Summary of financial performance

• Net sales for the quarter amounted to SEK 84 (12) thousand. The quarter's net sales consist of revenues related to the sale of the Dosell digital pharmaceutical robot.
• Operating profit for the quarter amounted to SEK -5,184 (-7,962) thousand.
• Profit after financial items for the quarter amounted to -5,233 (-8,258) TSEK.
• Cash flow for the period amounted to SEK -7,155 (-5,400) thousand.
• Earnings per share for the quarter before / after dilution amounted to SEK -0,1 (-0,2).
• Equity per share at the end of the period amounted to SEK 0,4 (0,4).
• The equity/assets ratio at the end of the period was 81.8 (39.5) percent.

Significant events in the quarter

• The company has launched an updated version of Dosell that includes several new improvements and features that enhance both the user experience and reliability.
• During the month of June, the company has delivered a large batch to Apoteket AB, which has had a high demand for the company's products and has sold out of its stock.

Significant events after the end of the quarter

• iZafe signs a Letter of Intent to acquire Pilloxa AB. Pilloxa has developed a technical platform for improved adherence that pharmaceutical companies use to design digital patient support. The purchase price will be paid in 70,874,308 newly issued iZafe shares with an indicative value of approximately 30 million SEK.

COMMENTS FROM THE CEO
Our vision is to ensure health through better adherence and in the last quarter we have taken an even bigger step through our updated vision and strategy presented in May.
 
During the second quarter, we focused on consumer advertising, which continues to deliver good results and improved Dosell's performance. At the same time, we are seeing increased interest among municipalities in both pharmaceutical robots and the data they can bring to medication management. After the end of the quarter, we announced a letter of intent to acquire Pilloxa AB.
 
The acquisition of Pilloxa creates a unique position in digital health
With the acquisition of Pilloxa, we have the opportunity to create a more comprehensive offering that meets the different needs of consumers, from independent medication management to the choice of a smart connected pillbox or a fully automated medication robot.
 
The acquisition of Pilloxa also gives us access to additional sales channels as we complement each other very well. Pilloxa has had pharmaceutical companies as its primary customer group and has developed a unique SaaS solution as well as support for the conduct of clinical studies. Immediately after the acquisition, we will start the journey towards making Pilloxa's solution more commercially viable in our existing sales channels.
 
Pilloxa's employees and the expertise they bring, are an important part of the acquisition. They come in with the right kind of knowledge and the experience we need to create a company that takes the position of being the leader in the market to ensure adherence to medication and ultimately, to demonstrate the health benefits of it. We are working to optimize our organization to cut costs and prepare for a future merge.
 
The company is continuing discussions with investors, who are keen to see more acquisitions and organic growth in a market that is largely untapped. Following our communication regarding the acquisition of Pilloxa, interest has increased further - which is positive for future funding of the company in addition to the warrant program TO10B which, depending on the stock price, will provide a better capital contribution.
 
B2C - continual increased sales and the potential outside Sweden
In recent months, we have invested in television advertising to spread awareness of Dosell. As a result, we now sell around 100 units a month via the Apoteket website and the consumer version of Dosell accounts for around 90% of all dispensations today. This is a very good start for a brand-new type of product and service, but not enough and hence need to find more ways to get higher volumes out.
 
Our investment here in Sweden with the consumer version of Dosell has been crucial in creating the experience and knowledge needed to export the solution to other countries and markets. In all dialogues with potential partners, there has also been interest in our vision's future solutions, which we will now be able to sell and distribute much more quickly in connection with the acquisition of Pilloxa.
 
However, the concept in Italy continues with delays due to production and software changes. The Italian market has great potential where we see great advantages in the customer being able to have their medicines packaged in sachet bags directly by the local pharmacy together with their Dosell. In the Swedish market this is a challenge where we see long lead times to get their medicines in sachet bags if they do not already use it when they have bought their Dosell. Therefore, we see great potential in the Italian concept, which is also applicable to more markets in Europe.
 
B2B - interest in medication data
We see a clear trend that more municipalities are starting to demand pharmaceutical robots, with many tenders just coming out in both Sweden and Norway.
 
We have also noticed strong demand from welfare platforms that want to get data on medication. With the acquisition of Pilloxa, this becomes a complete solution for welfare platforms as we can provide even more data around medication adherence.
 
Continuous improvement
We are constantly working to improve Dosell's performance. As we communicated in the spring, we had production challenges and a software release that included improvements necessary for our partners to deploy their Dosell in the field. These elements were completed too late into the summer holidays and as a result our partners are now able to go live after the summer months.
 
We have an exciting and intense period ahead of us. Our many partners and customers will start up the use of Dosell, we will finalize all the elements around the acquisition and ensure to develop an attractive joint future offering.