Interim report
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Quarterly Report Second Quarter 2026
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The Group’s net sales for the quarter amounted to 2,639 (1,136) TSEK. Net sales increased significantly compared to the corresponding period of the previous year, while the implementation pace was lower than planned. Several planned installations were postponed due to longer customer processes and limited availability of Dosell pending the new production batch. During the second half of the year, the Company’s focus is to convert existing agreements, customer expansions and commercial opportunities into more revenue-generating units and increased recurring revenues. Operating result (EBIT) for the quarter amounted to -7,511 (-4,277) TSEK. In addition to the higher operating cost base, the result was impacted by increased depreciation and amortization, including amortization of identified excess values arising in connection with the acquisition of the Dutch operations. Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -5,862 (-3,295) TSEK. The deterioration is mainly attributable to the consolidation of the Dutch operations, reinforcements of the organization and increased sales and marketing activities. Costs have therefore increased ahead of the expected increase in revenues from new agreements and upcoming installations. Profit after financial items for the quarter amounted to -7,530 (-4,503) TSEK. Cash flow from operating activities amounted to -3,954 (-1,715) TSEK. Cash and cash equivalents amounted to 10,163 TSEK at the end of the period. The cash position strengthened during the quarter, primarily through financing activities, while operating cash flow remained negative. A key priority going forward is therefore to increase the conversion of invested capital and installed hardware into recurring revenues and improved cash flow. Earnings per share for the quarter before/after dilution amounted to -0.02 (-0.01) SEK. Equity per share at the end of the quarter amounted to 0.04 (0.03) SEK. The equity ratio at the end of the period was 38.6 (50.1) percent. iZafe Group announces that its subsidiary Dosell AB has obtained a European patent in data-driven medication management. The patent strengthens the Company’s intangible assets and long-term position in digital healthcare solutions. iZafe Group announces that its subsidiary Dosell AB has been awarded contracts in Region Jönköping County’s procurement of medication dispensing systems. The agreement covers both the region and all municipalities in the county, entered into force on April 1, 2026, and enables successive call-offs during the contract period. iZafe Group announces that the Company has obtained ISO/IEC 27001 certification for information security. The certification covers the entire Group and strengthens the Company’s position in procurements and international expansion. iZafe Group announces that its subsidiary Dosell AB, through Atea Sverige AB, has been selected as the solution for Västervik Municipality and cooperating municipalities. The agreement has an estimated potential of approximately 500 units, corresponding to 3.7 MSEK in annual recurring revenue at full rollout. Financial Performance in Summary Significant events during the quarter About iZafe Group iZafe Group is a Life-Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management in the home. The company leads the development of digital drug dispensing through the pharmaceutical robot Dosell and the digital dosett device Pilloxa. The company’s solutions reduce the risk of incorrect medication in the home, relieve the burden on public healthcare, increase the quality of life and create a safer environment for relatives. Significant events after the end of the quarter iZafe Group announces that the Board of Directors has completed a directed set-off issue of 10,386,409 B shares to Stichting TCCN as partial payment for the acquisition of the Dutch operations. The issue corresponds to approximately EUR 310,000 and results in dilution of approximately 2.36 percent.
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Comments from the CEO iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 From demand to delivery and recurring revenues The second quarter shows a business that continues to grow, but where development during the first half of the year has been slower than planned. Net sales increased to 2.6 MSEK compared with 1.1 MSEK for the corresponding period of the previous year. At the same time, EBITDA amounted to -5.9 MSEK and cash flow from operating activities amounted to -4.0 MSEK. During the year, we have continued to invest in our organization, production and commercial capacity in order to manage a larger business. Revenues have not yet caught up with this scaling-up. In particular, the time from agreements and customer decisions to installed and revenue- generating Dosell units has been longer than planned, while production delays have limited our ability to deliver at the desired pace. As a result, part of the development we expected during the first half of the year has been postponed. Our most important task during the second half of the year is clear: to convert the agreements, customer relationships and business opportunities we have built up into more active Dosell units, higher recurring revenues and gradually improved cash flow. We stand by our ARR forecast Despite the slower start to the year, we stand by our previously communicated forecast of 22.5 MSEK in annual recurring revenue, ARR, at the end of 2026. This requires a clear acceleration during the second half of the year. Our assessment is primarily based on the ongoing production of approximately 1,300 new Dosell units being delivered and installed before year-end. This volume provides the hardware capacity required to achieve the forecast, provided that the planned implementations are carried out at the pace we are working towards. The commercial opportunities we see, particularly in the Netherlands, support this assessment. Following the end of the quarter, deliveries from the new production batch have commenced and the focus is now shifting to installation and revenue generation. At the same time, we are already working on the next production order. Since the current order was placed, lead times for several components have increased significantly due to changing external factors. We are therefore adapting our production planning to the new conditions and need to work further ahead. When customer demand increases, hardware availability must not be what limits our growth. Higher production volumes also mean that capital is tied up in hardware before the corresponding recurring revenues are realized. This places greater demands on planning, inventory management and working capital. Our objective is to make the chain from production to installation and recurring revenues more predictable. Sweden – significant potential also in our existing customer base The Swedish market for medication dispensing systems continues to mature. The Swedish Association of Local Authorities and Regions (SALAR) highlights medication dispensing systems as an established example of welfare technology, with clear benefits and experience from several municipalities. We see the same shift in our customer dialogues, where the focus is increasingly on broader implementation in regular operations. During the quarter, we took several important commercial steps in Sweden. The agreement within Region Jönköping County entered into force, Dosell is available through Adda’s framework agreement and, through Atea, we were awarded the agreement with Västervik Municipality and cooperating municipalities. At full rollout, the Västervik agreement has an estimated potential of approximately 500 Dosell units, corresponding to approximately 3.7 MSEK in annual recurring revenue. An important part of the potential in Sweden also lies in the customer base we have already built. Dosell is established in approximately 40 municipalities, and usage can grow among customers where the product has already been implemented. When a municipality has completed an initial implementation, trained its staff and integrated Dosell into its operating procedures, the threshold for gradually expanding usage to more users and areas of operation becomes lower. Growth therefore depends not only on new agreements, but also on expansion among existing customers. We will continue to win new customers, but it is equally important to develop those we already have. Implementation normally takes place gradually, and the time between an agreement and its full revenue potential may therefore be significant. During the second half of the year, we will focus on both broadening usage among existing customers and shortening the time from decision to installation.
