VibroSense Dynamics AB

There is a great deal of memory of the healthcare sector for new, better and more precise instruments, measurement methods and analysis methods. This is not just us who say it, but above all we say it in hospitals, both in Sweden and abroad. And of course, we have a solution to that. It's a technology that we own, called multi-frequency vibrametry. And the instrument that we work with is called Vibrosense Meter 2. The advantage of this instrument and this technology, when compared to what is on the market, is that we can identify and detect peripheral nerve damage very early. We can follow up over time, we store it in a database, För vårdens del innebär detta också att man får en mycket tidigare och mer specifik diagnos, kan ställa det av en periferisk närmskade och kan sätta in åtgärder i förebyggande syfte för de patienter som drabbas av detta. Så väldigt viktigt. Några ord här om kvartalet som har gått, och första kvartalet, vi har ju brutit räkenskapsår. Som ni ser, för er som är med oss och tittar på webben och inte bara lyssnar, Vi omsätter netto 546 000 under första kvartalet och det är faktiskt femte kvartalet nu i rad som vi ökar nettomsättningen jämförelsevis med samma period föregående år. Jag är väl medveten om att det fortfarande inte är någon stora siffra men det är en tydlig trend och en indikation på att marknaden accepterar det vi gör. Vi känner oss ganska taggade och stolta och det är en bra känsla med att det repeterar sig kvartal efter kvartal här. The result of the tax is somewhat lower in this period, nothing that we are specifically worried about. There is a reason. We have had increased costs for patents, patent registrations and also marketing. I will talk a little about it, but we have been participating in some congresses here during the first quarter and it has also cost a lot of money, so it is very natural for us. We have a good control of our costs and we feel safe with that. The revenues will come from the sale of instruments, but also from licensing and rental payments. It is important for us that every time we sell or rent an instrument, we also invoice annually in the coming years as long as we use our technology and instrument. a license fee or a lease agreement depending on how the agreement with this customer looks. And that makes us build a base for everything that was delivered last year, sold or rented out, there will be new income all the time and that base is important for us in our business model, it is what makes it so attractive for us. We base the result on this. FHV stands for business health care, it is still the largest source of income, but diabetes, which we focus a lot on now, we notice that it is growing and In the last quarter, about 30% of the company's revenue comes from diabetes. Finally, as I have said a few times, we have had and have a positive sales trend. We feel that we have a support. I'm not going to say that it's a storm that comes with us in the back, but it's a pretty nice soft breeze that makes us be able to lift this a few quarters in a row now. We are happy for that and we feel inspired by it too. I will start with diabetes. As I said, I have had a very good start on the new bill. I am aiming for this quarter, of course. Our goals, and I always have this with me, because I want all of you who have heard to hear it again, and those who are new to it, to hear it for the first time. We have a clear strategy. We are working on the markets we are working on, with establishing reference clinics, and what we call Key Opinion Leaders, KOL. In the next step, go out to a wider customer base. But the first step is important. It is often a university clinic or a clinic that we can use as an ambassador for us and our technology in the next stage. Talk to us and work with us on this market. It is important to get them here. It takes some time in the beginning, but it is well invested time and it is an important job for us to do. Vi har haft en bra kvart under första kvartalet. Normalt sett juli, augusti, september är inga fantastiska månader inom sjukvården vad det gäller försäljning. Jag har jobbat många år med sårläkning och oktopedi. Samma sak där så det är inte specifikt för oss. Men vi hade en bra sista kvartal, alltså sista månader innan sommaren, april, maj, juni. Vi har kunnat fortsätta rida på den vågen och faktiskt kunna kapitalisera på det vi gjorde under våren. and even in the summer for some part, so that we can have a little flying start here now in the fall and it feels really good. We have delivered new instruments during Q1, both in Sweden and abroad, but among