ContextVision AB — Annual Report 2023

Apr 12, 2024

Annual Report 2023

Contents Business overview

About ContextVision	3
2023: The year in brief	5
ContextVision – a strategic investment	6
Comments from the CEO	8
Point-of-Care Ultrasound: Shaping the future of medical
technology	10
Market trends and responsive approaches	12
Business strategy	14
Business model	16
Sustainability report	23

Statutory Annual Report

Administration report	30
Risks and uncertainties	33
Five year summary	34
Corporate governance report	36
Board of directors	39
Group management	40
The share	41
Financial reports	43
Notes	49
Auditor's report	64
Glossary	67
Financial calendar and Annual General Meeting	68

Financial calendar 2024

The Annual General Meeting

(AGM) will be held on Wednesday, May 14, 2024 at 1.00 p.m. at the company's premises at Holländargatan 13, Stockholm.

Q1 2024 report — May 08 Q2 2024 report — August 26 Q3 2024 report — November 07 Year-end report 2024 — February 20, 2025

Contact person for investor relations

Richard Hallström, Chief Financial Officer richard.hallstrom@contextvision.com

ContextVision: World-leading image quality for better healthcare

Our Vision

Enable healthcare transformation.

Our Purpose

Our proprietary software solutions enhance the image quality of medical images, leading to faster and more reliable diagnostics and interventions for patients worldwide.

ContextVision, established in 1983 and based in Sweden, is a medical software company renowned for image analysis and artificial intelligence solutions. With a focus on image enhancement and customizing this technology to create world-class image quality, ContextVision is a global market leader and a trusted partner to leading original equipment manufacturers (OEM) of ultrasound, X-ray, and Magnetic Resonance Imaging (MRI) equipment.

With a team of 41 employees, of whom approximately 50 percent are involved in research and development, ContextVision is committed to continuous development and innovation. This commitment ensures that our software solutions remain future-proof and meet the evolving needs of medical imaging. Our presence extends globally with local representation in the U.S.A, Japan, China, and South Korea, emphasizing our dedication to providing the best service through our knowledgeable team.

A key component in the medical imaging value chain

Healthcare providers worldwide face the same challenge which ContextVision helps to solve: How to increase patient care while coping with limited resources. We combine intelligent technology with clinical expertise to improve healthcare service and outcomes for more people globally.

Celebrating 40 years of excellence

ContextVision's origins date back to the 1970s, with the vision "To be the IBM of image processing". Over the years, the focus shifted from serving the end-user market to forging strong partnerships with leading OEMs.

Over time, our offerings continued to evolve: from general image processing, to image enhancement, and finally to image quality – building on a combination of deep clinical insights and profound knowledge of image enhancement algorithms.

1970 1980	1990	2000	2010	2020
In November 1983, ContextVision was established.	In 1985 GOP 300 was introduced. GOP software is the basis of the image enhancement software products we offer today.	In 1997 ContextVision was listed on Oslo Stock Exchange. At first, MRI-customers were targeted, but later new segments were explored: Ultrasound, CT, electron micros copy, industrial X-Ray and digital	In 2015, ContextVision implemented Deep Learning, a subset of AI.
Our origins date back to the 1970s at Linköping University.		cameras.	In 2018 the first AI-based product was launched.

2023: A year of growth in image quality and professional services

ContextVision showed continued growth and profitability with an increase in net sales of 12.2% and profit margin of 31.2%, reaching record-high net sales. Marking our 40th year in business, we continued to strengthen our operations by securing new contracts and expanding existing partnerships with major OEMs, resulting in broadening

licensing revenue streams for the coming years.

To ensure a sustainable workplace we regularly monitored our employees' workload, engagement and well-being through the Employee Net Promoter Score (eNPS). We are proud that our eNPS rate in 2023 was 36 (corresponding index for all enterprises is 14), with an overall response rate of 91%. Outstanding areas were Team Spirit and Commitment. Read more on page 27.

A Growth program was initiated to look for opportunities adjacent to the Image Quality market. Preparations were made to strengthen R&D to support the Growth program, while the services organization was formalized to ensure we can deliver and expand on our service offerings. Results from our service offerings are already beginning to materialize, underscoring their significance in accelerating revenue growth.

Richard Hallström was appointed as the new Chief

Financial Officer (CFO). Richard has extensive experience in leadership roles, previously serving as CFO for Scandi-Nova Systems and Global Stoneridge Electronics.

ContextVision embarked on an expansion into the Pointof-Care Ultrasound (POCUS) market, leveraging the potential of deep learning, a subset of AI, to enhance realtime image interpretation and acquisition intelligence in POCUS machines. To support this strategic direction, the company initiated preparations and formed a dedicated team. With ongoing recruitment and external collaborations, we aim to strengthen our capabilities in this emerging and impactful field, ultimately improving healthcare outcomes.

Our X-ray product portfolio was enhanced with advanced features, elevating image quality while minimizing radiation dose exposure. We are pushing the boundaries to provide healthcare with exceptional quality images to increase efficiency and add more value to providers. Altumira® now provides scatter correction and Altumira® Plus offers stronger noise reduction, both powered by AI.

ContextVision engaged with leading healthcare professionals, researchers, and OEMs at key gatherings,

including the European Congress of Radiology (ECR) in Vienna in March 2023 and the CMEF conference in Shanghai in May 2023. At the Radiological Society of North America (RSNA) conference in Chicago in November 2023, the focus was on the enhanced Altumira series for X-ray, alongside our full range of solutions.

ContextVision – Strong track-record of profitable growth

Unveiling great oportuntities in new application areas

Investing in ContextVision means supporting a company that is not only expanding its existing operations but is also committed to harnessing opportunities for growth in the ever-evolving medical diagnostics field. Our strong financial standing and dedication to impactful healthcare solutions make ContextVision a compelling choice for investors looking to contribute to the future of medical diagnostics and improving healthcare worldwide.

Sustaining market leadership: The power of long-term partnerships

ContextVision has firmly established itself as the market leader, largely thanks to our enduring partnerships with approximately 70 customers, including 8 of the top 10 industry players within ultrasound. These lasting collaborations, some spanning several decades, affirm our consistency and superior quality in imaging solutions. Our ability to offer customized imaging differentiation has not only strengthened our industry position but also nurtured customer loyalty, playing a crucial role in our business's continued growth and creating natural moats against competition. As our customers' product life cycles extend over several years, this creates highly predictable revenue streams.

Strategizing growth: Expanding horizons in new business areas

In 2023, ContextVision experienced a record year with a 12.2% sales increase (approx. half related to translational FX), significantly outpacing the global market's 4.0% growth in our segments. This success underscores our preparedness for continued growth in our core business and expansion into new areas, such as the POCUS market. We are continuously leveraging customer insights and technology advancements to refine our products and services. Our entry into the POCUS market shows how we are diversifying beyond our core business and signifies a forward-thinking investment approach.

Robust financial strength and sustained performance

Our financial resilience, characterized by our debt-free status, strong net cash position, positive cash flow, attractive margins, and solid long-term investor base, lays a foundation for future growth and market exploration. We have consistently achieved profitability and double-digit growth over several quarters, with only a few exceptions. This financial stability is pivotal for our ongoing investments in innovative technologies and new market ventures.

									.
									.

Impactful healthcare solutions: A sustainable investment

ContextVision's contributions to healthcare are substantial, impacting over 245 million patients each month. We're committed to making a positive impact on global public health and healthcare efficiency. Our versatile software for ultrasound, X-ray and MRI is essential in various healthcare settings, including routine checkups and veterinary care, and significantly improving the diagnostics process worldwide. Investing in ContextVision not only promises sustainable growth but also actively contributes to a healthier world, making it a responsible choice for those looking to impact global health positively.

Dedicated to innovation: A journey of continuous development

ContextVision's success is driven by a skilled team deeply committed to development and innovation. Our employees are among the best in the medical imaging field as well as in AI; their exceptional know-how is supported by the company's great intellectual property, underpinned by selected patents. Besides that, we maintain strong ties with academia, for instance through the Wallenberg Foundation's WASP research program linked to Linköping University, ensuring we stay ahead in the rapidly evolving medical imaging field. Our culture of innovation integrates and advances the latest technologies and AI, positioning us as industry leaders.

Forty years of innovation in medical imaging

In 2023, ContextVision celebrated a significant milestone: its 40th anniversary marking four decades at the forefront of medical imaging technology. Today, our advanced solutions positively impact over 245 million patients each month. This year, our focus extends beyond honoring our past achievements; we are expanding our strategic course for future growth. This includes a steadfast dedication to advancing image quality, delivering premium services to our clients, and exploring the promising Point-of-Care Ultrasound (POCUS) market.

From our early days at Linköping University to becoming a global leader in medical imaging, ContextVision has significantly influenced patient diagnostics. Initially aspiring to be the "IBM of image processing", we have refined our mission to deliver unmatched image quality, leveraging sophisticated image enhancement algorithms and deep clinical insights.

Financial highlights and strategic growth

This year, ContextVision showcased financial strength, achieving a double-digit sales growth, decisively outpacing the global market's revenue growth of 4%. This performance highlights our strategic agility and operational excellence where we continued to generate robust margins.

As our cash position remains strong, we were able to payout a total dividend of 23.2 MSEK, divided into two tranches during the year. Thanks to our numerous enduring partnerships with OEMs – many spanning over decades – we have stable and recurring licensing revenue streams fueling our cash flow. This is essential as we are now advancing our investments in innovation to foster future growth.

Engagement and recognition at key industry conferences

In 2023, our active participation in major industry conferences was pivotal for our innovation showcase. Engagements at the European Society of Radiology (ECR) congress in Vienna, the China International Medical Equipment Fair (CMEF) in Shanghai, and the Radiological Society of North America (RSNA) conference in Chicago allowed us to interact with healthcare professionals and customers, and to highlight our latest developments. These platforms were crucial for presenting our enhanced Altumira series for X-ray, among other products. The AI-powered Altumira® for static imaging now features an impressive scatter correction functionality, enabling a significantly lower radiation dose with gridless acquisition. In addition, further image quality improvements were made to Altumira® Plus for dynamic imaging. Our continuous improvements in providing exceptional quality images enhance efficiency and add value to healthcare providers world-wide.

At the heart of ContextVision lies innovation, propelling us to set new standards in medical imaging.

Driving growth through innovation

At the heart of ContextVision lies innovation, propelling us to set new standards in medical imaging. Our culture, characterized by open discussions, experimentation, and the pursuit of technological and clinical excellence, is supported by rigorous research and interdisciplinary collaboration. This dynamic approach ensures that our technology not only meets current industry standards but also pioneers new applications in medical imaging.

The past year has seen considerable advancements in our service and R&D departments. At the same time, we are expanding our ability to provide services – including software updates, integrations, and bespoke engineering solutions – which we see as a crucial component of our future revenue streams. Several key recruitments to our R&D team have been made, alongside a reorganization, to prepare us to continue expanding boundaries of medical imaging and venture into the POCUS market.

Tapping into a new market: Point-of-Care Ultrasound (POCUS)

In our strategic growth plan, we decided to enter the Point-of-Care Ultrasound (POCUS) market, acknowledging its transformative impact on healthcare diagnostics. POCUS facilitates immediate imaging at the patient's side, streamlining decision-making processes and enhancing patient outcomes. This technology is becoming increasingly vital against a backdrop of an aging population and the rising prevalence of chronic conditions, which necessitate regular monitoring and exert additional pressure on the global healthcare system.

Through automated image acquisition, which we call acquisition intelligence, we aim to enable the use of ultrasound for effective data capture and intelligent interpretation of images, in a process similar to that of lab tests. This advancement would allow for new user groups, without any training in ultrasound, to be able to use POCUS devices – a natural extension of our business's strive to transform the medical imaging market at its core.

Looking forward

Lastly, with an eventful and strong 2023 behind us, where we have shown consecutive growth, I am confident about our strategic direction and look forward to an exciting 2024. I extend my sincere thanks to our employees, partners, customers and shareholders for your dedication and support. Your contributions have been crucial in achieving this milestone year and will continue to propel us forward.

We are excited to build upon our legacy of innovation and excellence in image quality, striving to enhance patient outcomes and enable healthcare transformation.

Thank you for your continued support and trust.

Warm regards, Dr. Dr. Gerald Pötzsch Chief Executive Officer, ContextVision

Point-of-Care Ultrasound: Shaping the future of medical technology

Our investment in Point-of-Care Ultrasound (POCUS) is a testament to ContextVision's enduring commitment to transforming healthcare through technology.

By leveraging our deep-rooted expertise and insightful market analysis, we are well-equipped to extend our product portfolio, enhance our market presence, and make a substantial contribution to more efficient and cost-effective patient care. This endeavor aligns perfectly with our pursuit of continuously pushing the boundaries of medical imaging to improve patient outcomes worldwide.

Following the current dynamics in healthcare – notably the rising prevalence of chronic conditions and the increasing pressure on healthcare staff – there is a clear and pressing need for a transformation in clinical care paths. The shift from focusing primarily on acute, life-threatening conditions to managing and preventing slowly progressing diseases such as metabolic syndrome, cancer, neurodegenerative, and heart diseases is becoming increasingly evident. For instance, in North America, metabolic dysfunction-associated steatotic liver disease (MASLD) ranks as the second leading cause for adult liver transplantation, and the third most common cause of liver cancer. Today, there are 110 million people in North America alone who suffer from a chronic condition, which translates into 800 billion USD spent on healthcare.

A game-changer in real-time medical imaging Amid the rising prevalence of chronic diseases, the emphasis on prevention has become critical. Traditional treatment methods, focused on controlling symptoms in acute phases, are not sufficient enough. Instead, a shift towards lifestyle changes and early medication is essential. Ultrasound imaging, especially through the POCUS approach, plays a pivotal role by offering early insights for preventive measures. It enables clinicians and patients to make informed decisions about necessary interventions, thereby aligning with the urgent need for efficient healthcare solutions and emphasizing the importance of early diagnosis and preventive care.