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Comments from the CEO – continued iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 The Netherlands and further international markets In the Netherlands, we are working both with new customers and to increase usage among existing healthcare organizations. We see how an initial installation can develop into a broader rollout within the same organization. At the same time, integrations and partnerships can make Dosell easier to implement in customers’ existing systems and operating procedures. The Netherlands is the market that has been most clearly affected by the production delays during the first half of the year. The new version of Dosell includes an updated sensor required for the Dutch market, which caused several planned implementations to be postponed. The corresponding recurring revenues were therefore also deferred. Following the end of the quarter, deliveries from the new production batch have commenced, and the focus is now on installation and increasing the implementation pace. The important long-term aspect is that an initial installation can be followed by broader usage, more revenue-generating units and higher recurring revenues within the same customer. At the same time, our activities are becoming more concrete in several other markets. In Norway, we are working together with local partners on municipal opportunities, technical integrations and the implementation of Dosell. In Finland, activities have intensified, with a focus on local references, potential pilots and a clearer commercial model. Following the end of the quarter, we have also taken further steps towards a local market launch in Iceland together with our distribution partner. In parallel, we are working on additional markets where Dosell has the potential to become established over time. We are continuing these dialogues, but are prioritizing resources to the markets where customer interest is most concrete and where the path to installations and recurring revenues is clearest. This enables us to focus on commercial impact today while building the next phase of our international expansion. We are building for significantly larger volumes To achieve profitable growth, it is not enough for Dosell to be scalable as a product. Our processes and internal systems must also be able to handle significantly more customers and units without the organization having to grow at the same pace. During the year, we have built in-house system support that connects sales, customer implementations, installed units and follow-up. At the same time, we are automating parts of the administration to reduce manual processes and provide the organization with better decision-making support. The objective is for the same organization to be able to manage a significantly larger customer and unit base with better control from the initial customer dialogue to an active Dosell unit. Over time, this will contribute to revenues growing faster than the cost base. Growth must translate into cash flow At the end of the quarter, cash and cash equivalents amounted to 10.2 MSEK, while cash flow from operating activities amounted to -4.0 MSEK. The cash position strengthened during the quarter, primarily through the payment of the remaining proceeds from the directed issue carried out during the first quarter. As production volumes increase, more capital is tied up in hardware before the units are installed and begin generating recurring revenues. A shorter time from production to installation and revenue generation is therefore important for both growth and cash flow. We enter the second half of the year with a larger commercial base, new production volume and more opportunities to grow among existing customers than one year ago. Our focus is to deliver the new production to customers, increase usage among existing customers, bring new municipalities and healthcare organizations into operation and secure future production volumes in time. The need for improved medication management is clear, and we have built a position to address it. The next step is to convert this position into more active Dosell units, growing recurring revenues, improved profitability and cash flow. This is our focus during the second half of the year. Stockholm in August 2026 Anders Segerström Chief Executive Officer, iZafe Group
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iZafe Group develops and commercializes digital products and services that ensure people take the right medication at the right time – and that adherence can be monitored digitally. The Market An aging population requires new methods Across Europe, a growing number of people are prescribed multiple medications, and up to 70 percent of those over 60 take three or more medicines daily. The share of the population aged 65 and older is expected to rise from about 21 percent in 2022 to over 24 percent by 2030. A rapidly aging population and an increase in chronic con- ditions heighten the risk of medication errors. At the same time, it is becoming increasingly difficult to secure sufficient qualified staff within home healthcare. Studies show that the introduction of digital tools is essen- tial to meet these changing conditions and to enable safe, cost-effective, and equitable care. Proper medication improves health and quality of life Within the EU, poor adherence to prescribed medication leads to approximately 200,000 deaths each year, corre- sponding to societal costs exceeding €125 billion. A steadily growing market Digitalization and welfare technology make it possible to provide care where and when it is needed, reduce the risk of medication errors, and create more personalized healthcare. By the end of 2022, around 4.4 million connected devices were in use globally to ensure correct medication – a market expected to grow at an annual rate of 13.2 percent, reaching 8.2 million devices by 2027. According to Berg Insight, the market for digital medication management solutions is expected to increase from USD 4.6 billion to USD 8.4 billion between 2023 and 2027. At the same time, the pharmaceutical industry is expe- riencing a growing need for digital solutions that enable monitoring of treatment adherence and support patients throughout their medication journey. iZafe Group – Products and Services Digitalization ensures efficient and safe healthcare The company’s patented product Dosell is a connected