other things to Skånes University Hospital here in Malmö. So as we were a little bit aware of earlier, we see that the number of license revenues and that is also rents, they are increasing successively and this is our, as I said, our base that is important for us and what we can ride on. We have also been able to look at some new prospects during the last few months, potential customers. We have exciting discussions with new clinics, both in Sweden and abroad, which we will see where it results in. Too early to say anything right now. We are trying to communicate in PM as often as we can. If we don't have a PM, we will write a newsletter, but we will tell you more about this in the fall. But very exciting. We have, as I said, been with two congresses and exhibitions. This is in line with our strategy. We have said this earlier in our part-time reports and also in our communiqué earlier this year, that we will invest more during this year of recognition in becoming more visible and more active at these types of meetings. It is important, because there we meet our existing customers, but we also meet new potential customers, so it is important for us to be visible. Neurodiab och EOSD träffade de kunderna vi vill göra både inom forskningsvärlden och även inom läkarkåren och den medicinska kliniska vården inom framförallt området diabetes men även neurologi så det är lite bredare. Neurodiab var en kongress och en utställning kopplad till detta som gick i Thessaloniki i slutet på september. EASD followed the week after, the first week in October in Hamburg. And a little lucky for us, Hamburg is in Germany. Germany is a market that we invest extra on, as some of you probably know. So that's why EASD was also very important. But both of these congresses have created new opportunities for us. And we have been able to get in touch with new potential customers, but also received inquiries from new markets. So we are very pleased with this participation that we have made in these two exhibitions. And we look forward to what can come now after Efter årsskiftet egentligen vad vi ska göra utomlands på liknande kongresser, fast inte just de här två specifikt. Vi har också en rustresurs i Tyskland, eller en person ska jag säga, det är den resursen jag refererar till, som vi har kontrakterat. We have launched a small start-up during the summer that we have talked about earlier, but we are now launching and looking for more contacts, customer clinics on the German market. And that's what we can say in this situation. But we have a lot of room for this and it is also a lead in our strategy. We are moving forward in Germany and Germany is still important to us now. We will invest a lot in Germany. As for China, which also has We are about to submit an application for regulatory approval in China. HAFs, Handle Vibrations Syndrome, is the core area we come from. I just want to be clear that even if we don't talk so much about HAFs or business health care or environmental medicine, this is still very important to us. We have a large customer, our largest individual customer, called Avonova Hälsa, who is a Swedish actor in business health care, one of the three largest actors on the market in Sweden. They have a large number of instruments and the collaboration is of course important for us. I have said this a few times now that we continue to develop positively. It may sound a little silly, but it really does. We will deepen the collaboration. It's not just about selling new instruments. We also discuss projects to get closer to each other and expand this collaboration, how we can help Avonova to strengthen the market. And thanks to Avonova and also the instruments that they have historically sold and used, our license and housing revenues are increasing as they were in the previous base in our sales. Vi fortsätter också att titta på möjligheter för att hitta ytterligare en stor partner. Och det är också någonting som vi har återkommit till. Och då tänker vi alltså, FHV är alltså företagshälsor, men vi tänker en partner i Norden, kanske framförallt Sverige. Det finns några stycken, om inte många, men som har samma dignitet och storlek som Avonova. Och det arbete som Avonova gör ute på marknaden, man är aktiva, man syns med vårt instrument, det gör ju också att vi får en del förfrågningar. Men detta är ett arbete som är långsiktigt. De här stora koncernen och organisationerna, de fattar inte beslut direkt. Men vi arbetar på detta och det är vår målsättning att hitta en partner inom just företagshälsovård i samma dignitet och storlek som Abonova. Det som inte står där, som jag ändå