Point-of-Care Ultrasound (POCUS) represents a transformative technology in this context, providing rapid, on-thespot diagnostic insights for non-trained users, for example

as a tool for physicians in primary care. Distinct from traditional ultrasound, POCUS delivers targeted, real-time data, facilitating immediate clinical decision-making, effective monitoring and unprecedented flexibility in patient care. POCUS is particularly vital for effectively managing the escalating prevalence of chronic conditions within an aging demographic, aligning with the urgent demand for more efficient and effective healthcare solutions.

ContextVision's strategic entry into POCUS

In 2023, ContextVision laid the groundwork for leveraging our four decades of pioneering expertise in medical imaging quality – as well as over a decade of working with AI – to strategically enter the POCUS market. Our ambition is to harness the potential of POCUS to streamline diagnostic processes, aiming to achieve the simplicity and reliability akin to that of laboratory tests. Our technology seeks to democratize medical imaging, extending the reach of advanced diagnostics to a wider array of user groups and significantly enhancing patient care.

With the POCUS market set for significant expansion, our proactive investments and strategic emphasis on developing a user-friendly and technologically advanced POCUS software place us at the forefront of a technological evolution within diagnostics. ContextVision's commitment to excellence and innovation in medical imaging not only aligns with the current needs of healthcare professionals but also proactively anticipates the future requirements of the world population. This ensures our continued leadership and influence in the medical imaging industry, marking us as a key player in shaping the future of healthcare diagnostics.

Market trends and responsive approaches

ContextVision's business is intricately linked with our partners, especially large OEMs, many of whom have their own R&D departments. Our dedication to being an independent provider of image quality uniquely positions us as a strategic partner to these customers. This distinctive market stance is critical in supporting the OEMs' pursuit of excellence, highlighting our crucial role in their operations. We provide both deep algorithm knowledge and extensive clinical application experience, establishing ContextVision as a leading independent provider of image quality solutions with minimal competition in our niche. Our technology is integrated into roughly 415,000 systems globally, significantly impacting daily medical examinations. Facing an annual OEM market potential of about 278,000 systems, we actively adapt to market changes to maintain our industry leadership in medical imaging.

Technological advancements

in imaging with AI integration and connectivity Trend: The integration of Artificial Intelligence (AI) and machine learning is taking diagnostics to the next level with real-time processing and improving the affordability and accessibility of imaging technology. Besides this, improved connectivity related to mobile/wireless networking and cloud services opens up for a more flexible use of the technology. This trend is particularly influential in the development of portable and remote devices, making high-quality imaging solutions more accessible in varied healthcare settings or outside a healthcare facility.

ContextVision's response: ContextVision embraces these technological advance-

ments and continues its efforts to be at the forefront of this digital imaging transformation, continually adapting our technology to meet the evolving needs of the medical imaging industry, including the need for a more portable and flexible use. Today we offer AI-powered solutions as well as a handheld product for ultrasound, Rivent® Mobile.

Demand for customized and high-quality imaging

Trend: The increasing demand for customized imaging solutions with unique, brandspecific features is paralleled by a consistent need for high-quality imaging. This dual demand is driving the development of imaging technologies that offer customization alongside superior image quality.

ContextVision's response: In response to these trends, our algorithms exhibit remarkable adaptability and flexibility, allowing for customization of diverse system data and various image quality targets. Leveraging our deep expertise in medical imaging, we are transforming our role from supplying technology solutions to becoming a collaborative R&D partner.

Rising chronic conditions and demand for routine monitoring

Trend: The shift in healthcare focus from acute diseases to managing chronic conditions is leading to an increased use of imaging as a routine monitoring tool. This trend is driven by the aging population and the growing prevalence of chronic conditions, such as metabolic syndrome-related diseases. These conditions often involve complex comorbidities, requiring frequent and non-invasive evaluations for effective long-term management. This change necessitates adaptable and sensitive imaging technologies capable of regular monitoring and assessment.

ContextVision's response: ContextVision is responding to this trend by tailoring our imaging solutions within POCUS devices to support chronic disease management. We aim to provide OEMs with the tools needed for effective long-term patient care, emphasizing the importance of regular evaluations and monitoring in chronic disease management. Our forthcoming POCUS software is intended to streamline image acquisition and diagnostic processes, thereby eliminating the need for intricate interpretation of images.

Global increase in imaging demand and workforce pressures

Trend: The demand for medical imaging services is increasing globally at an unprecedented rate. Developed countries are experiencing a significant five precent annual growth in imaging services, while developing countries are seeing even higher rates, often 2-3 times faster. This increase in demand is coupled with a shortage of sufficiently trained users creating a challenging environment for healthcare systems worldwide. The surge in imaging needs is straining existing healthcare infrastructure and emphasizing the necessity for efficient and user-friendly imaging solutions.

ContextVision's response: ContextVision's strategy is to provide solutions that cater to the increasing demand for imaging services, ensuring they are accessible, accurate and easy to use, thereby bridging the gap caused by workforce shortages. Furthermore, the ambition is to broaden the usability of handheld devices to non-physicians by simplifying the diagnosis process in certain application areas, which would dramatically transform healthcare efficiency.

Business strategy

Our vision is to enable healthcare transformation by offering proprietary software solutions that enhance the image quality of medical images, leading to faster and more reliable diagnostics and interventions for patients worldwide. To achieve this, our business strategy focuses on image quality, enabling our customers' competitive differentiation, and driving clinical efficiency.

"Recent developments have brought many exciting features to ultrasound, but image quality is still in first place. Clear images facilitate routine exams and allow me to feel confident that I'm providing my patients with the best possible care."

Srecko Rijetkovic, assistant professor, Karolinska Institutet Stockholm, Sweden

Enhancing imaging excellence

Our focus is on refining image attributes such as contrast, noise reduction, and edge definition, which are essential for accurate diagnostics and treatment planning.

Our unique technology is defined by its performance and tunability, independent of hardware.

We position ourselves as providers of premium imaging features, continuously updating our product offerings and leveraging our longstanding relationships with top OEMs.

Supporting customer differentiation

ContextVision has evolved to drive competitive differentiation by creating world-class image quality, uniquely customized to meet our customers' diverse needs.

Our success stems from the versatility of our technology across the entire image processing chain and our profound clinical and technological knowledge. By closely collaborating with our customers, we not only optimize image quality but also drive customer differentiation by offering customized software solutions tailored to their unique needs. Our service engineers play a crucial role in ensuring the seamless integration and implementation of our solutions, resulting in superior image quality that meets the precise requirements of each system. This allows us to both set image quality trends in the medical imaging market and to improve OEMs' time-to-market response.

Driving clinical efficiency

The final strategic pillar focuses on optimizing the entire imaging process to drive clinical efficiency. This aims to reduce variability and human error in image acquisition, making diagnoses more standardized and streamlined.

We are committed to investing up to ten percent of our net sales into developing Minimum Viable Products (MVPs) organically and scaling disease-specific applications through partnerships, possibly supplemented by strategic mergers and acquisitions. This strategy not only aims at streamlining the diagnostic process for clinicians and wider user groups, but also unlocks new clinical revenue streams. With POCUS, we aim to drive clinical efficiency, offering imaging capabilities essential for the effective monitoring and management of chronic conditions.

Gunnar Läthén, Chief Technology Officer, ContextVision

"We bring the toolset currently only available to medical specialists, into the hands of all healthcare professionals."

Gunnar Läthén, Chief Technology Officer, ContextVision

Driving clinical efficiency through Acquisition and Diagnostic Intelligence

The rising prevalence of chronic diseases and increasing pressure on healthcare staff are driving a shift in clinical care from acute to chronic disease management. There is consensus that current healthcare processes require major transformative efforts to manage this effectively, including initiatives such as precision medicine, which builds on a value-based incentivized system.

In a value-based system, acting preventively means finding the optimal point for intervention balanced against future costs for disease management. In this context, medical imaging provides a toolset for early diagnosis and subsequent monitoring. However, most medical imaging equipment available today is optimized for use in late-stage disease management by specialists, who have years of experience and training in image acquisition, interpretation, and diagnostics. For cost-effective and scalable prevention, early diagnostics and monitoring need to be supported early on in the patient care path, meaning that staff at the primary care, or other patient entry points, should be provided with proper tools to guide decision making. Here, POCUS plays a pivotal role for providing deep insights into both anatomy and physiology, while being free from radiation exposure.

The challenge that we target with Acquisition and Diagnostic Intelligence, is to enable the use of ultrasound in this new transformative setting: to enable effective data acquisition, and the intelligent interpretation of the acquired data, for new user groups, typically without any training on ultrasound. This further builds on our previous technology and experience in ultrasound imaging, as a natural extension of current business.

The mechanics behind Acquisition and Diagnostic Intelligence

The idea behind Acquisition and Diagnostic Intelligence is that optimal quality requires a holistic approach, which we view as an optimization problem from the start of data acquisition to the target end-point. For example, in the area where ContextVision is the market leading provider of image enhancement solutions, the end-point is to provide the best possible image quality for visual assessment to each specific customer. To achieve this, it is vital to work closely with our customers to optimize all steps in the imaging pipeline – from probe positioning, to image reconstruction, to final presentation on screen.

Naturally, this optimization process acts differently on individual steps in the imaging pipeline for different endpoints. For example, optimizing data acquisition for visual image quality, tissue differentiation and tissue characterization will result in different optimal settings for the imaging protocol.

This is the core idea behind our approach: by providing customized end-to-end solutions for specific target applications, we enable an overview of the entire process, which is vital for robust, consistent quality output. Therefore, we make ultrasound technology accessible to new users without requiring vast training and experience in specialist areas. We bring the toolset currently only available to medical specialists, into the hands of all healthcare professionals.

Business model focused on partnerships and innovation

Our business model leverages advanced software solutions to enhance medical diagnostics, focusing on ultrasound, radiography, and MRI. By integrating state-of-the-art algorithms and AI, we empower our clients with the best possible image quality, merging technological innovation with deep clinical insights.

Revenue model Built on partnerships

Our revenue model is built to foster durable partnerships and sustained growth. Licensing revenue represents a significant portion, structured to reflect the value delivered through each system our clients build. This volume-dependent model resonates with the lifecycle of medical imaging systems, typically spanning up to 10 years, which provides highly predictable revenues. Our approach extends beyond licensing, encompassing implementation, service contracts, upgrades, and bespoke services, thereby reinforcing our commitment to adaptability and client support. This underscores a strategic alliance with our clients, ensuring mutual progress through collaborative innovation and service excellence. The top ten customers alone account for 77% of our total revenue, a testament to the efficiency of our targeted engagement efforts.

Innovation Driving commitment to superior image quality

Innovation is the cornerstone of ContextVision, propelling the development of unparalleled image quality in medical imaging. Our culture thrives on open discussion, experimentation, and the continuous quest to exceed the known boundaries of technology and clinical application. Through a deep understanding of both explicit and latent customer needs, we forge solutions that redefine diagnostics. Our innovation journey is supported by rigorous research, interdisciplinary collaboration, and a proactive engagement with the latest advancements in AI and image analysis. This relentless pursuit of excellence ensures our technology remains at the forefront, delivering not just improved products but paving the way for groundbreaking applications in medical imaging.

A customer project insight

The process of attaining a seamlessly integrated solution from ContextVision typically takes between 12 and 18 months.

ical relevance.

Business overview

ContextVision's business model is diversified across several key areas, focused on image quality and related services. During 2023, ContextVision has grown 12.2%* compared to the market average annual growth rate of 4.0%, combined for Ultrasound, X-ray, and MRI. Geographically revenue distribution is accounted for the continent of production, not sales. The distribution of our revenue streams across our different segments is as follows.

ContextVision provides stateof-the-art algorithms along with a bespoke customization service. This ensures that the algorithms for image enhancement are meticulously optimized and tailored to meet the specific requirements of each OEM system, thereby elevating image quality. Our products are designed to be configurable, optimized, and fine-tuned according to the unique needs and preferences of each customer. Committed to innovation, ContextVision continuously evolves our product portfolio to meet market demands and advance the frontiers of image quality.

*Not ajdusted for currency effects

Ultrasound Unparalleled image quality – maximum flexibility

ContextVision is the leading independent provider of image quality developed in close collaboration with ultrasound manufacturers. All of our ultrasound products provide reliable, adaptive image enhancement in real time, thanks to highly intelligent algorithms that analyze every pixel/voxel in its context, frame by frame. These algorithms draw on the latest technology to distinguish and enhance true clinical information, while simultaneously suppressing noise and other artifacts.

Our image enhancement solutions are available for all types of ultrasound – from systems that display two-dimensional (2D) image sequences to more complex equipment that examines three-dimensional (3D) volumes, for example in fetal diagnostics or cardiac examinations.

Designed for seamless integration with all types of ultrasound systems and applications – as well as easy customization to individual preferences – each product allows for superior flexibility and a tailored user experience.

ContextVision's image enhancement products made for ultrasound systems are combined in our Rivent platform that consists of:

• Rivent® 2D image enhancement - Rivent® Plus – Premium 2D image enhancement product
• Rivent® 3D – Solution for improving image quality of 3D ultrasound
• Rivent® Mobile 2D image enhancement tailored to handheld devices

Business and revenue overview:

Ultrasound imaging represents Context-Vision's primary revenue source, constituting 76% of our total revenues. Our offerings in this segment are a vital component for diagnostics in radiology, cardiology, women's health, veterinary, and notably, point-of-care applications. Our technology is being used at all different kinds of systems, from larger cart-based to handheld.

Market insights:

ContextVision is an industry leader as an independent supplier for ultrasound imaging with an estimated market share exceeding 20% of our addressable market. Our addressable market is part of the 7.2 billion USD ultrasound industry which is expected to grow at a 4.1% CAGR until 2027. We are especially strong within women's health and radiology where image quality continues to be a key differentiator. Since ultrasound is relatively inexpensive compared to other imaging modalities, there is a general interest in developing more advanced features and application areas within ultrasound. The demand for handheld ultrasound units is surging, reflecting a broader trend towards portable diagnostic tools.

Radiography From image enhancement to diagnostic confidence

The market for radiography systems is multifaceted with many different types of systems, for both static and dynamic imaging, and with many different clinical applications. All of them have in common that ionizing radiation is used, which can cause harm to patients as well as personnel. The principle of ALARA (As Low As Reasonably Achievable) has a high influence on how systems are used worldwide, to ensure that no one is exposed to any unnecessary radiation. Because of this, dose is kept at a minimum with noisy and low-contrast images as a result, where diagnosis can be challenging and time-consuming. Image enhancement aiming at increasing the quality of such images can be of great help in addressing the difficult problem of minimizing dose to the patient while achieving a high-quality image for diagnosis.