medication dispensing robot that prevents double and incorrect dosing and ensures proper medication admin- istration in the home. Dosell creates security for patients, relatives, and healthcare providers, while enabling more efficient use of healthcare resources. Dosell makes it possible to free up healthcare resources by automating one of the most time-consuming tasks in home healthcare – medication management. Dosell dispenses dose bags at the correct time, monitors adherence, and issues alerts if a dose is missed, thereby increasing both patient safety and independence. In Sweden, over 300,000 people already use dose bags, and this number is expected to increase significantly as the population ages. Increased adherence is important for the pharmaceutical industry iZafe Group also offers the digital platform Pilloxa, which – through a mobile app, cloud platform, and smart hardware – supports patients in taking their medication as prescribed. Pilloxa is also used by pharmaceutical companies to digi- talize their Patient Support Programs (PSPs) and to collect real-time data on adherence, engagement, and treatment outcomes. Pilloxa is positioned as a flexible, regulatory-compliant SaaS platform that enables pharmaceutical companies to launch digital patient support faster and at lower cost. Together, Dosell and Pilloxa address the entire chain – from medication dispensing in the home to digital patient sup- port and data-driven healthcare. Pilloxa complements Dosell by digitalizing the patient journey even for those who do not receive their medicines in dose bags. The smart pillbox and app provide reminders, visualize adherence, and collect data that help patients, doctors, and pharmaceutical companies understand and improve treatment compliance. Together, Dosell and Pilloxa ensure adherence, safety, and data-driven insights throughout the entire care chain – from the home to the pharmaceutical industry. Business Model iZafe Group sells its products and services both directly and through partners with local market expertise. The revenue model is primarily based on recurring licence and subscrip- tion revenues from public and private healthcare providers, consumers and pharmaceutical companies. Dosell’s business model varies between markets and customers. In some cases, the hardware is sold separately, while in other cases the Company finances the unit and re- covers its investment through recurring revenues over time. This means that growth may initially require working capital before the corresponding revenues are realised. Dosell is sold both directly and through partners within welfare technology and digital healthcare, while Pilloxa primarily offers a SaaS model aimed at the pharmaceutical industry. Partnerships and Growth iZafe Group currently has active partnerships in eight European countries. Interest in the company’s solutions is growing rapidly among municipalities, healthcare providers, and pharmaceutical companies alike. The focus remains on quality-assured implementation, training, support, and delivery in line with increasing vol- umes. The company continues to see strong and growing demand for solutions that enable safe, connected, and individualized medication management – securing a central role for both Dosell and Pilloxa in the healthcare ecosystem of the future. Company overview
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Dosell – safe medication at home Digital medication-dispensing robot that ensures the right medicine at the right time Dosell is a Swedish-developed medical device that automatically reminds and dispenses the correct dose of medication at the right time. The product is primarily used at home and in home healthcare and is designed to create safety, reduce medi- cation errors, and free up time for healthcare staff. Dosell is used together with medication delivered in dose rolls – where each dose bag contains the medicines to be taken at a specific time. Dosell reads the dose roll, keeps track of the schedule, and automatically dispenses the bag when it’s time to take the medicine. If the user does not take their dose, a notification or alarm is sent to a relative, healthcare staff, or an alarm center via mobile network or WiFi. In this way, deviations can be detected immediately and addressed quickly, increasing safety while reducing the need for physical visits. Security for the patient – efficiency for healthcare With Dosell, more people can stay at home longer, maintaining both safety and independence. For elderly care, this means that time can be used more efficiently – focusing on care instead of manual medication handling. Dosell is developed to function both as a standalone product in the home and as part of digital healthcare platforms through integrations with welfare systems. The product is currently used by municipalities and partners in several European countries, including Sweden, the Netherlands, and Spain. A proven, connected, and scalable solution Dosell is a Class I product under the EU MDR framework, meaning it is approved for use in healthcare and elderly care. It features dual connectivity via WiFi or mobile network and can be monitored in real time via an app or care platform. There are currently over 1,000 active units in operation across Europe, demonstrating that the solution is both scalable and established. Through strong partnerships, Dosell is rapidly expanding into new markets and reaching new user groups. Dosell in brief • Dispenses medication in dose bags at the right time • Prevents double and incorrect dosing • Sends alerts if a dose is missed • Connected via mobile network or WiFi • Integrated with digital healthcare platforms • Swedish-developed, MDR Class I-certified medical device • Used by municipalities and private care providers in several European countries iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 Number of users of dose rolls Sweden Norway Netherlands Spain
