independent statutory auditor as part of the process of reviewing financial statements for the first half of 2021, as a consequence, the possibility of a change in the indicated amounts cannot be ruled out.
The periodic report will be published on September 30, 2021.
In the event of significant changes to the published estimated data, the Company will inform in a separate current report.