Welcome to Intervacc Q3 conference call for 2023. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to CEO Jonas Sohlman and CSO Andrew Waller. Please go ahead.
Good morning, everyone, and welcome to this Q3 presentation of the results from Intervacc. I will try to guide you through what we have done in the result report that we have presented as of this morning. And I will not sort of delve into to present what is actually in the presentation as such, but rather try to focus on what we've done during this quarter. So in essence, just to state it first and foremost, I think it's important to be very, very clear that in the result that we have currently for this quarter, it has deteriorated for the quarter, quite, quite a lot if you just were to compare it to the previous quarter last year. And the reason for that is due to those one-off adjustments that we have done and the write-offs.
With that said, I'm just gonna sort of run through the numbers then, that we do have a sales for here for the quarter, slightly better for the period. We also have for the year, for the first nine months, is also slightly better. And if I then take on, as I mentioned before, the operating loss for the quarter, if I adjust for the write-downs that we have done, the one-off write-downs for SEK 21.2 million, we have an adjusted result that is very close to what we presented last year. And what you can see by that is basically that we are keeping the track on costs as we have done in the past.
It's slightly worse if I compare it to, for the nine months, because if I adjust there, I can see that we have a total deterioration for with approximately SEK 30 million, a little bit in excess of SEK 30 million, whereas 21 is related then to this one-off write-downs. So what is then the residual part? Well, the residual part is basically that the development costs that previously have been activated as an asset is now expensed, so we have costs for those. So that is basically what is happening then. So if I'm then sort of delving into these one-off items that we have, as I also described more in detail in the CEO comment, we do have a write-down that is affecting the result, but is not a . In its majority, it is not affecting cash flow.
So we are writing down inventory, both what we refer to as being drug substance and also drug products. And the reason for that is mainly due to the fact that all of these products do have a certain shelf life. And as you've seen and you know, is that the sales aren't developing or haven't been developing in that speed that was anticipated first. But in addition to that, one also needs to know that the majority of these costs should have been taken even so, because we are in a process of developing our production process, et cetera. Then also we are putting up reserves for drug products where we have had sales, where there's a recourse, and the residual part is related to the resignation of Andreas.
So, then, on top of that, is basically that all of these costs that we now are taking on is really to work to improve the, for instance, shelf life of the products, which we have achieved as well, as I'm mentioning in the CEO comment. And there, I think it's important to understand that that will prolong the period when we can sell our products in the future. So we have improvements that is coming along all the time. In addition to this, we also deactivate a portion of the deferred tax asset, or all of the deferred tax asset that we have on the balance sheet.
This is something historical, where there were back in 2018, there was an asset or a net operating loss at the time, and that was activated due to expectations of profit in the coming years. However, that did not happen, and then we have had that asset on the balance sheet for quite some time. But what we view now is not a change in projections of sales, but rather the fact that we do have net operating losses that could be used. In addition to that, from a tax purpose, we could accelerate the depreciation on the balanced development costs purely from a tax perspective, and hence, we have decided to deactivate that deferred tax asset.
However, one needs to bear in mind that we do not lose the asset as such, given that you have a perpetual possibility to keep those assets, even though they're not activated on the balance sheet. Coming back to the market and what we can do, I see that we do see that the sales are relatively small volumes, so there are small volumes, but we can see it's picking up for the last few months. And I think that we are starting to work with collaboration with new parties. As you probably have seen, we have initiated working closer to insurance companies. We have established a collaboration with the insurance company, Dina Försäkringar. We are working with others, and we see signs that the interest and demand for Strangvac is picking up.
So I think that is the really important message for this period is looking forward and just realize that what we just presented is a one-off item that we have taken more from a historical perspective rather than looking forward. And when it comes to marketing and what we actually can do, trying to market directly to the end customers, we are quite, quite restricted in how we can market that directly to the end consumers or the users of our Strangvac, the vaccine against strangles. However, we have other channels where we are working, and we are working with so-called influencers or what we refer to as key opinion leaders, and that is progressing all the time.
I'm thinking that we are feeling quite certain that we have a very good product, and we are in the implementation of that sales, and we will work further on that. I think that we are coming and seeing a lot more interest, growing interest, a lot more questions from veterinarians, horse owners, and it's a growing interest. It's slowly, but it's moving, and it's moving in a positive direction. So there, I'm gonna make the full stop and open for questions.
If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Okay. Apparently, we didn't have any questions. Hopefully, that was then clear, and clear in that message. And I can only say that I'm pleased to be in this organization, and I'm looking forward that we are working on the sales side and try to implement new ways of how to have a growing interest for our product. It is on the slow end, we know that, but we are working all the time on this to intensify the sales piece, and hopefully, that will show us results over time. Thank you very much.
Can I just say a few words as well?
Sure.
So just, I've been attending conferences right the way throughout Europe, and meeting vets who have been using Strangvac in horses in normal situations, and using it alongside other vaccines, and they've been very happy with the way the vaccine has been behaving there, but also probably more importantly, in outbreak situations, which is a really tough test of the vaccine, and there, the feedback has been absolutely incredible. So as Jonas said, we're absolutely convinced that we have a very safe and very effective product here. And that over time, as more people get familiar with the use of the vaccine in horse populations, we're confident that the market is gonna continue to grow, and grow, and we're gonna prevent...
We already have prevented many horses from falling ill with this pretty dreadful disease. And so it's a fantastic project to, to be involved in.
Okay. Thank you, Andrew. If there aren't any more questions, we will then close this session. Thank you very much, and bye.