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Pilloxa SaaS platform for digital patient support programs (Patient Support Programs) Pilloxa is a Swedish-developed, regulatory-compliant SaaS platform that enables pharmaceutical companies to digitalize their Patient Support Programs (PSPs). Through a combination of a mobile app, cloud platform, and smart hardware, Pilloxa can improve treatment adherence, increase patient engagement, and provide pharmaceutical companies with valuable insights into how their treatments are used in real life. The platform is used to create digital patient journeys that strengthen both treatment outcomes and quality of life. Pilloxa makes it possible to educate, motivate, and monitor patients in real time and gives pharmaceutical companies access to anonymized data on adherence, engagement, and results. In this way, Pilloxa contributes to better health and more data-driven decisions throughout the pharmaceutical value chain. Improved adherence and faster launches Traditional patient support programs are often costly and time-consuming to develop. With Pilloxa, pharmaceutical com- panies can launch digital patient support in less than a month – fully compliant with data protection and medical device regulations. Clinical collaborations have shown that using Pilloxa can increase treatment adherence by up to 14 percent over a year, with an average adherence rate among users exceeding 92 percent. For pharmaceutical companies, this results in both improved treatment quality and more robust data on drug effectiveness. Collaborations and use cases Pilloxa is currently used in projects and collaborations with several leading pharmaceutical companies and research institu- tions, including Bayer, Chiesi Germany, and Sahlgrenska University Hospital. The platform is used in areas such as cardiovascular diseases, diabetes, rare diseases, and autoimmune conditions. Pilloxa can operate as a standalone patient app or be integrated into the pharmaceutical company’s existing systems. The platform manages educational content, reminders, treatment data, and patient interactions – and is built to be customized for each therapeutic area. A scalable and regulatory-secure solution Pilloxa is designed to be flexible and quick to implement – suitable for everyone from small biotech firms to global phar- maceutical corporations. Through a white-label solution, each company can launch its own branded patient app without developing a separate technical platform. Pilloxa in brief • +14% improved treatment adherence • 92.5% average adherence among users • White-label SaaS solution for pharmaceutical companies • Launch time: under 1 month • Provides pharmaceutical companies with real-time data on patient treatment iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026
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Key figures THE GROUP Definitions Operating profit (EBIT) Profit before financial items. Operating profit before depreciation and amortization (EBITDA) Profit before tax, financial items, depreciation and amortization. Earnings per share before dilution Earnings per share before dilution is calculated by dividing profit attributable to the parent company’s shareholders by the weighted average number of outstanding common shares during the period. Equity per share Equity at the end of the period divided by the number of shares outstanding at the end of the period. Equity ratio Equity as a percentage of total assets. Average number of employees Average number of employees during the period converted to full-time positions. 2026 2025 2026 2025 2025 TSEK Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Net sales 2 639 1 136 5 058 2 454 5 991 Operating result (EBIT) -7 511 -4 277 -13 384 -7 796 -16 783 Operating result before depreciation and amortization (EBITDA) -5 862 -3 295 -10 173 -5 833 -12 018 Profit after financial items (EBT) -7 530 -4 503 -14 163 -8 282 -16 790 Earnings per share before/after dilution, SEK -0.02 -0.01 -0.03 -0.03 -0.05 Equity per share, SEK 0.04 0.03 0.04 0.03 0.03 Equity ratio, % 38.6% 50.1% 38.6% 50.1% 32.8% Share price at the end of the period, SEK 0.38 0.25 0.38 0.25 0.48 Number of shares at the end of the period 430 591 337 321 736 171 430 591 337 321 736 171 370 486 350 Average number of outstanding shares 420 833 095 316 913 094 403 977 280 311 274 293 336 844 836 Average number of employees 13 7 12 7 10 Number of employees at the end of the period 14 7 14 7 10
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Financial overview THE GROUP TURNOVER AND RESULTS, APRIL-JUNE 2026 Net sales for the quarter amounted to 2,639 TSEK (1,136). The growth was achieved despite several municipalities postponing new implementations ahead of the summer and the limited availability of units pending a new production batch of Dosell. At the same time, the Company’s sales pipeline continued to grow. Continued development in net sales and profitability depends on this pipeline gradually being converted into active installations and increased recurring revenues. Other operating income for the quarter amounted to 0 TSEK (421). The decrease is due to the agreement for subletting part of the Company’s premises ending at the end of 2025, meaning that both the revenues and the corresponding costs have ceased. Cost of goods sold for the quarter amounted to -1,273 TSEK (-735). The item primarily reflects inventory changes and the handling of Dosell units under the leasing model, where revenues are generated continuously over the contract period. Other external costs for the quarter amounted to -3,041 TSEK (-1,969). The increase compared with the same period of the previous year is mainly attributable to the consolidation of the Dutch operations and investments in sales and marketing activities to support future growth. Personnel costs for the quarter amounted to -4,173 TSEK (-2,140). The increase compared with the same period of the previous year is mainly attributable to the consolidation of the Dutch operations and organizational strengthening to support continued growth. The number of employees at the end of the period increased from 11 at the end of Q1 2026 to 14 at the end of Q2 2026. Depreciation and amortization of tangible and intangible assets amounted to -1,649 TSEK (-982), attributable to capitalized development expenditures related to Dosell and amortization of excess values arising from the acquisition of the Dutch operations. Net financial items for the quarter amounted to -19 TSEK (-226). The improvement compared with the corresponding quarter of the previous year is mainly attributable to lower interest expenses, as the comparative period was charged with interest on a loan raised in 2024. Net financial items for the current quarter include currency translation of liabilities attributable to the acquisition of the Dutch operations. Tax for the period amounted to 112 TSEK (0) and relates to