VibroSense Dynamics AB

And a warm welcome to today's presentation of Arbicens Dynamics Part 1, which will be published this morning. The company has been in business for a year, which means that we are running from the 1st of July to the 30th of June. And today's report covers the 1st of July to the 30th of September this year. My name is Tony Speidel. I am CTO and also a member of the company. And today I also have with me our new CEO, Tarek Cengiz, who will present the report. And with those words, I'll hand it over to Tarek, please.

Hi, my name is Tarek Cengiz and I'm the CEO of Vipersense Dynamics. I'm the new CEO and have been here since September 16th, 2004. Before I start the part-time report, I'm going to make a presentation about myself. I'm a student at Röntgensjuksköterska and have a master's degree in nuclear medicine. I've worked at a clinic and then decided to work in the industry. And so I have done the last 11 years. I started my career at a pharmaceutical company called Manicure Pharmaceuticals. And then I have continued to work at GE Healthcare and then at smaller and medium-sized Swedish companies. I have finally worked with OEMs and distributors for the last five years globally, both in Europe, the Middle East, the USA, Canada and Asia. And I'm super excited and very happy to be a part of Vipersense Dynamics and look forward to my time here at Vipersense Dynamics. With that said, I would like to go in and start presenting part of the Q1 report. I would like to welcome everyone to this presentation. If we look at the total revenue, we had a net revenue of about SEK 430,000 and a revenue of SEK minus SEK 1.2 million. We had a lower revenue in Q1 compared to the previous year during the same period, and this loss of revenue is largely explained by the fact that we simply had lower activity during the first quarter, and we also had reduced sales and outsourcing. Our moving costs have dropped by about 22%. This is due to the fact that we have had lower patent and marketing costs compared to the previous year. During the first quarter, we have continued to work with regulatory approvals in China. A dialogue is being held between our partner UN Care and NMPA. Vi har tidigare kommunicerat ut att vi har ett preliminärt godkännande under april 2025. Vi har också själva täta dialoger och återkommande möten med UMP för att följa den här regulatoriska godkännandeprocessen på nära håll. Under första kvartalet så har vi också fått en intention to grant vad gäller patentansökan i EU som avser hudtemperaturmätning trådlöst före och under en undersökning. Kanske inte under första kvartalet men precis därefter så har vi också kommunicerat ut att utvärdering av Vibrosense Mitri 2 på Diabeteskliniken vid Sten & Diabetescenter Odense i Danmark. It is done and they have decided not to implement Vibrosense Mynt 2 anymore. A short comment regarding this evaluation is that they have evaluated our equipment, our method and compared it to the methods that the clinic uses today. Vibrosense has not been a part of this evaluation but we have received the results of this evaluation and when we We have had a dialogue and pointed out that the comparison method used by the clinic may not have been done in a correct way. We have had a dialogue with the diabetes clinic and pointed out that there have been errors in the comparison method. In summary, we can say that the evaluation that the clinic has done absolutely does not show in any way the performance of Vagrasense Mitre 2 and how it can be used and implemented in the clinical workflow. It has been educational for us as well, of course, that we have learned that when we prepare this type of and when the clinic starts, we will have a protocol that describes the comparisons and how it should be done and which methods should be used. As I said, we measure in different ways and we show different results and then it is important to compare apple to apple so that there are no wrong results at the end. As you also know, Vibrosense Meter has a broad use area. We have three segments that we work in today. It is its hand-to-hand vibration syndrome, diabetes and oncology. In HAVS, we will continue to work to establish new customers, company health care, with direct distribution as we have done before. We will also investigate the opportunities in the UK, where we know that The regulatory aspect of HAVS and how you work with HAVS in the UK can be very different from the other European countries. And you take this very seriously in the UK. So we are also investigating the possibilities and the market in the UK. As for diabetes and diabetes caused by neuropathy, nerve damage in the feet, we have a market transition. We are looking at to find OEM manufacturers and distributors to expand within this segment. We have ongoing projects, both in Germany and the UK, with clinics. We will also participate in Diabetes Hälftagång in Hannover in November. where we will be exhibitors, meeting researchers, clinicians and other companies that are active in diabetes. We will also be at the World Diabetes Talk in Malmö, where our CTO and R&D manager Toni will present the use of our equipment in diabetes neuropathy. We will also host the World Diabetes Day in Malmö, where participants will also be able to get a demonstration and a presentation of the equipment and be able to test it. Oncology is a very large area, and we know that cell poison-inducing nerve damage is a very well-known problem. Vi har ett pågande projekt just inom detta med sjukhus inom CIPN, alltså cellgiftsinducerade nervskador, där vi försöker titta på det kliniska arbetsflödet, hur undersökningen både som en baseline innan man börjar få cellgifter och under pågående behandling. För så som det är idag vad gäller cellgifter så får ju patienter It is well known that patients get nerve injuries and suffer from it, but it is very subjective today. So the clinics need more objective and quantitative data to see how they are affected by measuring this. And in this way, maybe adjust the dosage according to the advocate's treatment of cancer. Vi söker också samarbetspartners inom industrin, just inom CIP, där vi vet att det finns företag som arbetar aktivt för att antingen behandla eller förebygga just PFR-närvslådor vid säljsbehandlingar. So we will work in parallel with these three segments. In certain periods of time, we may focus on one segment more than the other, but we will be active and we will not leave any segment unattended. Our business model, which we have also previously communicated, we want to grow through partnerships, we want to grow through OEM manufacturers and distributors. We really want to find these manufacturers and distributors who have the relations, the network and the product portfolio within the same segment as we have. So the commercial focus will be strong. We have also changed our pricing model so that it will be more attractive for end customers. There will also be an adjustment to the distributors when we start to find partners in diabetes or cancer or oncology and find partners as distributors or OEM manufacturers. We also want them to be able to be flexible with the prices when it comes to purchases and equipment. We also have a research that takes place to look at the market, to look at the geographical expansion. We are MDR class 1, so we also want to look at the countries and look at the markets we can today. börja marknadsföra och sälja vår produkt och se vilka länder och vilka regioner vi har den största lönsamheten. Before the preparations for the market in China, the regulatory process is underway. In parallel with this, we also want to start working and preparing for the market and sales in China. This is something that we will work on in parallel with UMCare. with their marketing plan to start these preparations. Because when the regulatory approval in China is complete, we want to start the sales and marketing process immediately afterwards. And with that said, I would like to say thank you and move on to questions and thoughts that you have.