ContextVision's latest product platform, Altumira, introduces an important advancement in this area by enabling a significant reduction in radiation doses. Altumira achieves this while simultaneously enhancing the quality of images, addressing the critical balance between reducing patient exposure and maintaining high-quality diagnostic images, thereby streamlining the diagnostic process and improving patient care.

Our flexible image enhancement solutions can be used for any application, ranging from bed-side mobile exams to advanced real-time cardiology interventional exams. It is available for all anatomies and projections, in both human and veterinary examinations.

ContextVision's image enhancement products made for X-ray are combined in the Altumira platform that consists of:

• - Altumira® Designed for static applications
• - Altumira® Plus Designed for dynamic applications

Business and revenue overview:

X-ray is the second largest contributor to our revenue, accounting for 14% of total revenues and encompassing both static and dynamic imaging. Our products offer versatile image enhancement solutions suitable for a wide range of applications, including a robust presence in veterinary medicine, especially in the Americas´ markets. We see a larger proportion of manufacturers in radiography with their own image enhancement solutions. In a price-pressured market, manufacturers are choosing to dedicate their own development resources to the premium segment and are therefore open to external solutions in other segments, which creates opportunities for us.

Market insights:

The total radiography industry exceeds 5.6 billion USD and is experiencing a projected CAGR of 4.0% up until 2027. Our estimated market share in X-ray imaging is just below 10% of our addressable market as an independent image quality supplier. Our strategic focus on dynamic image radiography is aligned with the segment's highest growth areas. This area includes both mobile systems and advanced systems for areas such as examinations in cardiology.

Magnetic Resonance Imaging (MRI)

Setting new standards in reliability and image quality

MRI image quality is directly tied to the strength of the magnetic field: the signal, and thus image clarity, improves as the magnetic field strength increases. This categorizes MRI systems into lowfield and high-field, based on their magnetic strengths.

Low-field MRI imaging typically presents some challenges in terms of low image quality, signal-to-noise ratio, contrast and resolution. High-field MRI imaging, on the other hand, produces relatively higher-quality images, but at a higher cost per patient exam. Shortening the scan time is of great interest for patient experience as well as healthcare optimization and patient throughput; however, shorter scan times result in lower image quality.

ContextVision's image enhancement solution for MRI provides high flexibility in achieving state-of-the-art image

quality for various magnetic strengths and sequence types. We support our MRI customers in areas such as noise reduction, structure definition and contrast, enabling greater diagnostic confidence and increased throughput.

ContextVision's image enhancement solution for MRI is:

GOPView® MRI2Plus – Designed for the unique requirements of each application, sequence type and protocol.

Business and revenue overview:

MRI represents a smaller part of our revenue, accounting for 4% of total revenues, and focuses on enhancing magnetic resonance images. Today, more than 10,000 MRI scanners around the world rely on ContextVision's image enhancement on a daily basis. The licenses within MRI are active for a long time as system lifecycles can span up to 20 years.

Market insights:

The total MRI imaging market amounts to approximately 3.4 billion USD and is expected to grow at a CAGR of 3.8% until 2027. We estimate that we hold a little under 5% market share of our addressable market as an independent provider of in MRI imaging. Our emphasis on improving MRI scan quality meets the growing demand for efficient lowfield MRI solutions.

Services Business and revenue overview:

We provide a range of services constituting 6% of our total revenue. These services include software updates, integrations, implementation projects and other related offerings and engineering services that complement and enhance our software.

We believe that the service segment has a vast opportunity to contribute further to our future growth in both current and upcoming product areas. Our strategy includes enhancing recurring service revenue and developing new professional services to meet evolving market needs. Our formalized services organization is instrumental in expanding our offerings, already showing promising results that highlight their importance in fostering revenue growth and meeting the dynamic needs of our markets.

New business: Acquisition and Diagnostic Intelligence in POCUS

Business and revenue overview:

We are actively exploring new business avenues in Acquisition Intelligence and quantification/decision support. The need for faster, cheaper, more accessible and user-independent monitoring tools is quickly increasing. Our upcoming POCUS software is intended to "automate" image acquisition and simplify measurements replacing complex interpretation of images. While this area is not yet a revenue contributor, it represents our commitment to innovation and a promising growth opportunity for us.

Market insights:

The Point-of-Care Ultrasound (POCUS) segment is rapidly expanding, with a 5.8% annual revenue growth, indicating a shift towards bringing ultrasound diagnostics closer to patients and into new clinical areas. This trend extends to veterinary medicine, where ultrasound's versatility and non-invasive nature make it increasingly popular. Our targeted initiatives, such as Rivent Mobile for handheld ultrasound, are designed to capitalize on these trends, addressing the growing POCUS market and its evolving needs. Moreover, as our ambition is to go a step further and automate image acquisition and analysis, we plan to lead innovation in the POCUS field. This initiative will not only expand diagnostic capabilities but also focus on precise clinical inquiries, setting our methods apart from conventional ultrasound techniques.

Sustainable healthcare: fast and reliable diagnostics for more people

With an aging population set to double by 2050 and chronic conditions on the rise, the demand for accessible and cost-effective healthcare solutions has never been greater. ContextVision is committed to pioneering medical image quality that enables diagnostic improvements, aiming to contribute to a sustainable society with high-quality healthcare for all. This is materialized through our solutions that impact over 245 million patients monthly, all over the globe.

Commitment to the UN Sustainable Development Goals (SDGs)

At ContextVision, we are actively aligned with the United Nations' Sustainable Development Goals (SDGs), targeting the global challenges that confront us today. Our efforts support SDG 3, 9 and 10 – bridging gaps in healthcare availability and quality, and ensuring that everyone, irrespective of their geographic or economic status, has access to top-tier medical care.

We follow the ESG framework to ensure that our actions and policies focus on the environmental, social and governance factors to enhance responsible corporate behavior and long-term success.

Our stakeholders

ContextVision's sustainability work is directly linked to our business, which creates value not only for our customers and owners, but also for our employees and, ultimately, for patients and society at large. This involves an analysis of the unique value propositions and drivers for each stakeholder group. By integrating these diverse perspectives, we aim to ensure that the returns are adequate and equitable for each party, focusing on a balanced Return on Investment (ROI).

Shareholders: Greater investor returns and ESG performance, as well as reduced business risk and financial resilience.

Employees: A healthy corporate environment ensuring employee well-being, benefits and training, in addition to greater Diversity, Equity and Inclusivity (DEI).

Customers, patients and society: Superior medical image quality built on four decades of cutting-edge clinical and technical expertise, developed in close collaboration with our OEM partners and academia.

Environment: Reduced greenhouse gas emissions, energy consumption, and resource depletion, along with greater environmental responsibility and development.

" I meet up to 30 patients every day and I want to provide the best possible care for all of them. High quality images contains the answers I need for accurate diagnoses and individually tailored treatments."

Martin Jansson, MD Radiology Praktiktertjänst Clinic, Stockholm Sweden

"I appreciate the opportunity to work closely with the end product and understand all the components involved, something that's less feasible in larger companies where I've previously worked. Thanks to our size and collaborative atmosphere, I can see the direct impact of my work on our products, as well as how my contributions help shape the company"

Martin Evaldsson, Software Engineer at Research and Development at ContextVision

The Point of Care Ultrasound (POCUS) represents a leap towards equalizing healthcare by enabling immediate diagnostic capabilities also in remote areas. It reduces the accessibility gap in medical services, particularly in settings where healthcare resources are limited, or emergency departments are overwhelmed. Our commitment to POCUS highlights our ambition in shaping a future where high-quality healthcare is a universal standard, not a privilege.

Environment

At ContextVision, we recognize the importance of reducing environmental impact, both as individuals and as a company.

• Energy efficiency and 100% fossil-free electricity in our Stockholm office.
• Sustainable travel policy: All travel within Sweden is by train, aligning with our commitment to lower carbon emissions.
• Eco-friendly office initiatives: Our offices recycle paper, bio-waste, metal, plastics, batteries, and lamps, and use LED lighting to conserve energy.
• Resourceful repurposing: Office furniture and hardware are repurposed for second-hand use, reflecting our dedication to resource conservation.
• Our office is leased through Fabege, ranked as Northern Europe's most sustainable real estate company in the office sector in the GRESB sustainability evaluation 2022.

Reducing our negative environmental impact

While ContextVision's environmental footprint as a software development company is inherently small, we actively strive to improve our energy efficiency and reduce carbon emissions. Our commitment to environmental stewardship is integrated with our drive for technological innovation. In line with this, our efforts to lower radiation doses in X-ray imaging – while maintaining image quality excellence – not only advance patient safety but also reduce our environmental footprint by conserving the energy and resources required for diagnostic processes. Recognizing that there is always room for improvement, we strive to address indirect emissions related to energy consumption. We understand that our journey towards environmental responsibility is an ongoing process, and we are committed to continually evaluating and improving our energy use practices.

With our headquarters in Sweden and a global reach in operations and collaborations, we are conscientious about minimizing our carbon footprint. Our centrally located offices in Stockholm and Linköping allow co-workers to easily reach their workplace by public transportation. Adhering to our internal travel policy, we ensure that most in-country travel is conducted by train, significantly reducing our travel-related carbon footprint. We have also developed smarter ways of working to cut down on business travel, making the most of digital tools without losing the benefits of faceto-face meetings.

People and society

At ContextVision our goal is to provide a positive, innovative environment for our employees and partners so that we together can continue to be a driving force to enhance quality of life in society at large.

• • A positive working environment: In 2023, our employee Net Promoter Score (eNPS) reached 36, significantly surpassing the average index of 14 for all enterprises.
• • Proactive work environment Management: We continuously manage our work environment and offer biennial health checkups to our employees – with the next scheduled for 2024 – emphasizing our focus on preventative healthcare.
• • Employee wellness allowance: All employees are offered this allowance, demonstrating our commitment to their health and happiness.
• • Promoting healthy sleep patterns: In 2023, we initiated a trial to help employees monitor and improve their sleep patterns, contributing to better overall health and productivity.
• • Innovation: We promote innovation through recurring forums and meetings throughout the year. During 2023, we dedicated a day to Innovation, where all employees worked together in cross-functional teams to explore, learn, and brainstorm different topics.

Valuing our people and extending our social impact

At the core of our business are our employees. Their well-being and a healthy working environment are paramount. Our team's contributions extend beyond the company, impacting society through the development of innovative software solutions.

At ContextVision, we understand that the essence of our business lies in the professionalism and quality brought by our employees. Possessing the right blend of skills, abilities, experience, and values is crucial for our team members.

We nurture a culture of continuous development and collaboration, where teamwork is balanced with autonomy. We believe that trust in our employees sparks creativity and curiosity, pushing the boundaries of innovation.

By continuously staying ahead of technological advancements, we not only elevate medical imaging quality but also transform patient care globally

Gerald Pötzsch, CEO of ContextVision

Celebrating ContextVision's and employees' anniversaries

In the autumn of 2023, ContextVision marked its 40th anniversary by honoring the company's most valuable asset: its dedicated colleagues. As a gesture of gratitude, ContextVision gave employees the opportunity to support charitable causes. For every five years of service, team members received 1,000 SEK to donate to a chosen charity from a selected list including Doctors without Borders, the Red Cross, the Swedish Childhood Cancer Fund, the Swedish Brain Foundation, and the Swedish Heart-Lung Foundation. This initiative allowed 16 employees, with tenures ranging from five to over 30 years, to contribute to these organizations, aligning with ContextVision's goal of fostering global healthcare transformation.

Guided by six core values

Customer focus: Our long-standing international customer relationships are built on trust and respect. Our success depends on understanding the needs of our customers.

Result orientation: We prioritize long-term sound business. We achieve our goals by focusing on customer delivery. Transparency is of paramount importance. We adapt quickly to new circumstances.

Confidence: We are proud of our company and its products. We believe that anything is possible, and we are not afraid to test new ideas. We take advantage of the lessons we learn by having the courage to try new things.

Innovation: Innovation requires not only technology, but also new perspectives and we promote diversity of thought. We test our ideas with scientific methods and are not satisfied until we know why something does or does not work.

Teamwork: Our success is based on professional teamwork. We are open to different points of view. We treat each other with respect, are constructive and believe in consensus.

Atmosphere: Our respect for all people creates an inclusive atmosphere. We value that we represent different cultures and experiences. We share our enthusiasm and our knowledge – and celebrate our successes together.

A positive working environment

We are committed to fostering a working environment and atmosphere that prioritizes health and well-being. Our aim is to create a workplace where every individual is stimulated, encouraged, and feels supported, safe, and respected.

We actively monitor workloads and support activities that promote health and well-being, alongside team-building activities that strengthen our social fabric. Whether it's after-work gatherings, Christmas dinner, ContextVision's 40th anniversary celebration, or other social engagements, these moments contribute to a positive and inclusive work environment and culture.

Our approach to long-term health includes being proactive and responsive to the needs of our employees. Flexibility is key in our work culture to support a healthy worklife balance.

We are proud to report that in 2023, our employee Net Promoter Score (eNPS) was 36 – significantly higher than the average index of 14 for all enterprises – with an impressive response rate of 91%. This high eNPS score is a testament to our positive workplace environment, with particular strengths in Meaningfulness (8.2), Team Spirit (8.1) and Commitment (8.0).

Health and safety

At ContextVision, we believe that a healthy company is characterized by healthy employees. Every two years, we offer all employees a comprehensive physical examination. Additionally, we regularly assess our employees' engagement, workload, and well-being across nine different areas. A testament to the effectiveness of our proactive health measures is our remarkably low level of sick leave. A culture that prioritizes employee well-being, including mental and physical health, ensures our team remains resilient and engaged.

We continuously manage our work environment in compliance with the AFS 2001:1 standard, ensuring a safe and healthy workplace for all employees. Our Health and Safety Committee systematically manages our working environment by identifying risks, establishing long-term action plans, and implementing immediate measures when necessary. The committee conducts an annual review encompassing policy and procedure evaluations, skills assessments, employee survey follow-ups, risk assessments, and incident reporting. This comprehensive process ensures continuous improvement in our health and safety performance.

