VibroSense Dynamics AB

Thank you so much and welcome to this presentation of the third part of our year of accounts. I will comment on the report in the third quarter. I will also say something about the previous emission that we started last Friday. I will also say something about the remaining part of the year of accounts, 23-24. Now it is just one quarter left, so this will be the beginning of the rest of the year. As usual, I have two slides that we always say about the ones that may not have heard this before. The clinical problem we are addressing is called peripheral neuropathy. It is about nerve damage in hands and feet. We work in three areas, diabetes, vibration damage caused by vibrating tools. We have a number of research collaborations within oncology. We like to talk about that as our future area, our pipeline. Many people are affected by peripheral neuropathy and many people in the risk zone. The problem is that those affected suffer a lot because nerve damage is discovered late. This is because there are insufficient and unspecified clinical methods to diagnose this type of damage. It is not only Sweden that is affected, but also abroad. There is a need for more precise and better analysis methods to diagnose peripheral neuropathy. This has been identified much earlier than today. Our solution to this is a technology that we have developed ourselves. It is a Swedish product, multi-frequency vibration. We do a touch test on the skin to identify and follow up peripheral neuropathy in hands and feet. We look at the period from 1940 to 31st of March and accumulated during our financial years. We landed .8% lower than the corresponding period the previous year. The headline on this slide, a quarter with expectations and more, says the best of what we think. We are not happy with this. Before this period ended, we could increase our turnover by six quarters in a row. It is a bit of a jack in the box, but we see it as a bump in the road. But nothing to worry about in the long run. We have accumulated net turnover during the accounting year, which is .8% better than the corresponding period. We have continued to control our finances at the company's expense. We still get the profits from the distribution of the instrument we work with, but also profits from the running license and rental agreements. Just as it has been during the three or four quarters, the profits come in from work and environmental medicine, vibration damage in that area, but gradually increase in the area where we invest most, diabetes. About 35% of the profits come from the area's diabetes, but it is increasing. That is what we have predicted, but it will happen in a much faster pace. A summary of the quarter, diabetes. I have been with you before, when you remind everyone about the strategy we are working on. First, establish reference clinics in a new market or country. There are key opinion leaders, which look like KOL. The people who are the key are in diabetes, which other doctors look at, both nationally and internationally. It is important for us to get them to work, so that they become our reference persons and reference clinics. In short, our ambassadors in one or more markets. We are working to find a wider customer base and increase the use and distribution of our product. During the quarter, we have also been forced to submit completions to our regulatory application for distribution in China. This makes the time for approval extended. We are waiting for an approval that we still believe is strong before the end of the year, in December 2024. I assume that there is one or two questions about this, and we will follow this up at the end, just as Tony was saying. I would like to say that this is nothing strange in a regulatory process. What has happened, what I have worked on for over 20 years now with medicine technology, when you are looking for a product, for example with a German actor, which is a regulatory body called TÜV in Germany, which many probably know, that you get approval of the completed application material is nothing strange. Unfortunately, this is simply the time, but we still strongly believe in this optimistic that this will go through, no doubt from the road company side at all. The second point is the Stone and Diabetes Center Odense. I do not know how many of you know the Stone and Diabetes Center, but two of them, first and foremost. It is one of the highest ranked clinics in Europe. They are located in Denmark, in seven different places. Odense is currently working on a collaboration, they evaluate our product. We have written an agreement that lasts six months. Their intention is to introduce this clinically in their business after the final evaluation. They are located in Denmark, and this can be very exciting for us, if we think we want to. We have worked long on the Stone and Diabetes Center, it has not come by accident or by coincidence. This is the result of a long process, where we have had contact with the Stone and Diabetes Center before we have reached it. We also, according to the strategy we have, are going out to new markets, we have to expand our sales to increase the sales. We were with a congress in early March in Florence, it is called ATTD, and it is a small tech fair for new technology in the area, specifically in the area of diabetes. We have had many visitors from the US, we do not have any ongoing activity in the US market, or not even a registration process, but a great interest from many countries in Europe, and also from the Middle East. We have a number of leads that we are currently working on, both from end customers and potential distributors. This often takes some time, and we have been actively working on this since we came home from the congress in the middle of March. It is very exciting what we have in the pipeline regarding ATTD. Last week we were at the opposite congress in Västerås, maybe not as exciting as in Florence, but a very good meeting. It is a diabetes doctor in Sweden, and