Thank you, Tarik. That was short and concise. Good. We are now ready to ask questions. There is a chat icon down below that you can type in. Let's see if we have received any questions. Here comes a question. I see it here. Thank you. Can you maybe answer it? What do you think about the latest article published about vibration damage on construction workers?

Ja, detta är ett välkänt problem inom byggnads som tyvärr inte har uppmärksammas tidigare trots våra ansträngningar inom ämnet. Vi har tidigare varit i kontakt med byggnads och vi har varit i kontakt med deras företrädare och vi har försökt föra en dialog med just byggnads just om vibration damage and inform us about how we can really make a difference to find and detect these injuries in an early stage so that we can come up with preventive measures so that we can prevent this. So we are not at all surprised. We want, of course, to have a dialogue, continue to have a dialogue with the building to enlighten them about Vårt instrument kan göra en skillnad för att upptäcka detta i tidigt skede. För vi vet att när de väl får skadan så är det irreversibelt. Att det går inte tillbaka. Så det är viktigt att titta på detta i tidigt skede.

This is also related to what the regulation looks like and the guidelines that exist today. The guidelines that have been issued today are based on diagnosing an established nerve injury. But then it is too late. And the whole idea with our tool in this context is that you should find changes before it goes too far and thus prevent it. So that we can work both with the trade unions, companies, social welfare, but also with those who write these articles. Yes, more questions? I have another question here, Tarik. In what way do you change your orientation in sales?

As I mentioned in my presentation, we will focus on distribution, distributors and OEM partners. We have enough installations and end customers and we will focus on increasing the volumes instead. To increase the volumes, we need to focus on finding these distributors with the network, relations and installed base to reach as many end customers as possible. There will be a lot of focus on OEMs and distributors.

Thank you. Another interesting question. What was the method that Steno compared VCM2 with? Can you go into more detail on what the evaluation showed?

The method that Stena is comparing with is the methods that are available today to do this type of foot examination or foot screening, which is either monofilament or biopsy. And we know that these methods are very operator-dependent. These methods are not at all sensitive and discover diabetes neuropathy very late. Each equipment measures in different ways. We show different parameters. That is why I mentioned that when you do this type of comparison and set up a protocol for comparison methods, it is important to compare apples to apples and not apples to apples. It will be strange in the end when you look at the outcome. These are very old methods that they have compared. I can't go into much more technical detail, maybe that's not the purpose either, but we can say that this is a method that we have known about before. And as I said, we have taken a lesson from this and we will put up a protocol for the next comparison that will come out of this type of technique.

Yes, it is a little pedagogical challenge. When you compare our instrument with a biotestometer, in some cases our instrument will say that something is going on, while the biotestometer will say that nothing is wrong. The biotestometer can say that something is going on, but our instrument shows that it is okay. And all of this is due to the fact that in our instrument we have an automatic compensation for age and gender, and that is a very important factor. So while the healthcare system shouts for new methods and complains that existing methods are not good enough, they haven't really understood that you can't compare directly. But it is our pedagogical challenge to tell them, and for us to be able to do that, then we have to be more participatory when they do this evaluation. Unfortunately, we didn't get the opportunity to be here, even though we really tried. Okay, I have another question in the field here. Are Danes open for a new evaluation? after you claimed that they don't compare apples to apples. You are the one who had the contact, what do you say?

Yes, that's right. And they haven't decided not to make a new evaluation. They have only claimed that the evaluation has been made clear and ready. But they haven't closed their ears and said that they don't want to make a new evaluation. or a new evaluation. So we will of course have a dialogue and discuss with Odense in the future.