ContextVision monitors employee health and well-being through weekly temperature measurements

Based on Winningtemp pulse survey results for 2023 with 91% response participation.

Diversity, equity and inclusion

Diversity, equity and inclusion are integral to our business. We ensure that all job applicants, whether for internal or external positions, are given equal opportunities and are assessed on an equitable basis.

Our team is composed of individuals from many different parts of the world. This diversity is one of our greatest strengths, especially when it comes to understanding and relating to our customers and partners. We take pride in our ability to attract international talent and are dedicated to supporting their integration into both our organization and the broader Swedish society. Our multinational nature is not just a testament to our inclusive work environment; it also enhances our capabilities and perspectives, making us a stronger, more versatile company.

Karin Lindbom, Head of HR, on the importance of employee well-being and what attracts top talent to ContextVision.

"Being at the forefront of innovation in healthcare, ContextVision provides employees with the opportunity to contribute to groundbreaking advancements that have a meaningful impact on people's lives."

Building a healthy workplace culture involves a combination of factors. Firstly, a vision that aligns with our employees' values. Secondly, open communication channels, where everyone feels heard, valued, and included, supporting collaboration and a sense of belonging.

Finally, we believe that autonomy and trust are paramount. Empowering our employees with autonomy leads to creativity and ownership of their work. Trusting our teams to make decisions enables a culture of accountability, where individuals feel confident in taking calculated risks. This approach not only enhances job satisfaction but also contributes significantly to our core values.

The combination of our dynamic and challenging projects in the med tech sector – along with Sweden's reputation for a high quality of life, excellent work-life balance, and a robust social welfare system – positions us as an appealing employer for top talent worldwide.

Integrity

At ContextVision we maintain high ethical standards and transparency, fostering responsible growth and innovation driven by the patient's best interest.

• • Code of Conduct: Our commitment to ethical business conduct relies on robust policies and measures in place to prevent corruption and bribery.
• • Certified Quality System: Our quality system is rigorously maintained and certified to EN ISO 13485:2016 standards, ensuring compliance with the highest industry requirements.
• • Our GDPR Compliance Policy, rooted in a commitment to personal integrity, directs our employees on data handling to protect customer and partner privacy and security.
• • Participation in Cyberly Network: Since 2023, we have been an active member of Cyberly in Sweden, a network dedicated to strengthening companies' digital resilience.

Upholding integrity and driving innovation

We are dedicated to maintaining the highest standards of integrity and ethical practices, which are fundamental to our governance structure. These guiding principles shape our decision-making and ensure that our business not only grows but does so responsibly. Our focus on innovation is integral to our governance, driving sustainable growth and technological advancements.

In line with medical device regulations and other relevant standards, ContextVision has established a robust quality system, certified to EN ISO 13485:2016, ensuring compliance with the highest industry requirements. Our quality assurance processes are meticulously designed to enhance product safety and efficiency at all stages, from development to post-delivery.

Annually, our quality efforts undergo rigorous assessments to ensure compliance with industry standards and regulations. Both internal and external certification audits help us identify and rectify any areas of improvement.

We implement a comprehensive Quality Policy, underpinned by detailed internal procedures. Our Post-Product Market Team is led by our Quality Assurance Manager, and we acknowledge that every employee plays a crucial role in upholding our Quality Policy. As such, we are committed to providing comprehensive training and coaching to foster a high level of quality awareness and expertise across our team. Understanding and addressing our customers' needs is essential, and we value the trust and respect fostered through our long-standing international customer relationships. Our focus remains on delivering excellence and maintaining long-term, sustainable business relationships.

Our Code of Conduct

ContextVision's Code of Conduct is centered on promoting ethical behavior, integrity, trust, and responsibility. We adhere strictly to competition, environmental, labor, and safety laws, as well as other regulations pertinent to our business operations. This extends to financial reporting compliance, employment terms, employee rights, product safety, and confidentiality. We maintain a zero-tolerance stance on corruption and actively work to prevent it within our organization and amongst our partners. ContextVision firmly supports and respects international human rights conventions and complies with local labor laws. We are committed to creating a workplace free from harassment and abuse, promoting diversity and equal treatment for all.

Susanne Staffansson, Sales Director Europe, shares the significance of trust and respect in establishing enduring partnerships, emphasizing the pivotal role of corporate governance.

"ContextVision has a well thought through and thoroughly implemented governance practice, that ensures that we always comply with regulatory requirements and ethical standards in our work processes. I am confident that this is one of the reasons that ContextVision has been synonymous with image quality and service excellence for over four decades."

ContextVision operates within a highly regulated industry, where corporate governance is key, and our success hinges on our ability to comprehend the needs and requirements of our customers. We prioritize quality, product safety, and effectiveness above all. Understanding the expectations and requirements of our customers and stakeholders is crucial in ensuring that we meet the highest standards.

Our ambition is for all our customers to become long-term partners. Looking at our current customer base, all of them are, or have the potential to be, longterm engagements. While some customers have only recently joined us, our largest customers, representing 70% of our revenue, have been partners for an average of 13 years.

Administration Report

The Board of Directors and the CEO of ContextVision AB (publ), registration number 556377-8900, hereby submit the annual report and the consolidated accounts for the fiscal year Jan 1, 2023 – Dec 31, 2023. All figures are in SEK if not stated differently. ContextVision AB (publ) is based in Linköping, Sweden and is the Parent Company of the Group. The company is listed on the Oslo Stock Exchange since 1997.

ContextVision is a medical technology software company specializing in image analysis and imaging for medical systems. ContextVision is the global market leader in image enhancement and a software partner for leading medical image technology manufacturers worldwide. Its groundbreaking technology helps doctors accurately interpret medical images, a crucial foundation for better diagnosis and treatment. Already an industry pioneer more than 30 years ago, ContextVision has over the past years invested heavily in research and development. The initiative aims to develop new applications using the latest technology, such as artificial intelligence. These major investments in research and development create new conditions for success during the coming years.

Significant events during the year

In May 2023, it was decided at the Annual General Meeting to distribute a cash dividend of SEK 0.30 per share, divided into two tranches of SEK 0.15 each, to the shareholders of ContextVision. The dividends were made in May and November 2023, respectively.

Board member Magne Jordanger informed that he was not available for re-election.

Richard Hallström was appointed as the new

Chief Financial Officer (CFO) at ContextVision. Richard has extensive experience in leadership roles, previously serving as CFO for ScandiNova Systems and Global Stoneridge Electronics.

A Growth program was initiated to look for opportunities adjacent to the Image Quality market. Preparations were made to strengthen R&D to support the Growth program, while the services organization was formalized to ensure delivery and expand on our service offerings.

ContextVision celebrated its 40th anniversary since starting out in 1983 in Linköping, Sweden. Since then, ContextVision has time and time again set new standards in medical image enhancement and broken new ground in the field.

ContextVision's X-ray product portfolio was enhanced with advanced features, elevating image quality while minimizing radiation dose exposure. Altumira® now provides scatter correction and and Altumira® Plus stronger noise reduction, both powered by AI.

During the year, ContextVision engaged with leading healthcare professionals, researchers, and OEMs at key gatherings, including the European Society of Radiology (ECR) congress in Vienna in March 2023 and the CMEF conference in Shanghai in May 2023. At the Radiological Society of North America (RSNA) conference in Chicago in November 2023, the focus was on the enhanced Altumira series for X-ray, alongside our full range of solutions.

ContextVision embarked on an expansion into the Point-of- Care Ultrasound (POCUS) market, leveraging the potential of deep learning, a subset of AI, to enhance realtime image interpretation and acquisition intelligence in POCUS machines. To support this strategic direction, the company-initiated preparations and formed a dedicated team, with ongoing recruitment and external collaborations to strengthen its capabilities in this emerging and impactful field for improving healthcare outcomes.

ContextVision showed continued growth and profitability, with an increase in net sales of 12.2% and profit margin of 31.2%, reaching record-high net sales. ContextVision continued to strengthen its operations by securing new contracts and enhancing existing partnerships with major OEMs, resulting in new licensing revenue streams for the coming years.

Board and management

At the Annual General Meeting in May 2023, Olof Sandén was re-elected Chairman of the Board, while Martin Hedlund, Sven Günther-Hanssen and Martin Ingvar were re-elected as Board members. Magne Jordanger informed that he was not available for re-election. The Board had 4 members during 2023, all of whom were men. A total of 11 Board meetings were held during the year.

	No. of	Holding
Board member	meetings	2023-12-31
Olof Sandén (Chairman)	11	3,000
Martin Hedlund	11	8,316,660
Sven Günther-Hanssen	11	8,516,670
Martin Ingvar	11	12,000

CEO Gerald Pötzsch attended 10 out of 11 meetings, and owned as of 2023-12-31, 25,000 shares in the company

Annual General Meeting

On May 3 2023, ContextVision held its Annual General Meeting, AGM, in Stockholm.

• The annual report and audit report regarding 2022 was presented and approved by the AGM.

• Disposition of financial results according to the proposal from the Board of Directors was approved.
• The CEO and the Board of Directors were discharged from liability.
• The Remuneration report for the Board of Directors and senior executives was approved.

• Remuneration guidelines to senior executives according to the proposal of the Board of Directors were approved. Board compensation was decided according to the following:

• The chairman of the board will be paid SEK 350,000 for the period until next AGM. • Other members of the board, whom are not also main shareholders, will be paid SEK 230,000 for the period until next AGM.

• The audit fee was decided to be based on the current account.
• Martin Hedlund, Sven Günther-Hanssen and Martin Ingvar were re-elected as members of the Board and Olof Sandén was re-elected as Chairman of the Board.
• Grant Thornton Sweden was elected as auditor.

Legal proceedings

ContextVision has not been involved in any legal processes during 2023.

Financial information Revenue

In 2023, net sales increased by 12.2 percent, amounting to MSEK 132.2 (117.8). The change was driven by higher license and service revenue as well as positive currency effects.

ContextVision is affected by changes in exchange rates for EUR, USD, and JPY against SEK, as the company's billing is mainly in these currencies while most of the costs are in SEK, followed by USD and EUR. In 2023, changes in exchange rates had an average positive impact on net sales of 5.4 percent. A financial risk policy established by the board provides the framework for how the company manages financial risks. See note 24 for details on sensitivity analysis.

Operating result

In 2023, the operating result for continuing operations decreased to MSEK 40.0 (41.1), corresponding to an operating margin of 30.3 percent (34.9). The result for continuing operations in 2023 is lower than the result in 2022, due to increased investments in 2023 related to future growth areas.

Personnel

At year-end, ContextVision had a total of 40 (35) employees in the group, of which 38 were employed in Sweden and one each in the United States and China. The average number of employees in the group during 2023 was 41 (37) people. Of the total of 40 employees at year-end, 16 work in research and development, 16 in sales, marketing, and customer support, and 8 in management, administration, and regulatory affairs. ContextVision's development office is located in Linköping, Sweden, and the sales and marketing office is in Stockholm, Sweden. On average, 31 percent of the company's employees were women in 2023, and 69 percent were men.

Personnel costs for research and development amounted to MSEK 13.1 (15.0) during the year. During the year, ContextVision capitalized on development costs with MSEK 0.1 (3.7), of which MSEK 0.0 (1.8) related to capitalized personnel costs. A central part of ContextVision's strategy is a strong focus on innovation, and through investments in research and development, the foundation is laid for the next generation of products. In 2023, ContextVision continued to invest in both existing and future products. Capitalized development costs represent the final part of the process from research

to finished product.

Incentive program

In 2011, the board and management of the company introduced an incentive program for all employees by establishing a profit-sharing foundation. The program's aim is to create common goals for all employees by setting aside a portion of the company's surplus to a profit-sharing foundation, provided that certain defined goals are achieved. The goals are related to sales, customer relationships, product development, and research projects. The funds in the profit-sharing foundation are invested in ContextVision's shares.

For the period 2019–2022, the foundation had acquired 203,203 shares in ContextVision and held 2.820 in Inify Laboriaties as of December 31, 2023. For 2023, the allocation to the foundation is MSEK 1.6, and share purchases will take place during 2024. In accordance with the foundation's rules, the shares from the 2018 allocation (a total of 70,700 ContextVision shares and 7,070 Inify Laboratories shares) were sold during 2023, and the return from the sale was distributed to the employees.

Financial position

ContextVision's balance sheet total was MSEK 103.1 (97.7) as of December 31, 2023, and the equity ratio was 75.4 percent (68.1 percent). The change in the consolidated balance sheet total and equity ratio is primarily explained by a positive result, partly offset by a cash dividend of MSEK 23.2 during the year. At the end of the year, short-term receivables amounted to MSEK 26.7 (35.0), mainly comprising customer receivables. ContextVision has no loans.

Cash flow and liquidity

In 2023, the cash flow from operating activities increased to MSEK 44.7 (25.9). The increase is mainly explained by change in working capital. The cash flow from investment activities amounted to MSEK -6.0 (-5.3). Investments in intangible fixed assets amounted to MSEK 0.1 (3.7) and consisted of capitalized development expenses for personnel of MSEK 0.0 (1.8) and other costs of MSEK 0.1 (1.9). The cash flow from financing activities amounted to MSEK -22.5 (-25.7). During 2022 a transfer of liquid funds of MSEK 20.5 to the wholly-owned subsidiary Inify Laboratories AB in connection with the dividend was made, and in 2023 a cash dividend of MSEK 23.2 was made. The cash flow for the year amounted to MSEK 16.3 (-5.1), and as of December 31, 2023, the Group's liquid funds amounted to MSEK 58.1 (41.9).

Capitalization of development expenses

ContextVision is a research and developmentoriented company that invests heavily in the development of various software solutions in image analysis and image-based medical applications. As of December 31, 2023, 16 employees were engaged in research and development, corresponding to 40 percent of the total number of employees.

Development expenses totalling MSEK 0.1 (3.7) were capitalized. Expenses related to research undertaken with the prospect of gaining new scientific or technical knowledge in the Group's operations are expensed as incurred. Development projects where knowledge and understanding gained from research and clinical experience are directed towards producing new products, are recognized as intangible assets only when the product development meets the requirements for capitalization according to IAS 38, see note 1 for further information.