those who are in charge. About four hundred participants in that congress, I was there myself, and now we are starting a follow-up work right here during the day with the contacts we have created. There is interest from primary care, some care centers, but also the clinical care in hospitals. Hopefully small and small, even from that congress. A few words about Vibration damage, and we are raising this so that no one will think that we have forgotten our roots, and where we come from, where we have the largest sales. We have been working for a month now with a market activity that is aimed at Swedish health care, where we work with both email and email, and also phone follow-up. We are an external company to get new contacts and spread within the health care of companies, so we are in the middle of this right now. And also in the UK, for those who have been listening earlier, you may remember that we have registered the product at the end of last year in the UK. This in itself means that we have generated an opportunity and we want to investigate where this can possibly take us within the health care of companies in the UK, now that we have a product that is actually cleared and ready to go and sell. We have done a basic work during the last one or two months here. There are a number of contacts and we have also found a medical congress that is not only connected to the UK, but also to the Irish market and health care of companies in this area with actors within these segments. We will participate in this in the middle of June, and it will be very exciting, because we believe that it can open new opportunities. We are working on the health care of companies, and it is absolutely not a area that is sleeping, but we are also doing activities there. Our focus is on the rest of 2024, and I will not only note the year of calculation, but also the year of the last June. We have continued three geographical areas with priority. The north, as we have said, has opened up a bit in Denmark thanks to the stones here, exciting. We have continued to work in German activities, and we are working with our registration, which will be very exciting. When we get it, we will be able to deliver it to China immediately. We are also working towards a scaling up and increased turnover. We are also looking at a broader establishment on the flea markets than these three geographical areas that have priority. We are actively looking for and will be even more actively trying to find national partners to sell and distribute our product. That is what we have said all the time. We have come to a point where we have a number of clinics in Sweden now. Among other things, the Paro Clinic in Sofia, a private company in Stockholm, and also the Diabetes Response in Lund. This makes us stand stronger and can be more interesting for partners to sell and distribute our product. We have continued activities within the company Health and Care, and also Diabetes Response in the north and Germany, of course. Last but not least, regulatory approvals and prepared product launch in China. This is also important. Now we are starting to have a dialogue with our partner UMcare, which is more about sales activities. What kind of material are we going to supply to sell our product? It will be a very exciting phase that we are on our way to now. As you probably know, we launched a pre-sale emission, as I mentioned earlier, on Friday last week. We have a drawing period between the 19th of April and the 65th. We offer a unit that consists of a B-share and an option that is attached to that share. We have a technical source of 150, and with the full drawing we can get a maximum of 26.1 million for the emission costs. In addition to the option, there is another option for almost 40 million kronor through the additional option, and the solution of that share in May 2025. If someone is wondering how we are going to use this liquid, we will work against increasing sales. Almost 70% goes to sales and marketing, especially in diabetes, but also part of oncology and Havs. We have chosen a strategic approach, with regard to priorities, that we will keep the company's activity for faster expansion. Both, as I said earlier, a broader approach to export, focusing on finding partners on new markets, but also strengthening ourselves internally, resource-wise, within the area of sales. Otherwise, it will be difficult to increase sales. So this is in focus for us, as regards the liquid from the emissions. I just want to remind you again, that we have a large number of customers who use this product, so we are in an exciting situation. We have talked about the year of the crime, in 2024, and we still believe in this. The countries where we have established so far are the ones you see on the map, but as I said, we also look outside, because these areas will become even harder in the fall. A few words at the end. Secure financing, decisive step for expanding, and that is the answer to why we choose to carry out a pre-emission or a new one, in this situation. We continue to increase the company's turnover, but we must grow faster. Thank you, that is in total focus for us. And the coming capital outflow, or our opportunities to expand faster, but also to invest in the way we want to do, in order to grow faster. We have not talked about it, but there are, in addition to the congresses I have mentioned here in AT&T, where you are coming back every year, but there is also an opportunity in the Middle East, but then it is required that we take our lives out on what is called Arab Health, which is going on every year in Dubai, and so on, there is a way in, both when it comes to end users, customers, but also distributors to the Middle East and the markets around. So a broader investment in exports, we strengthen the resources in sales, and of course a lot of focus on ensuring regulatory assets in China and able to start sales. This was my presentation today. With that Tony, I do not know if there are any questions.