Yes, the last word is not said there. I have another question here, Tarek. You have your own experience of driving sales via partners and distributors. Have you done well before?

I don't know if I can be objective with that question, but we can look at the objective. I come from Alkoma, which is a stock market company. I started in December 2021 and ended in September. It's very easy to go in and look at the sales and how it has increased and how the share value has been affected by the sales. As I said, I have worked globally with both OEM partners and distributors. I can just give an example that I have worked with GHLK, Canon Medical Systems, Canon Konica Minolta, I have worked both in EMEA, Mellanöstern, Southeast Asia, and USA and Canada. Personally, I think it has been good, but as I said, I don't know how objective I can be in that question.

Yes, I can say that it was a part of when we sought the direction here, and then we saw how good Tarek had succeeded, so it was an important factor in the whole context. One thing to mention is that OEM stands for Original Equipment Manufacturing. It is a bit different compared to distributors. What does this mean?

Yes, as an OEM manufacturer, we can say that it is a manufacturer for the first place. What distinguishes an OEM from a distributor is that an OEM has its own manufacturing and products. That is the biggest difference, while a distributor takes in and sell it further in the market. So OEMs usually have their own manufacturing and in some cases they choose to import other products and sell it in their own brand. So they put their own brand name and their own brand on it. While distributors sell it in the company or OEMs or the supplier's own brand. So there are two different ways to sell, there are two different agreements and there are two different ways to market the product.

Yes, you can say that it is a way for a manufacturer to expand their product portfolio without having to develop everything from the beginning. So you simply put your name on it and then you certainly make some adjustments and so on so that you get their plan in there as well. Okay, we have another question here. How is it going with your investment in Germany?

And when can we expect more sales? We have a local consultant who is in place in Germany, who works on the German market and not only end customers, but also look at what we are talking about, OM and distributors. We also work with other consultants in Germany. We will enter this congress in the middle of November. where we will meet researchers, clinicians and other companies that are engaged in diabetes. So there is an initiative in Germany and we follow it very closely.

Thank you for that. Let's see, there are many questions here. Do you plan to hire people and in which functions?

Yes, we did. We actually released an announcement last week that we will hire a product specialist who will help us both when it comes to the direct distribution but also the indirect distribution via OEM and distributors. We also work a lot with training, to train both existing customers and new customers that we will introduce. So that's the announcement that was released last week.

Another question, it goes back to the OEM issue. So the idea is that VCM2 will be a white label product within OEM. Do you see any advantages with this from a brand perspective?

Yes, of course. You can think that it can be a disadvantage because you are not marketing your own brand. But I would like to say that there are both advantages and disadvantages. The advantages can be very big because an OEM manufacturer often has an existing sales force and has a large geographical area that makes the volumes very high. There are OEM manufacturers and big companies that choose to sell their own brands to other companies under white label. I would like to say that in the current situation, I don't see any advantage for Vibrations Dynamics.

No, besides that we have no plans to close down Warburgsens Mite 2. It is our brand and it is protected and so on. So we will sell it in parallel. But it may be that in some markets the OM customer will be affected. But I leave these business pieces with Warburgsens Mite 2. It will surely fix that. Good. Any more questions here? When will you start selling your product to China?

Yes, as I said earlier, we expect a preliminary approval in April 2025. As soon as we have our regulatory approval in China, we will start marketing and social activities. And as I mentioned earlier, we will work in parallel with this under the regulatory approval process to prepare ourselves for approval, so that we are ready to start as soon as we have approval from the NMPA.

Yes, something else came in here now. Do you have any sales goals for other markets, i.e. excluding China and UN CARE?

As I mentioned before, we're looking at... We're looking at... It's actually the regulatory approval that we have. If we can sell our products, we'll look at making a market transition. So it's mainly EU, but we know that we can use EMDR in other EU countries with representatives. So we'll look at all markets where we can sell our product under the certification we have.

Yes, and you can also say that even if you carry a very important business for a certain time, it will probably require a lot of attention from our side. But at the same time, there are many other parallel activities that occur, especially with focus on Europa. So I'm pretty hopeful for these pieces. The question is if we will be able to handle everything, if all your balls fall into the tarp. Well, let's see if there's anything else coming in. Just a few more seconds and then I'll close the seminar. One last question, then we'll close. You came with financial goals in connection with an earlier emission. Will you release new goals? Because it's not about continuing to be. The question is, as I interpreted it, the goals we set before are not relevant now. That's the question. What do we say about that, Tarek?

Ja, jag känner inte till de tidigare finansiella målen man har satt innan emissionen. Om jag ska vara alldeles inne i läget så får vi väl kolla upp det. Men mina mål just nu det är starkt kommersiellt fokus. Vi kommer satsa, vi kommer inte släppa några nya mål utan vi kommer satsa på starkt på det kommersiella. Vi kommer leta efter OM, distributörer, jobba på det, öka volymerna och öka omsättningen. Det kommer vara vårt främsta fokus.

Jamen, okej. Men då har vi väl Tack så mycket! Hej då!