The company's capitalized development expenditure for 2023 relates to a total development project, AI Inference.

In the fourth quarter 2023, ContextVision updated its policy and decided to adopt TRL (Technology Readiness Level) 6 as definition for capitalization of product development, meaning a technology prototype demonstration in a relevant environment needs to be in place. This is a slightly more conservative approach than previously used and classifies as a change in an accounting estimate (IAS 8 §36) used in the period of the change and future periods.

Depreciation

In 2023, total depreciation for continued operations increased by 11 percent to MSEK 8.8 (7.9). Depreciation on leased assets amounted to MSEK 4.5 (4.5). Depreciation on capitalized development expenses for continued operations increased by 17.9 percent to MSEK 3.3 (2.8). The increase is mainly related to annualization effects in 2023.

The depreciation period for development expenses is five years, and linear depreciation is applied over the useful life from the time the product is launched. Regarding all capitalized development expenses, value in use has been calculated to ensure it does not fall below the carrying amount.

Period's results and earnings per share

Profit after tax for the remaining operations in 2023 amounted to MSEK 32.7 (33.3), which means that earnings per share amounted to SEK 0.42 (0.43). The tax expense for the year amounted to MSEK 8.4 (7.7).

The Group and the Parent Company

The Group consists of the Parent Company ContextVision AB (publ) and the wholly-owned American subsidiary ContextVision Inc.

The Parent Company ContextVision AB (publ) has its registered office in Linköping, Sweden, where the R&D department is located. Sales, marketing, and company management are managed from the office in Stockholm. All external sales are generated by the Parent Company.

The subsidiary ContextVision Inc had one employee at year-end, and its office is in Naperville/Chicago, Illinois, USA. The employee is responsible for sales and customer support to US customers, thereby maintaining the company's local presence. The subsidiary represents a limited part of the Group's operations. No external sales are generated by the subsidiary.

Significant events after the balance sheet date

No significant events have occurred after the end of the year.

Outlook for 2024 and onward

Going forward, the company will again focus its operations on the development of innovative products for the medical imaging market and on being a trusted supplier to large global manufacturers within the business area.

ContextVision will also continue its expansion into the POCUS market, leveraging the potential of deep learning, a subset of AI, to enhance real-time image interpretation and acquisition intelligence in POCUS machines. Looking ahead, ContextVision will accelerate these investments in 2024.

Proposed appropriation of profit, Parent Company

At the general meeting's disposal (SEK)	2023
Retained earnings and fair
value reserve	19,909,341
Profit/loss for the year	32,764,584
	52,673,925

		The Board proposes:

Profit carried forward	52,673,925
------------------------	------------

Risks and uncertainties

ContextVision's major risk factors include business risks connected to the general global financial situation, to the level of healthcare investment on different markets, currency exchange risks, the company's ability to recruit and keep qualified employees and the effect of political decisions.

Consolidations within the medical industry occur on a regular basis which may change the customer's situation. Besides consolidations, new players enter the market and challenge the established actors. The trends above represent both threats and opportunities for ContextVision.

Operational risks

The operational risks are mainly identified as a dependency on major customers, where more than 65 percent of the company's revenue is generated from less than 10 different customers.

Seasonal or productional variations

The company is in general not affected by seasonal variations, but highly dependent of the production rate and product cycles of its customers. If customers are for example delayed in the launch of a new product/system there will be a corresponding delay in their purchase of software licenses.

The sales process for new products and upgrades is usually very long, as the process for integration of a new product into the customer's production line must be adapted to the customer's overall plans and resource allocation.

Macroeconomic and geopolitical risks

ContextVision is exposed to macroeconomic factors and geopolitical risks. These include increased inflation and interest rates as well as geopolitical tensions. Increased inflation and interest rates may cause a recession or affect customers' willingness to buy products due to reduced demand, but also influence financing costs in general. Geopolitcal conflicts could potentially create a instability on the market ,affecting customers'production and sales.

Research and development

ContextVision develops advanced and specialized software for medical image enhancement, and the company assumes the risk during the research and product development phase. The management performs continuous project follow-ups and quality assurance to minimize the associated risks.

The ability to follow the market trends and identify new market needs is crucial. This is continuously analyzed within product teams as well as management. Close collaborations with customers also contribute to identifying and analyzing upcoming needs and trends.

Personnel

The company is dependent on highly qualified employees, which could be considered as a risk factor when it comes to key employees. Since ContextVision during the latest years have invested in development of new technology, the company is dependent on its ability to recruit, develop and keep skilled employees.

Financial risks

A financial policy adopted by the Board of Directors constitutes the framework for how the company manages financial risks. The company has clear mandates and limits for financial activities.

The Group's financial instruments consist of cash and bank deposits, accounts receivable, accounts payable, other short-term liabilities relating to operations and derivatives (forward exchange contracts). See note 24 for further information on financial risks.

Interest rate risk

The Group's market risk exposure relates only to holdings at bank accounts, the company has no loans or other obligations that can implicate an interest rate risk.

Currency risk

During 2023 the invoicing in EUR represented

62 percent (61) of total invoicing, where invoicing in USD represented 24 percent (26), and the invoicing in JPY represented 13 percent (13). The company does not foresee any major changes in the distribution between currencies during the coming year compared with 2023.

Since all sales are invoiced in foreign currencies, while the main part of the costs is in SEK, the company is sensitive to currency exchange rates. The Group does not currently hedge its foreign currency exposureon a regular basis, but still has existing contracts that will mature in mid 2024. Going forward, the Group does not plan to enter into new hedging contracts. Please refer to note 24 for further details regarding the sensitivity analysis.

Credit risk

In connection with the signing of a customer agreement, an individual assessment of the solvency of that customer is conducted. When there is some concern as to a customer's solvency, a letter of credit or pre-payment is used. Existing customers' solvency is regularly monitored and evaluated to detect any changes in credit risks well in advance.

Five Year Summary

SEK K	2023	2022	2021	2020	2019
Consolidated results and financial position from continued operations
Net sales	132,193	117,825	98,099	94,746	95,312
Operating result	40,036	41,133	44,483	47,757	34,257
Result after financial items	41,262	41,045	44,385	47,629	34,054
Net result from continued operations	32,729	33,319	34,884	37,795	26,491
Discontinued operations
Net result from discontinued opera tions, note 21	–	-4,527	-42,537	-25,717	-19,093
Net result from continued operations and discontinued operations	32,729	28,791	-7,653	12,080	7,398
Consolidated Balance Sheets
Intangible fixed assets	6,330	9,541	8,622	23,720	20,822
Tangible fixed assets	3,340	3,700	3,736	2,221	2,677
Right-of-use assets	5,903	5,161	10,008	5,879	9,461
Financial fixed assets	926	1,254	704	394	522
Current assets	86,658	78,082	55,808	73,806	59,330
Assets for dividends to shareholders	–	–	31,753	–	–
Total assets	103,159	97,738	110,632	106,020	92,812
Equity	77,825	66,529	37,803	79,782	66,136
Long-term liabilities	446	146	146	2,875	1,560
Non-current lease liabilities	1,513	1,881	4,854	1,593	4,734
Short-term liabilities	19,706	26,636	31,844	18,281	16,476
Current lease liabilities	3,668	2,546	4,232	3,489	3,906
Dividends to shareholderss	–	–	31,753	–	–
Total equity and liabilities	103,159	97,738	110,632	106,020	92,812

SEK K	2023	2022	2021	2020	2019
Cash flow
Operating activities	44,749	25,889	17,597	22,315	25,076
Investing activities	-6,005	-5,300	-12,904	-8,731	-23,029
Financing activities	-22,457	-25,662	-4,120	-3,557	-3,663
Change in cash and cash equivalents	16,287	-5,073	573	10,027	-1,616
Key ratios continued operations
Equity ratio, %	75,4	68.1	34.2	75.3	71.3
Operating margin, %	30,3	34.9	45.3	50.4	35.9
Profit margin, %	31,2	34.8	45.2	50.3	35.7
Return on equity, %	45,3	63.9	59.3	51.8	42.5
EBITDA	48,870	49,079	50,301	53,945	41,863
Average no. of shares				77 367 500 77,367,500 77,367,500 77,367,5001) 77,367,5001)
Result per share	0,42	0.43	0.45	0.49	0.342)
Result per share after dilution	0,42	0.43	0.45	0.49	0.342)

Share price (NOK) Dec 31 7,7 9.1 16.1 22.1 10.42)

1) Increase in the total number of shares due to a share split (10:1) in August 2020. 2) The numbers have been re-calculated for the comparision periods due to a share split.

ContextVision presents certain financial measures in the financial statements that are not defined under IFRS. ContextVision believes that these measures provide useful supplementary information to investors and the management as they allow for evaluation of the ContextVision's performance. Because not all

companies calculate the financial figures in the same way, these are not always comparable to measures used by other companies. These financial measures should therefore not be considered to replace those by IFRS.

CALCULATION OF KEY RATIOS, SEK K	2023	2022
Equity ratio
Equity at period end	77,826	66,529
Total assets	103,159	97,738
Equity ratio, %	75,4	68.1
Operating margin continued operations
Operating income	40,036	41,133
Non-recurring items	-	-
Net sales	132,193	117,825
Operating margin,%	30,3	34.9
Profit margin continued operations
Result after financial items	41,262	41,045
Net sales	132,193	117,825
Profit margin	31,2	34.8
Return on equity continued operations
Net result	32,729	33,319
Average equity	72,177	52,166
Return on equity, %	45,3	63.9
EBITDA continued operations
Net results	32,729	33,319
Interests	-1,227	88
Taxes	8,533	7,726
Depreciation and impairment	8,834	7,946
EBITDA	48,870	49,079
Earnings per share continued operations
Net results	32,729	33,319
Average number of shares, amount	77 367 500	77,367,500
Earnings per share after tax, SEK	0,42	0.43

Key ratios	Definitions	Purpose
Equity ratio	Equity as a percentage of total assets	The equity ratio shows the Group's long term ability to pay its debts and is a complement to other key figures. It helps investors assess the possibility of dividends.
Operating margin	Operating income excluding non recurring items as a percentage of annual net sales	The operating margin is helpful for investors when assessing the Group's potential for dividends.
Profit margin	Result after financial items as a per centage of annual net sales	The profit margin shows the Group's results per SEK revenue, and is of interest for both the company and for investors.
Return on equity	Net results as a proportion of average equity, where average equity is calculated as equity at the beginning of the period plus equity at the end of the period, divided by two.	Return on equity shows the Group's results in rela tion to equity, and provides investors with additional information regarding the Group's profitability.
EBITDA	Earnings before interest, taxes, depre ciation and amortization	EBITDA shows the Group's underlying development, which is valuable as an indication of the Group's underlying cash-generating capacity.
	Earnings per share Net result for the year as a percentage of the average equity	Earnings per share is a measure of the Group's earnings per share during the reported period and facilitates comparisons between periods

Corporate Governance Report

ContextVision AB (publ) is registered in Sweden and is controlled by its Articles of Association according to the Companies Act in Sweden. Since 1997, the company is listed on the Oslo Stock Exchange under the ticker CONTX and operates under Oslo Stock Exchange rules & regulations. ContextVision complies with the majority of applicable guidelines and procedures, which are stipulated in the Norwegian Code of Practice for Corporate Governance, issued October 17, 2018. The deviations are explained in this document.

This Corporate Governance Report includes the measures implemented for the efficient management of and control over Context-Vision's operations. The Board of Directors and the executive management of ContextVision are dedicated to managing shareholders' and other stakeholders' demands for effective business operations, which shall be run independently by the Board of Directors and the executive management.

Business

The company shall carry on the development, production, marketing, and sales of products for digital images, aiming at increasing the value of the images or sequences of images through image enhancement or image analysis. Corporate values and ethical guidelines have been updated and documented. In general, being a company providing products and solutions in the health care market, we are driven by the patients' best interests. If there are reasons to believe that certain actions do not follow our

corporate values or involve other unethical behaviour related to the company's activities, there are procedures in place to address such issues.

Equity and dividends

The company is to have an equity capital at a level appropriate to its objectives, strategy and risk profile. Presently the strong cash balance is appropriate to fund the future growth ambitions. The Board of Directors is regularly informed of the equity to ensure it is on an appropriate level.

Equal treatment of shareholders and transactions with close associates

ContextVision has only one share class, whereby all shares have equal voting rights. Transactions carried out in own shares are managed by a third party through the stock exchange. The company employs the services of Norne Securities AS who acts as market maker for the company's shares. The function of the market maker is to ensure liquidity is maintained in the company's shares. The market maker guarantees to buy or sell shares within certain limits, according to sales orders and purchase orders on the market, without affecting the market pricing of the share. The operation of the market maker is surveyed by the Oslo Stock Exchange.

Executive management and Board members are instructed and obliged to notify the Board if they have any material interest in any transactions entered by the company.

There are two individual shareholders, representing 10 percent or more each of the company, see table on page 41 for details.

Freely negotiable shares

There is no form of restriction of the negotiability of the shares in the company's articles of association.

Annual General meeting

The General Meeting is the company's supreme decision-making body. Notice of General Meeting is distributed four to six weeks before the date of the meeting by announcement at the stock exchange and in Swedish press, along with e-mailed invitations to shareholders. Enclosed is the procedure a shareholder must observe in order to participate and vote at the General Meeting. All information related to the General Meeting is kept available at the company's offices and is also provided on the company's website. The Articles of Association stipulate, and the Swedish Companies Act regulates the annual General Meeting according to Swedish law.

The Chairman of the General Meeting is elected by the General Meeting; this is considered sufficient to ensure the independence of the Chairman. The code of practice recommends the use of a nomination committee, which the Board does not intend to do. Because of the relatively strong shareholder concentration, a nomination committee is considered ineffective. In ContextVision nomination of members of the Board is handled by the Chairman of

ContextVision's Corporate Governance structure

the Board.

There is no specific audit committee within ContextVision. Such a committee is regarded inefficient, taking into account of the small size of the company. To comply with the rules of the Swedish Companies Act, the company has chosen to let the Board as a whole perform the tasks required of the Audit Committee.