a change in deferred tax attributable to acquisition-related excess values. Net result for the period amounted to -7,418 TSEK (-4,503). The deterioration compared with the corresponding quarter of the previous year is mainly attributable to the consolidation of the Dutch operations, an expanded organization and increased investments in sales and marketing. The number of employees has increased from 7 to 14, while the result has also been impacted by higher amortization of acquisition- related excess values, which do not affect EBITDA or cash flow. Earnings per share amounted to -0.02 SEK (-0.01). iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 TURNOVER AND RESULTS, JANUARY-JUNE 2026 Net sales for the period January–June 2026 amounted to 5,058 TSEK (2,454). The development is driven by a growing base of active Dosell units and the consolidation of the Dutch operations. At the same time, operating capacity and the sales pipeline have been built up faster than revenues, as several planned implementations and deliveries have been postponed until after the summer. The increased capacity provides the conditions for a higher delivery and installation pace during the second half of the year. Improved profitability requires the pipeline to be converted into more active units and increased recurring revenues. Other operating income for the period January–June 2026 amounted to 8 TSEK (827). The decrease is due to the agreement for subletting part of the Company’s premises ending at the end of 2025, meaning that both the revenues and the corresponding costs have ceased. Cost of goods sold for the period January–June 2026 amounted to -2,010 TSEK (-1,745) and primarily relates to inventory changes and Dosell units under leasing arrangements, which generate recurring revenues over time. Other external costs for the period January–June 2026 amounted to -5,732 TSEK (-3,182). The increase is mainly attributable to the consolidation of the Dutch operations and increased investments in sales and marketing activities to support the Group’s continued growth. Personnel costs for the period amounted to -7,479 TSEK (-4,175). The increase is attributable partly to the consolidation of the Dutch operations and partly to strategic reinforcements of the organization to increase the Group’s sales, delivery and growth capacity. The number of employees at the end of the period increased from 7 as of June 30, 2025 to 14 as of June 30, 2026, providing the Company with a stronger platform for continued expansion and management of increased volumes. Depreciation and amortization of tangible and intangible assets amounted in total to -3,211 TSEK (-1,963). The increase is mainly attributable to amortization of the excess values arising from the acquisition of the Dutch operations and does not affect EBITDA or cash flow. Net financial items for the period amounted to -779 TSEK (-486). The outcome is mainly attributable to non-cash revaluations and currency effects on long-term, non-interest-bearing liabilities related to the acquisition of the Dutch operations. Tax for the period amounted to 222 TSEK (0) and relates to a change in deferred tax attributable to acquisition-related excess values. Net result for the period amounted to -13,941 TSEK (-8,282). The deterioration compared with the corresponding period of the previous year is mainly attributable to the operating cost base having grown faster than revenues as a result of the consolidation of the Dutch operations, an expanded organization and increased investments in sales and marketing. The result has also been impacted by higher amortization of acquisition-related excess values and currency effects, which to a large extent do not affect cash flow. The increased capacity provides the conditions for a higher delivery and installation pace during the second half of the year. Improved profitability requires the sales pipeline to be converted into more active units and increased recurring revenues. Earnings per share amounted to -0.03 SEK (-0.03).
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FINANCIAL POSITION, CASH FLOW AND LIQUIDITY Cash flow from operating activities amounted to -3,954 TSEK (-1,715). The deterioration compared with the corresponding period of the previous year is mainly attributable to the higher cost base following the acquisition of the Dutch operations, while the Company continues to work on adapting its cost level and strengthening the share of recurring revenues. Cash flow from investing activities during the quarter amounted to -1,066 TSEK (-181). Cash flow from financing activities for the quarter amounted to 7,946 TSEK (2,003). Cash flow in both the current and comparative period mainly relates to new share issues. Cash and cash equivalents at the end of the period amounted to 10,163 TSEK, compared with 1,673 TSEK as of December 31, 2025. During the period, the Company completed share issues and continued to operate according to plan. Total assets at the end of the quarter amounted to 44,410 TSEK (20,638). The significant increase is primarily attributable to new share issues and the acquisition of the Dutch operations. iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 INVESTMENTS AND DEVELOPMENT EXPENDITURE Investments during the quarter amounted to 1,066 TSEK (181), mainly attributable to capitalized development expenses and the reclassification of units. The Company has invested in platforms to enable increased sales in additional markets. At the same time, the development of Dosell has continued, with a focus on strengthening the product’s capabilities and adapting it to the market. GOING CONCERN The Company’s ability to meet future liquidity needs depends on sales development and continued cost control. The Board of Directors continuously monitors the Group’s liquidity development and financial position. Based on current cash and cash equivalents, the Company’s liquidity forecast, expected business development and completed cost adjustments, the Board of Directors assesses that the Group has financing for the coming twelve-month period. The report has therefore been prepared on the assumption of going concern. PARENT COMPANY In the parent company, group-wide functions are conducted, and the CEO as well as parts of the management team are employed in this company. The parent company has invoiced the subsidiary companies for management fees, which are eliminated at the group level.