kan lägga till, det finns en mindre konstellation i Sverige som heter Riksnära Företagshälsa. Det är en fristående organisation, inköpsorganisation av So they are 44 small or medium-sized companies. And they have a collection twice a year that normally suppliers don't come to. But we were invited this year to come and tell more about our technology. So Tony was there about a month ago. I got to talk to a number of representatives from Riksantia företagshälsa around Sweden, present our technology, our instrument, and we had a number of interesting discussions immediately after the meeting that we were positive about, and we'll see what that leads to. But not only these big actors are important to us, but of course also the smaller companies. So we're not releasing company health care, but we're still focusing on diabetes. So during 2023-2024, Detta är en strategi som vi jobbar efter nu under det här räkenskapsåret. Det kan bli finjusteringar, men ni ska känna igen den här bilden. Vår målsättning är att skala upp vår märksamhet, öka omsättningen. Det är vårt absoluta fokus. I takt med detta också börja söka, som vi gör just nu i de nationella samarbetspartner på de marknader vi agerar, distribution and sales, so that not only we ourselves go out and sell this, but it is part of our business model. We do not work with creating and building our own sales core, but we find co-operative partners who take care of our sales and distribution, so that's where we are active right now. We focus on three geographical areas, the north, Germany and China, no secrets either, I have talked about it a lot. Vi fortsätter också vår utrullning av diabetes-puttskrivning i både Norden och Tyskland i dagsläget. Det arbetet vi gör är att bygga vidare etablerade referenskliniker och ge opinion leaders, alltså ambassadörer, för att när det sen går ner, det har vi påbörjat i arbetet till övriga kliniker för att attrahera nästa segment under de här tunga referensklinikerna. Och sist men inte minst vara aktiva på svenska internationella kongresser. De två exemplen jag nämnde här nu i september och oktober, där vi var med i två exempel på detta, And then last but not least, we are approaching a regulatory approval or an application for regulatory approval. And then, eventually, a prepared product launch in China. These are our four points that we strategically have our main priorities and our main focus on this year. We are today Jag återkommer gärna till den här bilden för att vi vill att den ska växa. Vi finns på den nordiska marknaden idag. Vi har vår största bas, men vi har börjat röra oss ut i Tyskland, som ni ser på den här bilden. Vi har ett antal referenskliniker som är viktiga för oss och som vi kan referera till när vi träffar nya kunder. Den här kartan ska bli ännu mer blå framåt, har vi tänkt, och det är det som vi jobbar hårt efter. Till sist, min sista slide idag. I'd like to sum up. The trend we've had for the last four years is now a quarter of a century. The trend is that sales are going up, successively. An increase of 45.5% compared to the previous year. A big percentage, less in the crown and the ear, but we're on the right track. There's growth in the business sector. We're getting confirmation from the market, which is important. Vi hoppas att under nästa kvartal kunna vara ännu mer positiva i det vi säger. Jag känner mig ganska grundad och jordar så jag vill inte överdriva någonstans, men vi har en medgång nu och den känns väldigt bra. Vi ser också möjligheter på export. Vi får det bekräftat när vi är på de internationella kongresserna. Precis som vi skriver i delårsrapporten, jag har inte sagt det nu idag, men på EASD så har man då de läkare som sitter i de här organisationerna, till exempel det som heter NeuroDiab, har möten på de här kongressen och där fick vi ett omnämnande av en av de tyngre läkarna inom diabetes som vi är väldigt stolta över och som betyder mycket för det gör också att vi kommer på kartan på ett annat sätt internationellt bland de som jobbar kliniskt med diabetesvård och det är viktigt för oss. Och sist men inte minst då, vi närmar oss då ansökan mot ett regulatoriskt godkännande i Kina, försäljningsdag 2024. So we are very strengthened by, I say this on this picture of the last two quarters, but actually, I was going to say the last five quarters, but specifically the last two, and see that the conditions and the trend will continue during this fiscal year 2023-2024, which extends to the end of June next year. That's my picture today, and what I was going to say. So now I and Tony are going to open up for some questions, if there are any.

