iZafe Group AB (publ)

Hello and welcome to this interview with Anders Hegerström, 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?

Q2 is exciting and interesting. What I would say is that we have built up a good pipeline to Q3. When we work a lot with municipalities, especially in the Swedish market, when the summer is approaching, we do not implement this type of technology, but we get the meetings in the summer. We have around 25 municipalities that will start here now. Some we have already started with and some that will start here under Q3. I would say that in general, the demand for medical care robots has increased enormously. We have shown that we have a very user-friendly and time-saving product out there on the market, which many have now begun to raise their eyes for. So that is the reason.

In this big acceleration, how do you balance the demand and ensure that the quality of the products and services is maintained?

The production of the hardware is a new partner in the middle of Europe to make more production. The first of 1000 units went very well, about 5% that we noticed we had to adjust a little on, which we have checked and verified and also improved the routines. And a little so will always be that we will need to verify and optimize, but to get 100% full production is difficult because there can be certain components and other things that affect, but we will strive to reach as much as possible. I would say that 95% of the first production is very good, but the reason for how we ensure that it is good quality that is then delivered is all our FAAT tests. And it is actually a factory acceptance test. It means that when you have finished the product, it goes 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 you are the boss of in Holland. Can you mention anything about the improvements with Docel

3.0? Especially for us as a company, it is faster to use, but for us as a company it will be much easier and cost-saving when it comes to development forward. The previous version we did not have enough large softwares and processors to be able to handle all the different doze type that we are now starting to handle when we go to more markets, which made that we had one software for each country we were in. So as soon as we developed a new function, we needed to do a test release and then a sharp release for each software for each country we were in. And that is insurmountable in such a small organization we are. So in conjunction with the new Docel, you can have one software that works for the entire market, regardless of where in Europe or in the world. So that is probably the biggest cost-saving, but also helps us in development forward. And then when it comes to functionality for the users, it is faster to process, which makes it go faster and charge, it will be a longer time saving for home care staff. And then as users, we do not really notice a big difference, it actually looks the same. But for us who develop and adapt it, it is much more advanced.

Great, very exciting. Earlier you said you would make one planned option release, but now you chose to make a small revision to that and instead have secured a loan of 5.5 million. Can you explain the background to that?

During the spring we saw that the market was starting to grow, we wanted to secure production and it costs a lot to secure production, bind capital into components, maybe even build up a camp. And then together with our largest shareholders we made a real-estimate, where we actually saw a need of 10 million, but we made a real-estimate of 5 million and had then thought of making the other 5 million registered, hopefully via the option release. There we made them TO14B. Unfortunately, we got some 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 do that, as well as the complexity to do that, did not go according to the advice we had received earlier. Which meant that we needed to secure the capital in a different way, and since we had already started the investment for camp and production, we were forced to do it this way. And this was to simply be able to deliver and accelerate during the autumn on the need we see.

And that goes a bit in line with what we have talked about earlier, that the company as such as soon as possible will and should achieve cash flow positivity. What steps are you now as a company to be able to get there?

Well, it has cost a lot to develop and sell all the way to where we are today. And we will continue to need to develop and sell, but we do not need to use as much external expertise now, because now it is just about developing and that can be done with the personnel we now have in-house. And then the income will increase. So that together with smart, keep the money in a smart way and actually increase the income. And this will be the biggest part of me and our new CFO, who will start in October, will work with. And

can you give us a little hint of something exciting that is happening in the company?

Something exciting? I think it is exciting that we are getting so many products here, hopefully both in Sweden and in Holland. But also that we are starting to see interest from Norway, here closest, and then Finland. So that we can really help people to take the right medicine at the right time. So that is the key point that I think is the most important thing to follow, how often we help people to take the right medicine at the right time.

Very exciting. It sounds like you have a very exciting future ahead of you. So I say thank you so much Anders for an interesting conversation and good luck in the future.

Yes,

thank you. Thank you very much.