The AGM is to be held within six months of the end of the fiscal year to resolve matters including adoption of the income statement and balance sheet, as well as the allocation of profit. There are no special provisions regarding the function of the General Meeting in either the Articles of Association or in shareholder agreements. There are no specific rules in the company's Articles of Association for the procedure of electing or dismissing Board members, nor for changing the Articles of Association.

Board of Directors: Composition and independence

According to its Articles of Association, the Board of Directors should have three to seven members, with a maximum of four deputies. The present Board consists of four members. Members of the Board of Directors serve for a term of one year and are elected at the AGM. The Norwegian Code of Practice for Corporate Governance states that at least two of the members of the Board should be independent of the company´s main shareholders. The Board consists of two large shareholders, together with the Chairman and one more Board member who are both independent.

The work of the Board of Directors

The Board of Directors' principal obligations include providing strategic guidance for the

company, monitoring the executive management to ensure its effectiveness, monitoring the company's financial situation, ensuring the company's accountability towards its shareholders and providing appropriate communication to its shareholders and other stakeholders.

The rules of procedure for the Board of Directors control the scope and proceedings of the body's obligations. The rules of procedure govern that an annual plan for the work of the coming year shall be settled at the last Board meeting of the fiscal year. The same meeting shall include an evaluation of the work performed by the Board of Directors during the fiscal year. The rules of procedure are reviewed at the board meeting directly following the AGM. The rules of procedure for the CEO are likewise reviewed at this meeting. The rules of procedure emphasize the clear internal allocation of responsibilities and duties. The company has a general system of internal control with descriptions of work processes and procedures in its quality system.

The Board of Directors ensures its internal control through regular written reporting by the executive management. The CEO is present and reports at all board meetings. There are generally one to two board meetings per quarter. There are no specific committees within the Board, such as an audit committee or remuneration committee. Such committees are regarded as inefficient, taking into account the small size of the company.

To comply with the rules of the Swedish Companies Act, the company has chosen to let the Board as a whole perform the tasks required of the Audit Committee.

Once per financial year, the Board carries out, through a systematic and structured process, an evaluation of the Board's work. The review is the

basis for the board's future working methods.

Internal control and risk management

The role of the Board is to ensure that Context-Vision has sound internal control and continuously remains informed of, and evaluates, the effectiveness of the company's internal control system. In view of the company's limited size and operational structure, the Board, in its annual assessment of the possible need for a separate function to review the company's internal financial controls, has concluded that there is no need for an internal audit function. The control environment underlies all other components of ContextVision's internal control and risk management. In order to create and maintain a functioning control environment for financial reporting, the Board has established a number of basic documents, including special rules of procedure for the Board and instructions for the CEO.

The Board has delegated responsibility for maintaining the Board's control environment framework to the CEO. The Board also determines the authorization instructions that delegate the CEO's authorization responsibilities to other senior executives at ContextVision. The CEO submits regular reports on the business situation and financial performance in relation to the budget and forecast to the Board and

senior management. In addition, reports are also submitted by ContextVision's auditor. The internal control also builds upon a management system based on ContextVision's organization and manner of conducting business with clearly defined roles and areas of responsibility, and delegated authority.

ContextVision has also documented the division of responsibilities within the organization through policies and instructions. ContextVision is a process-oriented company and has integrated risk assessment with business processes. ContextVision's senior management regularly assesses risks of material misstatement of the financial statements, as well as other operational risks. Risk management is also incorporated into each process and systematic methods are used to assess and mitigate risks, and to ensure that risks linked to the company's operations are managed in accordance with established regulations, instructions and monitoring procedures.

ContextVision's control structure includes clear roles and an effective delegation of responsibilities aimed at timely prevention of the risk of material misstatement of the financial statements. Company management has been tasked with implementing, further developing and maintaining the company's control structure. Process managers at various levels are responsible for the implementation of controls in respect of financial reporting. The closing accounts and reporting processes include checks in respect of valuations, reporting principles and estimates. ContextVision's CFO plays a key role in the internal control process by ensuring that financial reporting is accurate, timely and complete.

ContextVision has information and communication systems and processes to ensure complete and accurate financial reporting. The relevant employees are regularly informed about changes in accounting policies and reporting requirements or other information. The Board receives regular financial statements.

ContextVision's financial situation is addressed at all scheduled Board meetings. The Board and management review the financial reporting before Interim and Annual Reports are published. The auditor's duties also include an annual review of ContextVision's internal control. On at least one occasion each year the Board of Directors meets the auditor without the attendance of the CEO or any other members of company management when the auditor presents an account, and a discussion is held concerning the audit's focus and observations.

Remuneration of the Board of Directors

Remuneration of the Board of Directors is determined by the AGM and disclosed in the annual report. The annual results should not reflect the level of remuneration. As of December 31 2023, all members of the Board hold shares in the company at a total of 21 percent (51) of the company value.

Remuneration of executive management

At ContextVision, "executive management" is the CEO of the company. ContextVision shall offer its executive management competitive remuneration based on current market standards, company, and individual performance. The remuneration program shall ensure that the executive management and shareholders share common interest. The remuneration consists of a basic fixed salary and a performance-based variable salary.

The company has, in 2011, set up a founda-

tion. The idea of the foundation is to build a long-term incitement program for all employees in the company. Each year the company will form operational goals, and the yearly transfer to the foundation will be based on the fulfilment of these goals. All employees, including the CEO, has a share of the foundation based on nothing else than working hours during the year. The transfer to the foundation at the beginning of each year is based on the previous year's achievements. The CEO Gerald Pötzsch currently has a 2.8 percent participation in the foundation, based on working hours. For details on the remuneration of executive management, see note 5.

Information and communication

The Board endeavors to provide equal, timely and accurate communication to all stakeholders. The primary channels for communication are the annual report, the quarterly interim reports, press releases and presentations for shareholders and investors. Public company information is disclosed on the web site of the Oslo Stock Exchange www.euronext.com, as well as ContextVision's own website, www.contextvision.com. A video presentation is generally organized in connection with the release of quarterly reports. The dates for such presentations are announced on the company's web site.

Take-overs

The Board of Directors shall not seek to hinder or obstruct take-over bids for the company's activities of shares unless there are specific reasons for doing so. In the event of a takeover bid for the company's shares, the company's Board of Directors shall not exercise mandates or pass any resolutions that obstruct the takeover bid unless such actions are approved by a general meeting following the announcement of the bid. Any agreement entered into between the company and the bidder that are material to the market's evaluation of the bid will be publicly disclosed, no later than at the same time as the announcement that a bid will be made, is published. In case of a take-over bid, the Board of Directors will issue a statement making a recommendation to whether shareholders should or should not accept the offer as well as arrange for a valuation of the offer from an independent expert.

Audit

The auditor serves for a period of one year at a time and is elected at the AGM. The auditor participates in a yearly board meeting in February. This occasion allows a review of any material changes in the company's accounting principles and a report on any disagreement that may have arrisen between the executive management and the auditor concerning the annual accounts. The meeting shall also include a review of the company's internal control procedures and give the auditor the opportunity to discuss matters without any member of the executive management present.

Any performance of non-audit services and payments related thereto by the auditor are monitored by the Board of Directors. The Board shall advocate for the auditor to present the framework of the company's audit to the Board on an annual basis and for the auditor to provide a yearly written statement as to whether the auditor continues to satisfy the requirements for independence.

The Board of Directors

Olof Sandén Chairman

Sandén is partner at TRANSEARCH, an international Executive Search company. Olof has many years of experience from medical device companies in different leadership roles, but also from Boston Consulting Group and as the Swedish Trade Commissionaire to Germany / Regional Manager Europe at Business Sweden. Olof has carried out several M&A projects with subsequent integration work.

Elected in: 2021

Education: Master's degree from Chalmers / ETH Zurich and an Executive MBA from Columbia, New York.

Born in: 1962

Other assignments: Board member of three medical device companies; Micropos, Scandidos and Inify Laboratories AB, and a PE owned company Unisport OY.

Previous assignments: CEO of RISE, Research Institutes of Sweden. Executive Vice President at Elekta

Independent of the company: Yes Independent of the owners: Yes Shares in ContextVision: 3,000 shares

Sven Günther-Hanssen Member of the Board

Günther-Hanssen is one of the founders of ContextVision AB. Günther-Hanssen has acted as a venture capitalist and been involved in start-up companies in the medical, industrial and financial sectors in the capacity of investor as well as board member.

Elected in: 2011

Education: M.Sc. degree in Industrial Engineering from the Institute of Technology at Linköping University.

Born in: 1954 Other assignments: -

Previous assignments: Günther-Hanssen has previously served as CEO for

ContextVision, as well as chairman of the board.

Independent of the company: Yes

Independent of the owners: No Shares in ContextVision:

8,516,670 shares (11%)

Martin Hedlund Member of the Board

Hedlund is one of the founders of ContextVision AB. He founded the company, as a Research & Development Manager and later site manager in Linköping, leading a team to build one of the first advanced image analysis high-speed computers, namely the GOP-computer.

Elected in: 1997

Education: Master in Electrical Engineering Applied Physics at Linköping University.

Born in: 1952

Other assignments: Board member of Cytacoat AB and the wholly owned Yakivu AB and DMGH Consulting.

Previous assignments: CTO for

ContextVision

Independent of the company: Yes Independent of the owners: No Shares in ContextVision: 8,316,660 shares (10.7%)

Martin Ingvar Member of the Board

Ingvar has a background in cognitive neuroscience and is Senior Professor at Karolinska Institutet, Stockholm Sweden. He has devised new modes for semantic interoperability in information systems and laid a foundation for patient centric knowledge building in health care.

Elected in: 2020

Education: MD, Specialist in Clinical Neurophysiology, PhD.

Born in: 1955

Other assignments: Board member of Inify Laboratories AB and International consortium for health outcome measurement (ICHOM).

Previous assignments: - Independent of the company: Yes Independent of the owners: Yes Shares in ContextVision:12,000 shares

Group Management

Gerald Pötzsch Chief Executive Officer

Employment with ContextVision: 2022

Education: After graduating from RWTH Aachen in Germany, Gerald completed two PhD programs in Engineering and Medicine.

Born in: 1972

Other assignments: Cardiolex AB and MedTec AB

Previous assignments: Gerald Pötzsch has spent 16 years with Philips in commercially leading roles in Europe, as Senior Director for Innovation in the CTO office, and as business leader for a global solution business that he established in the US.

Shares in ContextVision:

25,000 shares

Richard Hallström Chief Financial Officer

Ola Lindblad Chief Sales & Solution Officer

Gunnar Läthén Chief Technology Officer

Ann-Sofi Hoff Chief Product Officer

Katarina Flood Chief Service Officer

Karin Lindbom Interim Chief Human Resources Officer

Business overview | Statutory Annual Report ContextVision Annual Report 2023 41

Administration Report | Risks | Five Year Summary | Corporate Governance Report | The share | Financial Reports | Notes | Auditor's Report | Other

The ContextVision share

The company had in total 77,367,500 shares by December 31, 2023. There has been no repurchase of shares or other changes of the share capital during 2023. ContextVision does not hold any own shares in stock.

There are three individual shareholders, each representing 10 percent or more of the company.

Freely negotiable shares

There is no form of restriction of the negotiability of the shares in the company's articles of association.

Equity and dividends

The company is to have an equity at a level appropriate to its objectives, strategy, and risk profile. Presently, the strong cash balance is

appropriate to fund the future growth ambitions. The Board of Directors is regularly informed of the equity to ensure it is on an appropriate level.

Performance over the year

From a closing price of NOK 9.14 at the end of the year 2022, ContextVision's share had a closing price of NOK 7.7 at the end of the year 2023. The highest quotation during the year, in May 2023, was NOK 9.5.

The 10 largest shareholders as per December 31st, 2023	No of shares	(%)
Monsun AS	23,000,000	29.73
Sven Günther-Hanssen	8,516,670	11.01
Martin Hedlund	8,316,660	10.75
TAURI AS	3,883,275	5.02
State Street Bank and Trust Comp	3,228,854	4.17
MP PENSJON PK	2,505,123	3.24
BRAS KAPITAL AS	2,220,347	2.87
Danske Bank A/S	1,726,970	2.23
STAVLAND	1,700,000	2.20
Avanza Bank AB	1,405,164	1.82
Others	20,864,437	26.97
Total outstanding shares	77,367,500	100.00

ContextVision Annual Report 2023

ContextVision's share and turnover 2023

1,800,000 1,500,000 1500000 1800000 No. of shares

ContextVision's share and turnover 2018–2023

1,200,000 900,000 600,000 300,000 00 300000 600000 900000 1200000 0 5 10 15 20 25 30 NOK 30 25 20 15 10 5 0 2018 2019 2020 2021 2022 2023 Share price in NOK Turnover number of shares

Shareholder information

Information from ContextVision is distributed through stock exchange notices, press releases, reports, and presentations. This information is available on the Oslo Stock Exchange's web site at Euronext www.euronext.com and/or on the company's website www.contextvision.se

A video presentation is usually released on the day following publication of the company's quarterly report.

For queries, please e-mail: richard.hallstrom@contextvision.se

Ownership

The Company is listed on the Oslo stock exchange since 1997, ticker code CONTX.