Thank you, Hans. A good presentation as always. There is one thing I would like to add. It's about Neurodiav. I was there with my colleague. There is a trend in diabetes. It's not just Neurodiav. We see it all over Europe. It's what we call a one-stop-shop. And that means that diabetes care today has become aware that it is very important now to collect and do these studies that are done in different ways today. på en gång och behandla det precis som en provtagning rikets om så att innan läkaren överhuvudtaget träffar patienterna så har man gjort alla de här undersökningarna och där passar vårt instrument in utomordentligt bra. Så det är en stark trend och vi ser det här från flera aktörer och vi har faktiskt flera pågående förfrågningar kring just det här. Men okej, jag vet inte Hans, är det något du vill tillägga kring den biten?

No, it's a good summary, and that's how the big clinics work in Sweden as well. To be able to carry out these investigations together, at one time, to save time and move time from the doctors to the nurses, which is a cheaper resource, but that's the fact.

Today, many patients come to the hospital several times, and it costs resources both in the form of their own time, not to mention the administrative part, that you should call them and answer them.

I want to add one more thing, Tony. I don't know how interesting it really is, but I'm not going to dig into it too much. You talked about that one-stop shop. There are a few moments where you examine a person with diabetes routinely, at least once a year with several times a year. Eye-to-eye photographing, blood pressure, HbA1c measurement, and photo-research with our instrument. That's the kind of dialogue we want. It's very good in that scenario.

Exactly. Thank you. I have some questions from Daniel here. He asked two questions. How does Yumcare, our Chinese distributor on Havs and CPN, or those primarily interested in diabetes and nerve injuries? The business situation against the regulatory part in China is only about diabetes. We see that in a later stage we are working with I personally don't think so much about Havs because in China they have a large production sector there and there you have to be a little classy, they are not as afraid of their employees as we are in Sweden or Europe. En annan fråga från Daniel här också. Hur går CPE-studiet med Henrik Gren? Den flyter på för fullt. Den går numera i

Sorry, before you tell us, for those who don't know what it is. Yes, thank you. Tell us briefly what it is, because not everyone does it.

Yes, CEP, now you are a bit blinded here. It stands for cell-induced peripheral neuropathy. This is a very big and common problem, unfortunately, which means that when you are treated with cancer, with cells, you risk getting brain injuries, existing brain injuries. In some cases, the growth of the tumour is prevented, but with the fact that there has been a significant increase in treatment of cell diseases, there are many patients who, after completion of treatment, have existing problems, and these are life-long problems. Therefore, it is about, and this can be done with the help of our instrument, to adjust the dosage of cell diseases so that you do not get these damage. To get back to Henrik Rehn, he is a professor in Linköping who is doing a multidisciplinary study. Right now, a part of this is happening in Jönköping. It is a study on breast cancer. He is working on it. I am not fully updated, but if I am not mistaken, phase 1 will be closed during the spring next year. Then I see another question here. Maybe you can take it, Hans. It says this. In the last quarter's presentation, you talked about possible violations in Sweden when it comes to upcoming recommendations for regional investigation.

Do you have anything more to say about that? Violations is a subjective term, that's why I laugh. As I said before, I try to be grounded. Vi gillar inte att överdriva våra insatser, men vi säger så här. Vi levererade ett instrument, och det är bara ett instrument, ska jag vara ödmjuk att säga, till Sofiahemmet. Det är en privat klinik här i Sverige, men Sofiahemmet är en, om man nu får uttrycka sig lite flagrant, en högsvansad, men en väldigt bra klinik i Sverige som man gärna vill komma in på. Det var samma när jag jobbade med optopedi, så vill man gärna vara på Sofiahemmet. It is an incredibly good point of reference. It is a private actor. They differ in their actions from public health. But also, they are not a single clinic. There are a lot of private actors under the umbrella called Sofia Hemmet. We have discussions with a few more units that will test our instrument. It is one of them. But it is a breakthrough, we can say, Sofia Hemmet. It could have been a different outbreak that day. Now we have worked with, as many of you know, a collaboration with two heavy clinics in Sweden, two university clinics, and one of them officially says that now we introduce this in healthcare as a standard. That would have been an outbreak. It is a process that we do not really advise. Even if they use our instrument, we are careful to go out and say that before we have that assumption. They also have to verify themselves and build a database with patients and so on. We are right on the private side. There will be more. I am completely convinced. Unfortunately, we can't talk about all the breakdowns. We have done good business during the quarter. Now you laugh, Tony, but I'm not going to say what we did. There are customers that we can't talk about for security reasons. It would have been very nice and good to be able to do that, but it's not always like that. Another breakthrough that I see is that day, and what we are working hard on now, is when we can contract someone who wants to distribute our products, because then we get more feet on the ground in Sweden. And that's why it's important for us. And it's not just Sweden, it's the other Nordic countries as well. I think another breakthrough could be if we get into another market in the Nordic countries where we don't exist. in terms of sales. We'll see what this leads to in the upcoming months of this year. More to come, I hope.

