iZafe Group's Quarterly Report January-March 2024 - Seite 2

Dear shareholders, customers, and employees,

Our journey towards innovation and digitization of healthcare continues to deliver tangible results. With pride, I can report that the net revenue for the quarter amounted to 3,410 TSEK, representing an organic growth nearly 15 times higher than the corresponding quarter of the previous year. Our business model, where our partners initially purchase the hardware which then generates recurring monthly revenues after distribution in the market, continues to demonstrate its value. These recurring revenues are the core of our business and are expected to create significant value over time.

Over the past two years, we have been engaged in developing a new, improved version of Dosell. This hardware is not only future-proofed but also designed to handle advanced features we plan to implement. Through partnerships with a prominent production partner, we have enabled scaling of production to meet ever-growing demand.

While switching production partners and developing new hardware, we also delivered 1,000 units to our partner in Holland, requiring extensive customization and rapid development. Despite these challenges, our small but dedicated team has managed to maintain a high level of production, reflecting our ability to act quickly and efficiently under pressure.

To date, we have completed over 150,000 successful dispensations, where the right medication has been delivered at the right time. The number of dispensations is expected to increase rapidly as we distribute more Dosell units.

We have also taken strategic steps to strengthen our market positions. After reassessing our partnerships, we terminated the exclusivity agreement with our partner in the UK and introduced stricter requirements for our existing and potential partners. These measures aim to ensure that we collaborate with the most committed and capable players, giving us the best possible conditions for success in the markets we enter. This raised standard for partnerships will strengthen our position and promote sustainable growth in both existing and new markets.

Our inventory capacity and access to components have significantly improved, thanks to capital injections from our major shareholders. This financial reinforcement is crucial to meet demand, accelerate deliveries, and strengthen our production team so that we can quickly adapt and develop Dosell for additional markets.

We have also commenced deliveries under the procurement we won with VGR, although the volumes are still small. We are actively working to increase awareness of Dosell and its prescription capabilities, supported by a new colleague dedicated to the VGR region.