Share information

Ticker	CONTX
Market name	Oslo Stock Exchange
Year of listing	1997
Market capitalization (year-end)	MSEK 588
ISIN	SE0014731154
Number of shares	77,367,500
Trading currency	NOK
Sector	Health care
GICS	35103010
LEI-code	549300DGJB24U1VKHC98

Financial Reports

KSEK	Note	2023	2022
Continued operations
Operating income
Net sales	2, 3	132,193	117,825
Capitalized work for own account	9	110	3,673
Other income	3	299	1,714
Total		132,602	123,212
Operating expenses
Goods for resale		-2,607	-2,404
Other external costs	3, 4, 7	-27,977	-25,851
Other operating expenses		-3,555	–
Employee benefits	5	-49,593	-45,878
Depreciation and amortization	7, 9, 10	-8,834	-7,946
Total operating expenses		-92,566	-82,079
Operating result		40,036	41,133
Financial items
Financial income		1,441	111
Financial costs		-214	-199
Total financial items		1,227	-88
Result after financial items		41,262	41,045
Tax on results for the year	6	-8,385	-7,726
Deferred tax	6,8	-149	–
Net result from continued operations		32,729	33,319
Discontinued operations
Net result from discontinued operations	22	–	-4,527
Net result from continued & discontinued operations		32,729	28,791
Average no. of shares			77,367,500 77,367,500
Earnings per share before/after dilution	23	0.42	0.37
Earnings per share continued operations	22, 23	0.42	0.43

Other Comprehensive Income

KSEK Note	2023	2022
Net result for the period	32,729	28,791
Other comprehensive income Items that will be returned to the profit
Effect of currency hedging Tax effect of currency hedging Translation difference	2,324 -479 -68	-674 139 175
Result from subsidiary Inify Laboratories AB	–	295
Total other comprehensive income	1,777	-65
Total comprehensive income for the period	34,506	28,726

Consolidated Balance Sheet

KSEK	Note	2023	2022
ASSETS
Non-current assets
Intangible fixed assets
Capitalized expenditure for development work	9	6,330	9,541
Total intangible fixed assets		6,330	9,541
Tangible fixed assets
Equipment, tools and furniture	10	3,340	3,700
Total tangible fixed assets		3,340	3,700
Right-of-use assets
Right-of-use assets	7	5,903	5,161
Total right-of-use assets		5,903	5,161
Financial fixed assets & other non-current assets
Other long-term receivables	12, 19	926	1,254
Total financial fixed assets & other non-current assets		926	1,254
Total non-current assets		16,499	19,656
Current assets
Inventories	13	1,854	1,272
Total inventories		1,854	1,272
Current receivables & current investments
Accounts receivable	14	22,467	27,460
Other receivables	14	–	1,464
Tax receivables	6	–	3,777
Other short-term investments		1,013	–
Prepaid expenses and accrued income	15	3,181	2,252
Total current receivables & current investments		26,661	34,952
Cash and cash equivalents	24	58,144	41,858
Total current assets		86,658	78,082
Current assets for dividend to shareholders	22	–	–
TOTAL ASSETS		103,159	97,738

KSEK	Note	2023	2022
EQUITY AND LIABILITIES	16
Equity
Share capital		2,084	2,084
Other contributed capital		2,864	2,864
Other reserves		1,141	-636
Retained earnings		71,736	62,217
Total equity		77,825	66,529
Long term liabilities
Deferred tax	8	297	146
Deferred tax leasing	8	149	–
Non-current lease liabilities	7	1,513	1,881
Total long term liabilities		1,959	2,027
Short term liabilities
Accounts payable and other debts	17	7,013	6,581
Tax liabilities	6	1,181	7,679
Accrued expenses and pre-paid income	18	11,512	9,918
Derivatives	24	–	2,457
Current lease liabilities	7	3,668	2,546
Total short term liabilities		23,374	29,181
Total liabilities		25,333	31,208
TOTAL EQUITY AND LIABILITIES		103,159	97,738

Consolidated Statement of Changes in Equity

KSEK	Share capital	Other contributed capital	Other reserves	Retained earnings and result for the year	Total
January 1, 2022	2,084	2,864	-276	33,131	37,803
Total comprehensive income for the period	–	–	-360	29,086	28,726
Dividend to shareholders	2,084	2,864	-636	62,217	66,529
December 31, 2022/ January 1, 2023	2,084	2,864	-636	62,217	66,529
Total comprehensive income for the period	–	–	1,777	32,729	34,506
Dividend to shareholders	–	–	–	-23,210	-23,210
December 31, 2023	2,084	2,864	1,141	71,736	77,825

All equity is attributable to the Parent Company's shareholders.

Specification of other reserves

KSEK (definitions, see note 14)	Translation difference	Currency hedging	Tax effect on currency hedging	Total
January 1, 2022	450	-923	198	-276
Change during the year	176	-665	129	-360
December 31, 2022 / January 1, 2022	626	-1589	327	-636
Change during the year	-68	2 324	-479	1 777
December 31, 2023	558	735	-152	1 141

Consolidated Statement of Cash Flow

KSEK	Note	2023	2022
Operating activities	2
Operating profit continued operations		40,036	41,133
Operating profit discontinued operations		–	-4,520
Total operating profit		40,036	36,613
Adjustment of items not included in the cash flow
Depreciation and impairment of assets	9, 10	4,384	4,223
Depreciation of right-of-use assets	7	4,450	4,457
Unrealized gain/loss on current investments		1,845	-536
Interest payments		1,227	-95
Income tax paid		-7,835	-2,821
Other non cash flow items		-581	945
Cash flow from operating activities before changes in working capital1)		43,526	42,786
Changes in working capital
Change in inventories		-582	-244
Change in current receivables		8,840	-7,029
Change in current liabilities		-7,036	-9,624
Cash flow from operating activities		44,748	25,889
Cash flow from investing activities
Investments in intangible assets	9	-110	-3,673
Investments in tangible assets	10	-703	-1,155
Other financial assets		–	-473
Cash flow from investing activities		-813	-5,300
Cash flow from financing activities
Payments of lease liabilities		-4 439	-4,659
Dividend		-23,210	–
Payment of share capital		–	-500
Cash transfer to Inify Laboratories AB		–	-20,503
Cash flow from financing activities		-27,649	-25,662
Cash flow for the year		16,286	-5,073
Cash and cash equivalents at beginning of year		41,858	46,931
Cash and cash equivalents at year end		58,144	41,858

1) During the year, interest of KSEK 1 441 (111) has been received and interest of KSEK 214 (206) has been paid.

Parent Company Income Statement

KSEK	Note	2023	2022
Operating income
Net sales	2, 3	132,193	117,825
Capitalized work for own account	9	110	3,673
Other income	3	299	2,002
Total		132,602	123,500
Operating expenses
Goods for resale		-2,607	-2,406
Other external costs	3, 4, 7	-35,923	-35,617
Other operating expenses Employee benefits	5	-3,555 -46,516	– -44,654
Depreciation and amortization	9, 10	-4,384	-4,223
Total operating expenses		-92,985	-86,900
Operating result		39,617	36,600
Financial items
Financial income		1,441	111
Financial costs		-1	-2
Total financial items		1,440	109
Result after financial items		41,057	36,709
Appropriations
Result before tax		41,057	36,709
Tax on results for the year	6	-8,292	-7,650
Net result		32,765	29,059
Dividend per share, SEK	23	–	0.301)

1) Dividend

Parent Company Balance Sheet

KSEK	Note	2023	2022
ASSETS
Non-current assets
Intangible fixed assets
Capitalized expenditure for
development work	9	6,330	9,541
Total intangible fixed assets		6,330	9,541
Tangible fixed assets
Equipment, tools and furniture	10	3,340	3,700
Total tangible fixed assets		3,340	3,700
Financial fixed assets & other non-current assets
Shares in group companies	11	217	217
Other long-term receivables	12, 19	926	1,254
Total financial fixed assets & other non-current assets		1,143	1,471
Total non-current assets		10,813	14,712
Current assets
Inventories	13	1,854	1,272
Total inventories		1,854	1,272
Current receivables and prepaid expenses
Accounts receivable	14	22,467	27,460
Other receivables		–	1,464
Tax receivables	6	–	3,777
Other short-term investments	24	1,013	–
Prepaid expenses and accrued income	15	4,287	3,214
Total current receivables and prepaid expenses		27,766	35,915
Cash and cash equivalents	19, 24	57,509	41,085
Total current assets		87,129	78,272
TOTAL ASSETS		97,943	92,984

KSEK	Note	2023	2022
EQUITY AND LIABILITIES
Equity	16
Restricted equity
Share capital		2,084	2,084
Statutory reserves		15,243	15,243
Reserve related to R&D expenses		6,330	9,542
Total restricted equity		23,657	26,869
Non-restricted reserves
Fair value reserve		583	-1,261
Retained earnings		19,326	10,266
Profit/loss for the year		32,765	29,058
Total non-restricted reserves		52,674	38,063
Total equity		76,331	64,932
Untaxed reserves
Tax allocation reserve	20	680	680
Total untaxed reserves		831	680
Provisions
Deferred tax	8	151	–
Total provisions		151	–
Liabilities
Current liabilities
Advance payment from customers	17	651	2,588
Accounts payable	17	5,348	3,161
Payables to group companies	17	1,483	1,191
Tax liabilities	6	1,153	7,650
Other liabilities	17	732	3,115
Accrued expenses and deferred income	18	11,413	9,667
Total current liabilities		20,780	27,372
Total liabilities		20,780	27,372
TOTAL EQUITY AND LIABILITIES		97,943	92,984

Parent Company Statement of Changes in Equity Parent Company Statement of Cash Flow

KSEK	Share capital	Statu tory reserve	Reserves related to R&D expenses	Retained earnings	Currency hedging, net	Result for the year	Total
January 1, 2022	2,084	15,243	8,622	11,994	-726	-809	36,408
Total comprehensive income for the period	–	–	–	–	-535	29,059	28,524
Reserve related to develop ment expenses	–	–	920	-920	–	–	–
Appropriation of profits 2021	–	–	–	-809	–	809	–
Dividend to shareholders	–	–	–	–	–	–	–
December 31, 2022/ January
1, 2023	2,084	15,243	9,542	10,265	-1,261	29,059	64,932
Total comprehensive income for the period	–	–	–	–	1,844	32,765	34,609
Reserve related to develop ment expenses	–	–	-3,212	3,212	–	–	–
Appropriation of profits 2022	–	–	–	29,059	–	- 29,059	–
Dividend to shareholders				-23,210	–	–	-23,210
December 31, 2023	2,084	15,243	6,330	19,326	583	32,765	76,331

KSEK	Note	2023	2022
Operating activities
Operating profit		39,617	36,600
Adjustment of items not included in the cash flow
Depreciation and impairment of assets	9, 10	4,384	4,223
Unrealized gain/loss on current investments		1,845	-535
Interest payments		1,440	109
Income tax paid		-5,309	-2,669
Other non cash flow items		-581	809
Cash flow from operating activities before changes in
working capital1)		41,396	38,537
Changes in working capital
Change in inventories		-582	-244
Change in current receivables		-8,730	-7,117
Change in current liabilities		-9,097	-10,225
Cash flow from operating activities		40,447	20,951
Cash flow from investing activities
Investments in intangible assets	9	-110	-3,673
Investments in tangible assets	10	-703	-1,155
Other financial assets		–	28
Cash flow from investing activities		-813	-4,800
Cash flow from financing activities
Payment of share capital		-23,210	-500
Cash transfer to Inify Laboratories AB	22	–	-20,503
Cash flow from financing activities		-23,210	-21,003
Cash flow for the year		16,424	-4,852
Cash and cash equivalents at beginning of year		41,085	45,937
Cash and cash equivalents at year end		57,509	41,085

1) During the year, interest of KSEK 1441 (111) has been received and interest of KSEK 1 (2) has been paid.

Notes All amounts in thousand Swedish kronor (KSEK) unless otherwise noted.

Note 1 Supplementary disclosures

Company information

The consolidated statements for ContextVision AB (publ) for 2023 have been approved for publication in accordance with a Board decision on April 12, 2024. The consolidated financial statements will be submitted for adoption at the General Meeting on May 14, 2024. ContextVision AB (publ), corporate ID No. 556377-8900, is a corporation with its registered office in Linköping, Sweden. ContextVision address is Storgatan 24, 582 23 Linköping. The Group's principal business is described in the Administration Report.

Statement on compliance with applied regulations

These consolidated statements have been prepared according to International Financial Reporting Standards (IFRS) together with interpretations issued by IFRS Interpretations Committee (IFRIC), approved by the EC Commission for application within the EU.

Both the Group and the Parent Company complies with the Swedish Annual Accounts Act.

The recommendation RFR 1 (Supplementary Accounting rules for Groups) by the Swedish Financial Reporting Board has also been applied. The accounts of the Parent Company have been prepared according to the recommendation RFR2 (Accounting for Legal Entities) by the Swedish Financial Reporting Board.

The annual and consolidated accounts have been prepared under the assumption that the group conducts its business according to the going concern principle.

The functional currency of the parent company is the Swedish krona which also is the reporting currency for the group and the parent company. All amounts, if nothing else is stated, are presented in SEK thousand with one decimal. The amounts in tables and reports do not always sum up exactly to

the total amount due to rounding. The purpose is that each amount should equal its origin and rounding differences can therefore occur.

New and changed accounting principles during 2023

No new or revised standards and interpretations applied since 1 January 2023 have had any effect on the consolidated financial statements.

Standards, amendments and interpretations to be applied from 2024 or later

No new or revised standards and interpretations that are not yet effective have been adopted in advance and are not expected to have any material effect on the consolidated financial statements.

Requirements on the preparation of the Parent Company and Group financial reporting

These consolidated statements are based on historic acquisition values, except for financial derivatives, marketable financial assets and assets available for sale, which are valued at their actual value. These assets and liabilities are valued at their actual current value.

Consolidated statements Grounds for consolidation

Consolidated accounting includes the Parent Company and its subsidiaries. The financial reports for the Parent Company and the subsidiaries that are included in the consolidated statements relate to the same period as those of the Group, and are prepared according to the same accounting principles that apply to the Group.

A subsidiary is included in the consolidated statements from the time of acquisition. This is the date on which the Parent Company acquired the power to control, and continues to be included in the consolidated statements until the day on which the power to control ceases. Normally, the power to control a subsidiary is obtained through the holding of more than 50 percent of the voting shares, but may also be obtained in some other way, such as through a contract.

Subsidiaries are reported in consolidated accounts according to the acquisition method. According to the acquisition method, the purchase price of the shares is divided between assets acquired and obligations assumed at the time of acquisition on the basis of their actual value at that point. If the purchase price exceeds the actual value of the acquired company's net assets, the difference is posted as goodwill. If the purchase price is less than the actual value of the acquired company's net assets, the difference is posted directly to the income statement.

Translation of foreign operations

A foreign operation is one that is operated in an economic environment having a currency (the functional currency) different from the Group's presentation currency, which is the Swedish krona (SEK). Assets and liabilities from foreign operations are translated into the presentation currency at the exchange rate on the balance sheet date. Foreign operation income statements are translated at an average exchange rate. Exchange rate differences that result from conversion are posted to statement of comprehensive income.