You'll soon be able to develop this, because we have another question about this topic.

I've balanced this, being a private company, I won't say too much.

But there's another question I wanted to ask. It's about, it says here, the test report from China is slow. Is there a reason to worry? No, I wouldn't say that. It's not the test report that is delaying, because the test report exists. It is signed and ready. I work a lot with this. Among other things, we are now preparing the application for NMP, so it's not the tests that are delaying, but the application itself. We have received a package of documents signed by notarius publicus, after which they will be sent to NMPI. When it comes to the tests, there is no danger at all. If you are wondering why it has taken some time, The product in China will be classified as a class 2 product, while in Sweden and Europe it is classified as a class 1 product. All the tests required to make a class 2 product are done. The test report is available and it is done. But it will be part of the application to China. I have another question for you, Hans. Can you tell us about the inquiries we've received from new markets after the congresses? Which markets are we talking about, and are they distributors or end customers?

I'll start from the back. Distributors or end customers? Both. I can mention that because it looks like It's not even speculative. Getting a question means nothing. We often get it via e-mail, the interest for the question. And it's not always, to be honest, it doesn't lead anywhere. But some can be hotter. But we've had, at EASD Hamburg, we've had a lot of exciting contacts. Some distributors from markets in Europe. Some... And it's always these long... Markets that are far away. I'm talking about Asia, the Middle East, but also a certain part of the USA. They have some kind of over-representation at many of these congresses. We got a lot of interest from both the Middle East and Asia. Some markets feel that it's a bit too expensive to put down early energy, but we're still in a dialogue. Just a few weeks after this congress, it's hard to say if this will lead to anything. Det är väldigt uppriktigt här nu. Vi kan göra det, men det kan lika gärna rena ut i sanden. I don't know if you want to add anything, Tony, you were with me down there.

Yes, shall we speculate a bit? It's clear that we can test new markets and so on, but there is actually another thing we forget about. There are quite a few countries in Europe, so my personal guess would be that there are another one or two countries in Europe that we will invest in first. There we have everything clear with C-marking and such, so to enter a completely new market will require a part when it comes to regulatory approval.

As you have heard, we have three areas of focus. We have the Nordic countries, we have Germany, and we have finished the work that you asked about. How far have we come? It's never an issue in China. These three areas are our priorities now. And that's important. That said, it doesn't mean that we don't look at anything else. We value the questions, the opportunities that we create, and the questions that come from what we create. every time. I wouldn't be surprised if we ended up outside this area, just like Tony mentioned, maybe in Europe, before this fiscal year has ended. And of course we will report that as well, but that's not what we're running after all the time. But do we see a business opportunity? Of course we should take it. And we have a product that is registered in the EU market, so the whole EU can take this product. It's not a huge effort to sell instruments on other markets. So of course we are open to that.

The question was about distributors. I think I answered some of it, but when it comes to Europe, we've come so far that it can be interesting to try to find a distributor that takes this up. We don't need to prove the benefits of the product, we know where it is. I have another question. Johan Engström asks, Is Håkan Pettersson on the way to buy some shares or is he not yet? I can say that Håkan Pettersson is our new board chairman. And whether he is on the way to buy shares or not, I can't actually answer that. It's not like the board chairman in Bergen-Belsen wants to buy shares, but it's his private economy and I can't comment on that. Hans, do you have anything more?

No. If there are more questions, please answer them. I can talk for as long as I want, but we have respect for those who are listening.

I see that the time is 10.31. We are trying to keep up with the time. If there is nothing else, I suggest that we close here. The presentation will be posted on YouTube later today, if I'm not mistaken. For those of you who were watching, you saw that I started recording a bit late. It will probably be a bit of a mess, but still good enough. With those words, I would like to thank you for your interest. I hope you will continue to follow us.

Thank you all. If you have any further questions, Send us an email and we'll answer that way instead.

Goodbye.

Thank you very much.