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Condensed income statement GROUP TSEK 2026 2025 2026 2025 2025 Apr-Jun* Apr-Jun Jan-Jun Jan-Jun Jan-Dec Operating income Net sales 2 639 1 136 5 058 2 454 5 991 Other operating income 0 421 8 827 1 635 Total revenue 2 639 1 557 5 066 3 281 7 626 Operating costs Goods for resale -1 273 -735 -2 010 -1 745 -3 587 Other external expenses -3 041 -1 969 -5 732 -3 182 -6 882 Personnel costs -4 173 -2 140 -7 479 -4 175 -9 147 Depreciation of tangible and intangible assets -1 649 -982 -3 211 -1 963 -4 765 Other operating expenses -14 -8 -18 -12 -28 Other costs -10 150 -5 834 -18 450 -11 077 -24 409 Operating profit/loss -7 511 -4 277 -13 384 -7 796 -16 783 Net financial items -19 -226 -779 -486 -7 Profit/loss after financial items -7 530 -4 503 -14 163 -8 282 -16 790 Tax on profit for the period 112 0 222 0 114 PROFIT/LOSS FOR THE PERIOD -7 418 -4 503 -13 941 -8 282 -16 676 Other comprehensive income Translation differences 28 0 76 0 -163 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -7 390 -4 503 -13 865 -8 282 -16 839 Basic earnings per share (SEK) -0.02 -0.01 -0.03 -0.03 -0.05 iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 * The comparative period does not include the Dutch operations, which have been consolidated in the current year.
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16§ Condensed statement of financial position GROUP 2026 2025 2025 TSEK 30-Jun 30-Jun 31-Dec ASSETS Non-current assets Balanced development expenditure 13 501 15 290 14 234 Customer agreements 9 429 0 10 265 Patents 52 13 0 Tangible fixed assets 5 220 16 4 425 Right-of-use assets 295 503 0 Deferred tax assets 300 0 292 Current assets Inventories 2 241 2 275 2 230 Accounts receivable 2 128 448 797 Current receivable 1 081 1 268 1 719 Cash and cash equivalents* 10 163 825 1 673 Total assets 44 410 20 638 35 635 SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity Share capital* 21 530 64 347 18 524 Ongoing share issue** 239 0 0 Other capital contributions 154 056 130 535 137 995 Foreign currency translation reserve -87 0 -163 Retained earnings including profit/loss for the period -158 611 -184 538 -144 671 Total shareholders’ equity 17 127 10 344 11 685 Non-current liabilities Postponed tax liabilites 1 941 0 2 164 Lease liability 214 0 0 Other long term liabilities*** 10 317 0 12 873 Current liabilities Interest-bearing liabilities 0 5 188 63 Lease liabilities 85 545 0 Accounts payable 3 454 690 1 805 Other current liabilities 11 272 3 871 7 045 Total liabilities 27 283 10 294 23 950 Total equity and liabilities 44 410 20 638 35 635 iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 * At the Annual General Meeting on May 28, 2025, it was resolved to reduce the share capital for allocation to unrestricted equity. ** The ongoing issue relates to the incentive programs LTIP 2026:I and LTIP 2026:II. *** Other non-current liabilities relate to the acquisition of the Dutch operations and are non-interest-bearing.