Yes, thank you so much Hans, good presentation as usual. We can start with the message that it is good to ask questions, and there are actually two options here. There is a small icon at the bottom of the screen, called Q&A, Questions and Answers, where you can write in your questions, or you can use the chat, there is also a chat icon, so that's what you can choose yourself. Let's see, I have not come to any questions yet, but I can comment a little about the regulatory processes in China. It is very important, as Hans says, that you can never know in advance what will happen, what will be the questions. At the same time, the process in China has been delayed due to Covid, so the test institute that has tested the product, they will be running late again. But we had the hope that we could get through this time, but it has turned out that when the last step comes in, when we will get the screening of their Chinese authorities, they also have a long time, so that's what happened. But as it is now, we really expect that we will have this done in December. So the next point, it can be important to know, the next point is what we are waiting for now in June, then we will get what is called Supplementary Notice, that is, a statement from NNPA, where they either say that fine, that's good, we will continue with the certificate, or they will be given conclusive tasks. And if you want to be realistic here, we count with that they will be given conclusive tasks. After that we have actually 12 months, but the plan is that we will be able to answer within three months, because we will see the final three months later, we will be able to get this certificate from NNPA. So there are the steps we have. I will say something,

Tony, just to make it clear, it may be obvious, but I don't think it is misunderstood. If we were to get more questions, as you say, it would not mean an extension after December, right? No,

it has to do with them. I have a dialogue all the time with Juncare and what they think will happen, and they think they have a little idea of what they think NNPA will ask questions, and we have already started to prepare to be able to answer that soon.

So the type of questions we have communicated, have we also taken a step forward, because that is what we are saying?

Absolutely, absolutely. Of course, one should not speculate, but if we are lucky, we will say that we have seen the certificate in June, but I don't think so, it would be too optimistic. Now I have received a question from Erik Lundberg, he writes that Hans mentioned that you have a lead on a distributor, can you say anything more about this, which or which market? No,

we can't. It is the simplest answer, we can't do that. We have said it before in both press reports and the Qantas reports, that we want to go out there, except for these three priority markets that we are working with today, nothing strange with that. ATTD that we were involved in in Florence, it moves from different countries, and we have had it on the radar for a few years now, and I say now it is really time, because this is one of the possibilities to get in touch with potential distributors. We have had a number of people interested in dialogue, but everyone who works with business knows that to have a dialogue can lead to something positive, but it can also stop, so I can't say anything about it, because it is too premature, the discussions we have with these potential distributors.

Yes, that is what it is, it is Leeds, and we don't want to go out and say names, name dropping and so on, it is a question of negotiation, but also if there is nothing, then we have opened up something that...

If I may be, I mentioned that with Odense too, we have worked with Odense, I don't remember exactly how long we have had the dialogue about it, but for a long period, and we choose not to, the dialogue itself is nothing that says that it is a business activity, but first when we have some kind of concrete collaboration that we can communicate something about it, just as we have done with Odense, but this is normal operational activity, that we have all the time discussions with potential customers, new or potential partners in the country, so that is where we are.

There is another interesting aspect with this with Odense, and that is that now many people are talking about it, and it is at high levels here, they talk about how to put together a way to deal with the patients with diabetes, especially with the foot problems, so they are mending this term called one stop shock, and it is among other things that Odense is trying to implement, and it is not class, it means that what you want is that patients should come to the hospital and have a complete entrance, and then you should do all the examinations, and then it will go fast, and then you will be able to meet the doctor, thereby saving the patients time, but also their own administrative time at the hospital, so that is something that Odense is working on, and it is also the same concept that the endocrinologist in Lund is trying to implement. Thank you very much.