Financial Performance in Summary

• Total revenue for the quarter amounted to 2,751 (1,052) TSEK, more than doubling compared to the same period last year. The increase is primarily driven by hardware sales to the Netherlands, which is expected to generate recurring revenue in 2025 as the market establishes itself and implementation progresses.
• Operating result (EBIT) for the quarter amounted to -5,697 (-20,475) TSEK
• Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -4,714 (-3,386) TSEK.
• Result after financial items for the quarter amounted to -5,908 (-20,389) TSEK.
• Cash flow from operating activities for the quarter amounted to -178 (-1,946) TSEK.
• Earnings per share for the quarter before/after dilution amounted to -0.02 (-0.06) SEK.
• Equity per share at the end of the period amounted to 0.04 (0.09) SEK.
• The solidity at the end of the period amounted to 40.1 (73.2) percent.

Significant events during the quarter

• iZafe Group AB launched Dosell in Spain in collaboration with Ti Medi. At an event in Granada, Dosell was presented to Ti Medi’s network of 1,400 pharmacies. The launch marks a significant milestone, making Dosell commercially available in Spain, with the first units expected to be in use soon. The partnership aims to improve medication management and patient adherence.
• iZafe Group received an order for 1,000 Dosell units from its Dutch distributor TCCN, valued at approximately 3,000 TSEK. Deliveries will take place in two phases during 2024 and 2025, with expected recurring revenue of up to 400 TSEK per month. The order strengthens iZafe’s revenue model and reinforces Dosell’s position in the Dutch market.
• iZafe Group has certified Dosell for integration with Enovation UMO, a leading healthcare platform in 18 countries. The certification enhances Dosell’s market position, facilitates easier implementation in the Netherlands, and opens opportunities for expansion into additional markets.

Significant events after the end of the quarter

• iZafe Group has conducted a directed share issue of approximately 9.2 MSEK through the issuance of 46.15 million B-shares at a subscription price of 0.20 SEK per share. The capital will be used to strengthen working capital, accelerate growth, and support the expansion of Dosell and Pilloxa into new markets.
• iZafe Group has started 2025 strong, with a 25% increase in billable Dosell units, approaching 1,000 active devices. Growth is driven by rising demand in Sweden, Norway, and the Netherlands, while the launch in Spain is planned for February. Product improvements and the recently completed 9.2 MSEK share issue further strengthen the company’s growth and goal of achieving cash flow positivity.

Forecast
In this report, we present a forecast graph illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated. By the end of 2024, our ARR reached approximately 1.7 MSEK, reflecting a 326% increase compared to the previous year.
 
In 2025, this growth is expected to accelerate further, with ARR projected to reach 10 MSEK by year-end, a 352% increase. Beyond that, ARR is expected to continue growing rapidly, more than eightfold by 2029, when we anticipate exceeding 85 MSEK. We will track this forecast on a quarterly basis to provide our shareholders with a clear view of our actual progress and how we are advancing toward our financial goals.

Comments from the CEO
2024 has been a pivotal year for iZafe Group. We have transitioned from developing our product and establishing market conditions to now generating tangible financial results. With a 437% increase in revenue compared to 2023, we see a clear growth trend driven by rising demand for our solutions. Our business model is beginning to demonstrate its strength through recurring revenue, and we have surpassed 2 million SEK in ARR. Our goal for the year is to reach our milestone of 10 million SEK in ARR.
 
Throughout the year, we have sold 2,500 Dosell units, with growth primarily driven by hardware sales to the Netherlands. Although hardware margins are low, this provides a strategic foundation for future profitability. The true value-creation phase occurs when the units are activated and start generating high-margin recurring license revenue, directly boosting our ARR. We are now approaching an important milestone of 1,000 active dispensing units, which strengthens the stability of our product and business model while contributing to an increasing stream of recurring revenue.
 
In this report, we present a forecast graph illustrating our expected growth in both ARR and the number of active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated. By the end of 2024, our ARR reached approximately 1.7 MSEK, reflecting a 326% increase compared to the previous year.
 