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16§ Condensed statement of changes in equity GROUP iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 TSEK 2026 2025 2026 2025 2025 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Equity, opening balance 24 469 12 537 11 685 9 728 9 728 Total result The result of the period -7 418 -4 503 -13 941 -8 282 -16 676 Transactions with owners New share issue 107 2 310 19 942 9 230 19 230 Warrant rights, paid premium 0 0 0 0 264 Share issue expenses -59 0 -635 -332 -698 Other comprehensive income Translation differences on foreign operations 28 0 76 0 -163 Equity, closing balance 17 127 10 344 17 127 10 344 11 685
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Condensed satement of cash flows GROUP iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 TSEK 2026 2025 2026 2025 2025 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Operating profit/loss -7 511 -4 277 -13 384 -7 796 -16 783 Adjustments for non-cash items 1 736 982 3 168 1 963 5 114 Interest received, etc. 0 0 0 0 15 Interest paid, etc. -6 -226 -31 -486 -760 Tax paid 0 0 0 0 0 Cash flow from operating activities before change in working capital -5 781 -3 521 -10 247 -6 319 -12 414 Cash flow form changes in working capital 1 827 1 806 1 640 -2 409 -2 144 Cash flow from operating activities -3 954 -1 715 -8 607 -8 728 -14 558 Cash flow from investment activities -1 066 -181 -2 105 -301 2 149 Cash flow from financing activities 7 946 2 003 19 202 7 704 11 932 Cash flow for the period 2 926 107 8 490 -1 325 -477 Cash and cash equivalents at the beginning of the period 7 248 718 1 673 2 150 2 150 Exchange rate differences in cash and cash equivalents -11 0 0 0 0 Cash and cash equivalents at close of period 10 163 825 10 163 825 1 673
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iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 Distribution of revenues GROUP TSEK 2026 2025 2026 2025 2025 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Sweden 1 648 1 136 3 073 2 454 4 848 Netherlands 991 0 1 985 0 1 143 Total 2 639 1 136 5 058 2 454 5 991
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§ iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 Reporting by business segment GROUP TSEK 2026 2025 2026 2025 2025 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec External revenue Sweden 1 648 1 136 3 073 2 454 4 848 Netherlands 991 0 1 985 0 1 143 2 639 1 136 5 058 2 454 5 991 Direct costs Sweden -544 -735 -575 -1 745 -2 432 Netherlands -729 0 -1 435 0 -1 155 -1 273 -735 -2 010 -1 745 -3 587 Contribution margin Sweden 1 104 401 2 498 709 2 416 Netherlands 262 0 550 0 -12 1 366 401 3 048 709 2 404 Other items Other operating income 0 421 8 827 1 635 Other external costs -3 055 -1 977 -5 750 -3 194 -6 910 Personnel costs -4 173 -2 140 -7 479 -4 175 -9 147 -7 228 -3 696 -13 221 -6 542 -14 422 Operating profit before depreci- ation -5 862 -3 295 -10 173 -5 833 -12 018
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§ Condensed income statement PARENT COMPANY iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 TSEK 2026 2025 2026 2025 2025 Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec Operating income Net sales 370 450 744 900 1 790 Other operating income 0 404 0 805 1 614 Total revenue 370 854 744 1 705 3 404 Operating costs Other external expenses -1 380 -1 411 -2 424 -2 330 -4 507 Personnel costs -1 517 -1 043 -2 675 -1 950 -3 696 Deprecation and amortization of property, plant and equipment, and intangible assets 0 -13 0 -25 -41 Total costs -2 897 -2 467 -5 099 -4 305 -8 244 Operating profit/loss -2 527 -1 613 -4 355 -2 600 -4 840 Net financial items -14 -224 -1 401 -720 -198 Profit/loss after financial items -2 541 -1 837 -5 756 -3 320 -5 038 Tax on profit for the period 0 0 0 0 0 PROFIT/LOSS FOR THE PERIOD -2 541 -1 837 -5 756 -3 320 -5 038
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Condensed balance sheet PARENT COMPANY iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 TSEK 2026 2025 2025 30-Jun 30-Jun 31-Dec ASSETS Non-current assets Tangible fixed assets 0 16 0 Financial fixed assets 42 685 34 995 42 723 Current assets Current receivables 23 710 5 214 17 741 Cash and bank balances 8 388 669 843 Total assets 74 783 40 894 61 307 SHAREHOLDERS’ EQUITY AND LIABILITIES Restricted equity Share capital 21 530 64 347 18 524 Unrestricted equity Ongoing share issue 239 0 0 Share premium reserve 153 614 130 093 137 553 Retained earnings includning profit/loss for the period -120 041 -160 827 -114 284 Total shareholders’ equity 55 342 33 613 41 793 Non-current liabilities Other non-current liabilities 10 317 0 12 873 Current liabilities Liabilities to credit institutions 0 5 000 0 Accounts payable 983 251 466 Other current liabilities 8 141 2 030 6 175 Total liabilities 19 441 7 281 19 514 Total equity and liabilities 74 783 40 894 61 307
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Accounting principles, risks, and other information. COMPANY INFORMATION The group’s operations include the development and marketing of products that contribute to a more qualitative and secure healthcare at home, both in the Swedish and international markets. The group develops and sells the product Dosell, with the aim of promoting reliable and safe medication management, and engages in the development and sales of the medical device, the connected pillbox Pilloxa, to improve medication adherence. The parent company of the Group, iZafe Group AB (reg. no. 556762-3391), is a public limited liability company domiciled in Stockholm, Sweden. The Company’s B shares are listed on Nasdaq First North Growth Market. iZafe Group AB has three wholly owned subsidiaries: Dosell AB (reg. no. 556898-3018), Pilloxa AB (reg. no. 559019-3354), and the Dutch subsidiary Dosell B.V. (reg. no. 93942362) In this report, iZafe Group AB (publ) is referred to either by its full name or as the parent company, and the iZafe group is referred to as iZafe or the group. All amounts are expressed in TSEK unless otherwise stated. PRINCIPLES FOR PREPARING THE INTERIM REPORT The Group applies the Swedish Annual Accounts Act and the International Financial Reporting Standards (IFRS) as adopted by the EU, as well as RFR 1 Supplementary Accounting Rules for Groups when preparing financial reports. The parent company applies the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities