iZafe Group AB (publ)

Hello and welcome to this interview with Anders Segerström, CEO of iSafe Group. Hello Anders.

Hello Helena.

Q2-report, 2024, very exciting. You have mentioned the accelerated demand for your products. What do you think is the success story of this big demand right now?

Yes, Q2 is exciting and interesting. Above all, I would say that we have built up a good pipe for Q3. When we work a lot against municipalities, if we look at the Swedish market above all, it is so that when the summer is coming, you do not introduce this type of technology, but then we get the meetings for the aftersummer. We have around 35 municipalities that will start here now. Some we have already started with and some that will start here under Q3. And I would say that in general, the demand for pharmaceutical robots has increased enormously. And we have shown that we have a very user-friendly and time-saving product out there on the market that many have now started to open their eyes to.

So I would say that's the reason. But if it's in this big acceleration, how do you balance the need and ensure that it maintains high quality on the products and services running now?

In terms of the production of hardware, we have a new partner in the middle of Europe to be able to produce more. The first 1000 units went very well, about 5% that we noticed we needed to adjust a little, which we have controlled and adjusted and also improved the routines. And it will always be a bit like that, that we will need to adjust and optimize. But getting 100% finished production is difficult, because it can be some components and it can be other things that affect, but we will strive to achieve as much as possible. I would say that 95% of the first production is very good output, but the basis for how we adjust, that it is good quality that is then delivered, is all our FAT tests. And that is actually Factory acceptance tends to mean that when you have finished the product, you go through a checklist of things where it is tested before it is shipped.

Good. And you have also launched the new Docel 3.0, which is the one you shipped to the Netherlands. Can you mention anything about the improvements with Docel 3.0?

Especially for us as a company, It's faster for the user, but for us as a company, it will be much easier and cost-saving when it comes to the development forward. The previous version, we didn't have enough large softwares and processes to be able to take care of all the different dosage types that we are now starting to take care of when we go to more markets, which made us have one software for each country we were in. So as soon as we develop a new function, we need to do a test release and then a sharp release for each software for each country we were in. And that is impossible in such a small organization we are in. So in connection with the new Dozell, you can have one software that works for the entire market, regardless of where it is in Europe or, in the long run, where it is in the world. So that would be the biggest cost savings, but also helps us in the development forward. And then when it comes to the functionality for the users, it is faster to process, which makes it faster to load. There will be additional time savings for household staff. And then, as a user, you don't really notice that much difference. It actually looks the same. But for us who develop and adapt it, it is much more advanced, simply.

Great. Very exciting. Earlier, you were going to make a planned option solution, but you chose to do a small revision to that and instead secured a loan of 5.5 million. Can you explain the background to that?

During the spring, we saw that the market began to grow. We built six production stations and it costs a lot to build six production stations, bind capital into components, and maybe even build up a warehouse. Together with our largest shareholder, we made a targeted emission, where we actually saw a need of 10 million. But we made a targeted emission of 5 million and then intended to make sure that we get in the other remaining 5 million, hopefully via the option solution. There we made them TO14B. Unfortunately, we got a little wrong advice from our financial advisors. which meant that during the summer we found out that it was no longer feasible. And the tax costs to be able to carry it out, as well as the complexity of doing it, did not go any further, according to the advice we had previously received. Which meant that we had to adjust the capital in a different way. And since we had already started investing in agribusiness and production, we had to do it this way. And this is to be able to deliver and boost during the autumn, given the needs we see.

And this also goes in line with what we have talked about earlier, that the company as such as soon as possible wants and should reach cash flow positivity. What steps are you taking now as a company to get there?

It has cost a lot to develop Dozell all the way to where we are today. We will continue to need to develop Dozell, but we do not need to use as much external competence. Now it's about further development, and that can be done with the personnel we now have in-house. And then the revenues will increase, so that together with smart, keep the money in a smart way and actually increase the revenues. And this will be the biggest part of me and our new CFO who starts in October will work with.

Good. And can you give a little hint of something exciting that's happening in the company now?

Något som är spännande. Jag tycker det är superspännande att vi får ut så pass många produkter här förhoppningsvis både i Sverige och i Holland. Men också att vi börjar se intresse från Norge här närmast och sen då Finland. Så att vi verkligen kan hjälpa personer att ta rätt medicin i rätt tid. Och det är det nyckeltalet som jag tycker är det särklass viktigaste att följa sen. Hur ofta vi har hjälpt personer att ta rätt medicin i rätt tid helt enkelt.

Jättespännande. Det låter ju som att ni har en väldigt spännande framtid framför er. Så då säger jag tusen tack Anders för en intressant pratstund och stort lycka till framöver. Ja, tack. Tack så mycket.