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iZafe Group Q1 Interim Report, January-March 2023

STOCKHOLM, SE / ACCESSWIRE / May 12, 2023 / iZafe Group (STO:IZAFE-B.ST) iZafe Group AB (publ.) presents today, May 12, its report for the first quarter.

Financial Performance in Summary

  • The net revenue for the quarter amounted to 228 (376) TSEK. The revenue for the quarter consists of income related to sales of the digital pharmaceutical robot Dosell and sales of the medical device Pilloxa. Pilloxa AB was acquired on November 28, 2022 and therefore is not included in the revenue for the same quarter of the previous year.

  • The operating profit for the quarter amounted to -5,051 (-6,984) TSEK.

  • The profit after financial items for the quarter amounted to -5,187 (-7,032) TSEK.

  • The cash flow for the period amounted to 13,827 (-6,987) TSEK. The cash flow for the period includes a rights issue which raised approximately 18.6 MSEK for the company after issuance costs.

  • Earnings per share for the quarter before/after dilution amounted to 0.0 (-0.1) SEK.

  • The equity per share at the end of the period amounted to 0.2 (0.5) SEK.

  • The equity ratio at the end of the period amounted to 84.1 (80.8) percent.

Significant Events during the Quarter

  • iZafe has signed an exclusive partnership agreement with IVE Ventures for the right to exclusively sell and market the Dosell medication robot in the Netherlands. IVE has committed to purchasing at least 1,000 Dosell units annually for a three-year period to maintain exclusivity. The total value of hardware and license revenue amounts to approximately SEK 16 million during the first three years, followed by a recurring license revenue of at least SEK 6 million annually.

  • iZafe has signed an exclusive partnership agreement with UK-based Targeted Outcomes for the right to sell and market the Dosell medication robot in the UK for five years. Targeted Outcomes' minimum commitment over a five-year period amounts to SEK 18.7 million, followed by a recurring license revenue of at least SEK 7.9 million annually.

  • iZafe's subsidiary Pilloxa has signed a collaboration agreement with Chiesi in Germany worth SEK 1 million. The goal of the initiative is to give patients the opportunity to take control of their treatment journey and improve their quality of life. Pilloxa's app allows patients to track and record their medication and symptoms, set reminders, and generate reports to share with healthcare providers.

  • In March, iZafe announced the utilization of series TO13B subscription options, which were issued during the fourth quarter of 2022. A total of 96,805,841 series TO13B subscription options, equivalent to approximately 81.7 percent of outstanding series TO13B subscription options, were utilized to subscribe for 96,805,841 B shares at a subscription price of SEK 0.20 per B share. Through the utilization of the series TO13B subscription options, iZafe Group is adding approximately SEK 19.4 million before issuance costs.

Significant events after the end of the quarter.

  • iZafe has signed a cooperation agreement with Spanish company Ti-Medi for the rights to sell and market the medication robot Dosell. Ti-Medi's minimum commitment over a four-year period is worth at least 12 million SEK.

  • iZafe has signed a cooperation agreement with MDM Pulse for the right to sell and market the medication robot Dosell in Portugal. MDM Pulse's minimum commitment over a five-year period amounts to 12.2 million SEK, and thereafter generates a recurring license revenue of at least 4.2 million SEK annually.

Comments from CEO
I am pleased to present a quarterly report where we can show that we have further strengthened our positions and streamlined the organization within iZafe Group.
During the last quarter, we have worked hard to integrate Pilloxa into the organization, and I am proud to announce that we have retained Helena Rönnqvist, who was previously the CEO of Pilloxa, and appointed her as the company's Chief Medical Officer and Business Unit Manager for Pilloxa. At the same time, we have ended the employment of other personnel since we have been able to include their tasks into the existing personnel in iZafe Group. Therefore, we have paid out the remaining salaries, repaid loans, and debts that were in Pilloxa. At the same time, we have managed to reduce our costs, which will be even more evident in the upcoming quarter when the entire iZafe group, including Pilloxa, has scaled down costs.

During the beginning of this year, iZafe Group has signed cooperation agreements with several partners throughout Europe. We have established ourselves as a leading innovator in digital medication solutions, and our collaborations show the strength of Dosell and Pilloxa's innovative technology and its potential to improve the medication process for both patients and healthcare professionals worldwide.

The total value of all agreements amounts to over SEK 59 million, and the revenue from these agreements will gradually grow through monthly license income. We do not yet see the results of these significant agreements signed on the revenue line. I understand that it requires patience for you shareholders; adjustments and implementations take time, and we work every day to start our new collaborations as time-efficiently as possible.
Together, we can rejoice in a bright future where we have better opportunities than ever to enable safe and secure medication for many.

The most important parts going forward are to ensure that we can keep up with the production and integration work schedules. It will be tough since we are a small organization that needs to ensure a lot, but I am working with an incredibly dedicated team and feel confident that we will manage it.

We have had a fantastic outcome in the TO13B option program where we raised a total of SEK 19.4 million before issuance costs. With this money, reduced costs, and commitments from our new cooperation partners, these liquid assets are projected to last until we become cash flow positive.
We have also gained strong shareholders in the company who support and believe in us over the long term.
We have removed the exclusive sales of Dosell via Apoteket.se and initiated discussions to sell via more channels. Dosell as a consumer product is initially sold via Dosell's own website before gradually being sold through more players.

I am convinced that with strong growth in the global pharmaceutical market and an increased demand for digital medication solutions, iZafe Group is well positioned to continue its international expansion and revolutionize the pharmaceutical industry on a global level. We look forward to continuing to deliver positive results to our shareholders and partners.

Thank you for your continued trust.

Contacts

Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12

iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm

E-mail: ir@izafegroup.com
www.izafe.se/investor-relations/
eucaps.com/izafe-group

About iZafe Group AB (publ.)

iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.

The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution and the connected dose bag Pilloxa. The company's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.

The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.

iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. Mangold Fondkommission AB is the company's Certified Adviser. Further information is available at www.izafe.se/investor-relations/.

This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-05-12 08:30 CEST.

Attachments

IZafe Group Q1 2023 ENG

SOURCE: iZafe Group



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