Translation of receivables and liabilities in foreign

currency

Foreign currency transactions are translated at the exchange rate on the transaction sheet date. Monetary receivables and liabilities in foreign currency are translated at the exchange rate that applied on the balance sheet date, with exchange rate differences posted to the income statement.

Revenue recognition

ContextVision's revenues mostly consist of license fees. The license grants the right to use the intangible asset as it is issued (right-to-use). The Group's customers are manufacturers (OEM) of medical imaging equipment such as ultrasound devices. Customers purchase a license for each unit they deliver which means that the Group's sales are dependent on the customers' production rate. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, which is in conjunction with the transfer of the license to the customer. After the transfer of the license, ContextVision has no further obligations related to the delivery. Revenue is measured at the fair value of the consideration received, excluding discounts. There is no financing component in the contract because the credit period is at most 90 days, which is consistent with practice.

The parts of a contract not related to the sale of licenses consist of service. The total transaction price of the contract is allocated to the separate performance commitments based on its relative independent selling prices. Revenues from respective performance commitments are recognized when the performance commitment has been met.

Financing component

Note 1 cont.

The Group does not have any contracts with customers in which the period between the transfer of goods and services to the customer and payment from the customer exceeds one year. As a consequence, the Group does not adjust transaction prices for the money's time value.

Segment reporting

An operating segment is a part of the Group that conducts business activities from which it generates revenue and incurs costs and for which independent financial information is available. The results of an operating segment are also monitored by the Group's chief operating decision maker. In accordance with IFRS 8, segment information is provided for the Group only. The identification of reportable segments is based on the internal reporting to the chief operating decision maker, which is the CEO of ContextVision. In this internal reporting, the Group constitutes a single segment since no costs are allocated, whereby the only segment is presented in the financial statements.

The former segment Digital Pathology included research, product development and sales to customers active in digital pathology. In November 2021, the board decided to change strategy and the Digital Pathology segment was developed into a subsidiary; Inify Laboratories AB and was split from ContextVision in February 2022. In accordance with current accounting standards, the part of the business that includes medical imaging is therefore reported as continuing operations, while the part of the business that includes digital pathology is reported as discontinued operations.

Tangible and intangible fixed assets with determinable useful lives

Tangible and intangible fixed assets are valued at their acquisition value less accumulated depreciation and write-downs. Depreciation is based on an asset's useful life. The reported value of fixed assets is reviewed continuously for impairment when events or changes in circumstances indicate that the posted value may not be recoverable. Ongoing research and development projects are tested for impairment twice every year or when any indication of need for impairments occurs. The recoverable amount for fixed assets corresponds to the higher of the net selling price and the value in use. The value in use is estimated by discounting the expected future cash flows

to their present value using a discount rate. The discount rate used in 2022 was 12 percent. A sensitivity analysis is performed with the same assumptions about cash flows for the next five years but with a pre-tax discount rate of 20 percent. No potential need for impairment was found to exist at this higher discount rate. Any impairment loss is recognized in the income statement.

When evaluating possible impairments, the assessment is based on a combination of historical data, budget, and forecast information. To assess the useful life and value of fixed assets beyond the 5-year forecast period, various techniques and methods are used, including experience-based assumptions and expert judgments. If there are indications of impairment and if the carrying amount exceeds the expected recoverable amount, the assets are impaired to the recoverable amount. Completed impairment tests have shown that the Group has a good margin when it comes to recoverable values for fixed assets. The Group has a significant difference between the recoverable value and the carrying amount, providing a safety margin for the Group in the event of any future impairments.

Equity

Additional paid in capital – Refers to additional paid in equity from shareholders, reduced with repurchased shares and dividends.

Translation difference – Contains all currency translation differences arising from the translation of financial statements of foreign subsidiaries not reporting in SEK.

Currency hedging – Contains the effective part of the accumulated net change in the fair value of cash flow hedging related to transactions that has not yet occurred.

Retained earnings and net result for the year – Contains retained earnings in the Parent Company and its subsidiary.

Reserve related to R&D expenses - Refers to the reserve equal to the capitalization, that is transferred from free reserves to restricted reserves.

Development expenses

Expenses related to research undertaken with the prospect of gaining new scientific or technical knowledge in the Group's operations are expensed as incurrent. Development projects where knowledge and

understanding gained from research and clinical experience are directed towards producing new products, are recognized as intangible assets, when they meet the criteria of IAS 38. This means that an intangible asset that arises through development is taken up as an asset in the balance sheet only if the following conditions are met:

• It is technically possible for ContextVision to complete the intangible asset so that it can be used or sold.
• ContextVision's intention is to complete the intangible asset and use or sell it.
• ContextVision has the ability to use or sell the intangible asset.
• ContextVision shows how the intangible asset will generate probable future financial benefits.
• There are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
• ContextVision can reliably measure the expenses attributable to the intangible asset during its development.

The reported value includes all directly attributable costs, such as those for materials, salaries and compensation to employees engaged in development activities. Other development costs that do not meet criteria of IAS 38 are expensed in the profit and loss account for the period in which they arise. Individual assessment is made of all ongoing research and development projects to find any indications of impairment.

Amortization of capitalized development costs is started when the respective development project is completed, normally when it begins generating revenue, and is carried out on a straight-line basis over a period of five years.

Inventory

Inventory is valued as the lower of acquisition value and actual value.

Acquisition value is determined according to the first in, first out (FIFO) method, which means that assets in inventory at the end of the year shall be considered to be those most recently acquired.

Financial instruments

Financial instruments that is reported in the balance sheet includes cash and cash equivalents, accounts receivable, accounts payable, other liabilities and derivatives that consists of forward exchange contracts.

Recognizing in and removal from the balance sheet

A financial asset or liability is recognized in the balance sheet when the Group becomes a party according to the instrument's contractual terms. A contractual receivable is recognized when the Group has performed its commitments and a contractual obligation for the counterparty to pay exists, even if the invoice not yet has been sent. Accounts receivables is recognized in the balance sheet when an invoice has been sent. A contractual liability is recognized when the counterpart has performed its commitments and a contractual obligation to pay exists, even if an invoice not yet has been received. Accounts payable is recognized when an invoice has been received.

A financial asset is removed from the balance sheet when the rights in the contract has been realized, expired or if the Group loses control over them. The same applies to a part of a financial asset. A financial obligation is removed from the balance sheet when the obligation in the contract has been performed or otherwise is expired. The same applies to a part of a financial obligation.

A financial asset and a financial obligation are paired up and recognized as a net amount in the balance sheet only when a legal right to pair up the amounts exists, and there also exists an intention to regulate the items with a net amount or at the same time realize the asset and regulate the obligation.

Acquisition and sales of financial assets is recognized on the transaction date. The transaction date is the day that the Group is obliged to acquire or sell the asset.

Classification and valuation of financial assets

Classification of financial assets is based on the Groups' business model for asset management and the character of the assets contractual cash flows.

The instrument is either classified at accrued acquisition value, fair value against other comprehensive income or fair value over the income statement.

The Groups' assets in terms of debt instruments is classified at accrued acquisition value. Financial assets classified at accrued acquisition value is initially valued at fair value with addition of transactions costs. Accounts receivable is initially recognized at the invoiced value.

After the first date of recognition, it is valued at

Note 1 cont.

accrued acquisition according to the effective interest rate approach. Assets classified at accrued acquisition value is held according to the business model to collect contractual cash flows that are payments of capital amounts and interest on the outstanding capital amount. The assets are included in a reservation for expected credit losses. Derivative instruments are classified at fair value over the income statement, except in the cases hedging contracts are applied.

Classification and valuation of financial obligations

Financial obligations are classified at accrued acquisition value with exception for derivatives. Financial obligations recognized at accrued acquisition value is initially valued at fair value including transaction costs. After the first date of recognition it is valued at acquisition value according to the effective interest rate approach. Derivative instruments classified at fair value over the income statement, except in the cases hedging contracts are applied.

Recognition of derivative instruments and hedge accounting

Derivative instruments comprise forward hedging contracts that is used to minimize the transaction exposure from foreign currencies. Derivative instruments are not used for speculative purposes. All derivative instruments are recognized at fair value in the balance sheet.

Derivatives that has been entered with the purpose to ensure the currency risk in probable future commercial payments in foreign currency, meaning cash flow from sales, and that meet the requirement for hedging accounting, is recognized according to the principles for hedge accounting for cash flow hedges in the Group. The Group applies hedging accounting in accordance with IFRS 9. That means that the effective part of changes in fair value of the derivative instruments are recognized in the fair value reserve under other comprehensive income. The gain or loss that is related to the ineffective part is recognized over the income statement under other operating expenses. Fair value of the derivatives is calculated using current market prices for foreign currency and interest rates on the balance sheet date.

Accumulated amounts in other comprehensive income are turned to the income statement in the periods that the hedging contract is affecting the results, meaning in combination with settlement of the result. When a hedging instrument expires or is realized or when the hedging contract no longer meet the requirements for hedging accounting, and accumulated gains or losses referring to the hedging contract is recognized in other comprehensive income, these gains/losses remains in other comprehensive income and is recognized at the same time as the prognosticated transaction is finally recognized in the income statement. The effective and ineffective part is recognized under other operating expenses. When a prognosticated transaction no longer is expected to be realized, the accumulated gain or loss that has been recognized under other comprehensive income, is immediately transferred to the income statement under other operating expenses.

When hedging transactions are entered into, the relationship between the hedging instrument and the hedged risk is documented, as well as the purpose of the risk management and the strategy for taking different hedging measures. The Group also documents its assessment, both when entering the hedge and thereafter continuously, of whether the hedging instruments that are used in hedging transactions are effective when it comes to equalizing changes in cash flows or valuation. Changes in the fair value reserve and the translation reserve are shown under other comprehensive income.

Write-down of financial instruments

The Group's financial assets, except for those that is classified at fair value through profit or loss, is subject to write-down of expected credit losses.

For accounts receivable, a simplified method is applied and the reserve for credit losses is calculated and reported based on expected credit losses for the entire remaining term. The calculation of expected credit losses is mainly based on an individual assessment of the current claim in combination with information on historical losses for similar assets and counterparties. The historical information is evaluated and adjusted continuously depending on the current situation and the expectation of future events.

The financial assets are recognized in the balance sheet at accrued acquisition value, meaning the net of gross value and provision for expected losses. Any changes in the provision for expected losses is recognized over the income statement.

Provisions

Provisions are reported on the balance sheet when the

Group has an obligation (legal or informal) due to an occurrence, satisfying the obligation will probably mean an expenditure of economically valuable resources, and the amount can be calculated in a reliable manner.

Compensation to employees Pensions and other obligations to supply benefits after the end of employment

Obligations relating to old-age pensions for salaried employees in Sweden are secured by insurance. This insurance is secured by defined contribution plans that are expensed on an ongoing basis. Pension payments to employees outside Sweden are handled according to local regulations. There are no defined benefit plans in the Group.

All employees of the Group are part of an incentive program, represented by a profit-sharing foundation. The foundation receives funds if the Group successfully reaches specified objectives, related to sales and operations. The foundation invests in ContextVision shares, purchased on the stock market. The employees' share of the foundation is based on hours worked during the year.

Taxes

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the reporting date, in the countries where the Group operates and generates taxable income. Current income tax relating to items recognized directly in equity or other comprehensive income is recognized in equity or other comprehensive income and not in the income statement.

Deferred tax

Deferred tax is provided using the balance sheet method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax

losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Cash flow statement

The cash flow statement is prepared according to the indirect method used for operations. In addition to cash and cash equivalent, liquid funds also include short-term investments for which the original term is less than three months which are exposed to only insignificant risk.

Government contributions

Government contributions are recognized in the income statement when it is secured that it will be submitted and that the conditions surrounding it will be fulfilled. When the contribution is associated with a specific cost, the revenue is systematically recognized to periodically match the cost. No contributions have been received in 2023 (nor in 2022).

IFRS 16 leases

ContextVision has leasing agreements for various types of objects, mainly office premises (Stockholm & Linköping) and office equipment. The leasing agreements for the office premises are usually between 2 and 5 years. Extension and termination options are included in the contracts, as well as clauses linked to index calculation of future rental costs. Service components are not included in capitalized amounts in accordance with IFRS 16. The same applies to other variable costs, such as electricity and heating, where the costs are determined by the actual use of the premises.

ContextVision also has a number of leasing agreements with a contract duration of less than 12 months as well as leasing agreements of smaller value. For these, the Group applies the exception for short-term leases and leases with low value, which essentially consists of copiers, printers, conference equipment and computers. ContextVision reports right-of-use assets linked to leasing agreements in

Note 1 cont.

the balance sheet under the heading Right-of-use assets, and leasing liabilities in the balance sheet under separate headings, long-term and short-term liabilities. Lease fees paid are reported partly as payment of interest, partly as amortization of the leasing debt. IFRS 16 had an effect on the balance sheet on December 31, 2023, with 5.9 MSEK in rights of use and 5.2 MSEK in lease liabilities. The difference between assets and liabilities depends on prepayments of leasing costs. An interest rate of 3 percent has been used for leasing of offices and 5 percent for leasing of office equipment. All leasing agreements are depreciated linearly during agreement period.

Important judgments and estimates associated with accounting

Judgments and estimates related to accounting are continuously evaluated. They are based on historical knowledge and other factors as well as expected events that are likely to occur. Judgments and estimates made for accounting purposes may deviate from the actual outcome.

Impairment test of intangible assets

ContextVision evaluates on a regular basis if there are any indications of impairment for capitalized development expenses. The Group regularly analyses the need for write-down of development expenses. The evaluation means that the management makes assumptions that include estimates and assessments on each product's expected future sales and profitability level. The used assumptions are based on historical experiences from development of similar products as well as expectations on the future. See the section on Tangible and intangible fixed assets above for further details.

Capitalization of development expenses

Expenditure for development projects is recognized as an intangible asset if ContextVision demonstrates that it is technically possible to complete and profitable to commercialize the result and only if the expenditure for this project can be reliably measured. