Letter from the CEO: CS MEDICA's 2024 Progress Report

CS MEDICA Provides Insights on Continued Growth and Strategic Health.  

As a follow-up to our Annual Report, we're still navigating through the complexities of our industry as a scale-up MedTech and the challenges that come our way. I want to address some concerns that have been raised regarding CS MEDICA's financial capacity and the impact these factors may have on our growth and overall company health.  

Despite the hurdles, our strategic focus and operational adjustments yield tangible results. We are witnessing an uplift in customer acquisition, with registrations and patents increasing and an acceleration in our production deliverables. These efforts directly contribute to our revenue gain—a testament to our partners and team's resilience and dedication.  

Our order pipeline from 2023 helped us as we entered this year on a more solid note than last year. As February closes, we are picking up revenue with 1,9 mDKK invoiced to customers in January and February, all located in our EU territory. Hence, we have successfully released production and invoiced to a mix of recurring (97%) and new customers (3%) across EU markets.   

Looking ahead to March, we have plans to release production for the pick-up of 0,94 mDKK, covering 45% from a recurring customer and 55% from new customers expanding our reach to new European markets. Also, we have increased our order pipeline of new customers with a longer lead time to market and are finalizing further agreements, which we hope to share more about in the coming month.  

Changing our strategy to focus intensely on the supply chain and lead time challenges has benefited our journey. This approach, coupled with our efforts to cultivate a relatively new customer base with partnerships less than two years old, is seeing repurchase rates rise. This momentum is critical for our continued growth and stability, and our commitment to navigating these challenges is persistent.   

However, it is essential to acknowledge that our challenges and going concern remain while we make significant strides in the right direction. Our financial capacity and need for additional funding are areas we are actively addressing by exploring every avenue to secure the necessary funding to boost our sales further and strengthen our position in the market as first-movers. The pending payments from China, delays in registrations in key markets, and supply chain challenges are obstacles we are diligently working to overcome.  

We have acknowledged that a reevaluation of the competencies within our board is necessary to navigate these challenges more effectively. Hence, at our annual general meeting, we will focus on presenting and identifying board members who can provide substantial support in funding initiatives, offer legal expertise, and bring international expertise to help us steer the complexities of different cultures and negotiations. This strategic enhancement of our board is aimed at bolstering our efforts to secure the necessary funding to boost our growth further and overall company health.  

In closing, I am grateful for our stakeholder's ongoing support and trust in CS MEDICA. Our journey is one of collective effort and belief in our company's immense potential. I look forward to sharing more frequent updates, as promised, as we move forward, building on navigating challenges and delivering both short-term and long-term successes.