When the delay was announced in April HeiQ’s shares tanked, losing almost a third of their value, and trading in the group’s shares has been suspended since early May.
The group has also restated its results for 2021. Revenues and corresponding profits that were originally recognised in H1 2022 and H2 2022 from certain milestone partnership agreements have been deferred following a fresh audit.
Sales in 2022 fell by 14.8% to $47.2m (£38.9m), and the business made an operating loss of $29.2m (2021 loss: $1.4m).
It also made a $13m goodwill impairment charge.
At the beginning of 2023, HeiQ reorganised into three commercial business units: Textiles & Flooring, Life Sciences, and Antimicrobials.
Its Viroblock technology can be used in graphic arts coatings including commercial printing, food and pharmaceutical packaging.
Its textile technologies can be used for odour control and temperature regulation.
Commenting on the filing, HeiQ co-founder and CEO Carlo Centonze, said: “I would like to first acknowledge the understandable frustration felt by our valued shareholders in regard to the delayed publication of FY 2022 accounts following our 10-month audit and the corresponding six month suspension from trading. As the largest shareholder, I share this burden and as group CEO I have addressed the commercial difficulties it generated for us.
“FY 2022 was a challenging year for our industry and our business, as we faced sudden and dramatic market disruptions in H2 2022, caused by large inventory de-stocking by brands and retailers following reduced consumer demand, high inflation, and rising interest rates globally.”
He said that measures taken to reduce the group’s cost base since the start of the year included relocating various support functions from Switzerland to lower cost locations, including Portugal.
“We have not seen the challenges abate, but actions taken since the start of the year mean we will be in a better position going forward to manage the challenging macro-economic environment, continue building value in our core innovations and preserve our ability to deliver when the market demand turns.”
The benefits should be seen in its H2 results, “with corresponding stabilization of our financial performance”.
“However, we remain alert to take additional corrective actions should markets deteriorate further.”
For the half year to 30 June 2023, sales were down 26% at $20.5m, and the business made an operating loss of $6m (2022 H1 loss: $1.6m).
Trading in HeiQ shares is expected to resume imminently once its annual report and accounts has been uploaded.
Regarding the potential $100m-plus lawsuit filed against US partner ICP Industrial just over a year ago, HeiQ stated: “Within the same legal proceeding, ICP Industrial Inc, has filed a counter claim against the group. Although the group is confident in its legal position, the outcome of the legal proceedings as well as the court-mandated mediation remains uncertain.
“Therefore, while a future economic benefit is expected, it can not be reliably quantified at this point in time and could bear the risk of prejudice given the ongoing legal proceedings.”