In 2025, this growth is expected to accelerate further, with ARR projected to reach 10 MSEK by year-end, a 352% increase. Beyond that, ARR is expected to continue growing rapidly, more than eightfold by 2029, when we anticipate exceeding 85 MSEK. We will track this forecast on a quarterly basis to provide our shareholders with a clear view of our actual progress and how we are advancing toward our financial goals.
 
However, it is important to understand that there is a time lag between ordering hardware and when the units start generating recurring revenue. The production and delivery process must be managed, partners need to be trained, and they must ensure full control over the implementation process. Additionally, customer satisfaction is crucial for achieving stable, long-term growth.
 
This is particularly relevant when entering new markets and establishing new partnerships. We have already passed this phase in the Netherlands and Sweden, while Spain and Norway are expected to do so during the spring. Spain is set for a launch in February, with Norway expected to follow shortly after. These markets represent a significant opportunity to further increase our ARR and strengthen our position in digital medication management. Beyond this, we aim to expand into additional new markets to continue our growth journey.
 
Market Potential for Dosell
Dosell operates within an existing and growing market—individuals who receive their medication pre-packaged in dose pouches. For Dosell to be implemented in a new market, an established dose pouch infrastructure is required, where Dosell integrates at the final stage of the process to digitize healthcare and enhance medication safety. The markets we currently operate in have a stable and expanding dose pouch market, and forecasts indicate that this trend will continue as more countries recognize the benefits of this distribution method.
 
The global trend is clear—the dose pouch market is steadily growing across Europe and the U.S., becoming increasingly standardized as a safe and efficient way to distribute medication. By adapting Dosell to different types of dose pouches, particularly in the Netherlands, we have developed a unique, flexible, and scalable solution that enables faster entry into new markets while significantly lowering the barriers to expansion.
 
With a significantly reduced time-to-market, we can now implement Dosell much faster, having eliminated technical barriers. Adaptations to new markets now primarily focus on optimizing customer journeys and meeting local regulatory requirements.
 
To illustrate our market potential, we present an estimate of the number of patients currently receiving their medication in dose pouches across our focus markets:
 

• Sweden: 300,000 patients
• Norway: 150,000 patients
• Netherlands: 600,000 patients
• Spain: 200,000 patients at Ti Medi, with an annual growth rate of 10%

 
With an established presence in these markets and proven demand, we see significant opportunities to continue scaling Dosell internationally and strengthening our position as a leading player in digitalized medication management.
 
Enhanced Investor Relations and Shareholder Communication
We have intensified our investor relations communication to provide shareholders and investors with a more transparent and continuous insight into our growth journey. Through our monthly newsletter, we regularly share updates on our progress, strategic initiatives, and market expansion, fostering a closer dialogue with our stakeholders.
 
The directed share issue of 9.2 MSEK provides the foundation to accelerate growth by increasing the activation of Dosell units and expanding into new markets. At the same time, we continue to focus on strict cost control and operational efficiency, aiming to achieve cash flow positivity and build a long-term profitable business.
 
Future Prospects
We have built a robust and sustainable business model, where our products, partnerships, and market strategies work together to drive long-term profitable growth. In 2025, our focus is to:
 

• Increase ARR by boosting the activation rate of already sold units and accelerating implementation on existing markets.
• Establish and expand strategic partnerships in both new and existing markets to drive growth.
• Maximize recurring revenue by optimizing our business model and adding value-enhancing services for existing Dosell units.
• Strengthen collaborations with municipalities and healthcare providers to reinforce our market position and ensure stable, predictable growth.

We see a clear path forward, where the expansion and scaling of our license model will continue to fuel our growth. With an increasing ARR and a more stable revenue structure, we anticipate strong momentum in healthcare digitalization through automated medication management. We firmly believe that Dosell has the potential to capture a significant share of this market and establish itself as a leading solution in digital medication management.
 
The foundation is in place, and we are now entering a growth phase, where our focus is on scalability and operational efficiency.
 
I would like to conclude by expressing my gratitude to our amazing employees, partners, and shareholders for your dedication and support. It is because of you that we can continue to revolutionize medication management on a global scale.
 
Thank you for being part of our journey.

Anders Segerström
Chief Executive Officer, iZafe Group