when preparing financial reports. This quarterly report has been prepared in accordance with IAS 34 Interim Financial Reporting. For detailed information on the company’s accounting policies, please refer to the latest published annual report. Changes to significant accounting policies Several new standards and changes to standards will come into effect for financial years beginning on 1 January 2026. None of these are expected to have an impact on the Group’s financial reports. TRANSACTIONS WITH RELATED PARTIES Board members have invoiced the Company for consulting services through related companies amounting to 0 TSEK (0) for the quarter. In addition to this, the group has not conducted any transactions with related parties during the reporting period other than customary salaries and compensations to the corporate management. FINANCIAL RISKS Through its operations, iZafe is exposed to several financial risks, such as market risk, credit risk, currency risk, and liquidity risk. The group’s management and board actively work to minimize these risks. A detailed account of these risks is provided in the latest published annual report. SIGNIFICANT RISKS AND UNCERTAINTIES The Group’s development depends on commercial agreements and customer dialogues being converted into installations and recurring revenues at the expected pace. Implementations among municipalities and other healthcare providers may be affected by, among other things, budget processes, procurements and internal decision-making processes, which may result in planned installations and revenues being postponed. Dosell’s hardware-based business model with recurring revenues means that growth may require investments in production and inventory before the corresponding revenues are realized. The Group is therefore exposed to risks related to component availability, production, delivery times and working capital, and is dependent on intellectual property rights and technical solutions. The Group’s future liquidity needs are affected by sales development, cost control and capital tied up in connection with growth. An increased pace of production and installation may result in a greater need for working capital before the corresponding recurring revenues are realized. The Board of Directors therefore continuously monitors the liquidity development and adjusts production planning, capital tied up and the cost level based on the Company’s financial conditions. External working capital financing may be used, if necessary, to support capital tied up in connection with growth. SEGMENTS The Group has two operating segments: Sweden and the Netherlands. IZAFE SHARES iZafe has issued shares in two classes, Class A shares and Class B shares. The Class B share is traded on Nasdaq First North Growth Market. Each Class A share carries ten votes, while each Class B share carries one vote. As of June 30, 2026, the share capital amounted to SEK 21,529,566.85, divided into 600,000 Class A shares and 429,991,337 Class B shares, with a quotient value of SEK 0.05 per share. iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026
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iZafe Group AB Org.no: 556762–3391 Interim report April-June 2026 WARRANTS The Group has two outstanding warrant programs. LTIP 2026:I – Incentive program for the CEO, senior executives and other employees LTIP 2026:I comprises a series of warrants issued to the Company’s CEO, senior executives and other employees. LTIP 2026:I comprises a total of not more than approximately 23,952,638 warrants, which together entitle the holders to subscribe for a maximum of 23,952,638 Class B shares. The warrants entitle the holders to subscribe for Class B shares in the Company at a subscription price of SEK 0.10 per Class B share, provided that the average share price of the Class B share during a period prior to the first exercise date amounts to at least 200% of the volume-weighted average price (VWAP) during the ten trading days preceding the Annual General Meeting. The exercise period for the warrants falls in June 2028. Upon full exercise of the warrants issued under LTIP 2026:I, the Company’s share capital may increase by a maximum of SEK 1,197,631.90. The warrants are subject to customary recalculation terms in connection with issues, etc. LTIP 2026:II – Incentive program for the Board of Directors LTIP 2026:II comprises 2,000,000 warrants entitling the holders to subscribe for the same number of Class B shares in the Company at a subscription price of SEK 0.10 per Class B share, provided that the average share price of the Class B share during a period prior to the first exercise date amounts to at least 200% of the volume-weighted average price (VWAP) during the ten trading days preceding the Annual General Meeting. The exercise period for the warrants falls in June 2028. Upon full exercise of the warrants issued under LTIP 2026:II, the Company’s share capital may increase by a maximum of SEK 100,000. Board members participating in the program used the board remuneration resolved by the Annual General Meeting, net after tax, to pay for the warrants and waived the remaining part of the board remuneration. The warrants are subject to customary recalculation terms in connection with issues, etc. The maximum dilution effect of the warrant programs amounts to approximately 5.68% of the total number of shares and votes in the Company.
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iZafe Group AB David bagares gata 3, 111 38 Stockholm info@izafegroup.com +46 821 11 21 www.izafegroup.com CONTACT AUDIT REVIEW This report has not been subject to review by the auditor of iZafe Group. CERTIFIED ADVISER DNB Carnegie UPCOMING FINANCIAL REPORTS 2026-11-03 2026 Interim report Q3 2027-02-16 2026 Year-End Report Financial reports are available on the company’s website, www.izafegroup.com, the same day as they are published. DECLARATION The Board of Directors and the CEO confirm that the interim report provides a true and fair overview of the parent company’s and the Group’s operations, position, and results, as well as describes the significant risks and uncertainties facing the parent company and the companies included in the Group. Stockholm, August 31, 2026. iZafe Group AB (publ.) Anders Segerström CEO Richard Wolff Chairman of the Board Anna Håkansson Board Member Anna Nyquist Board Member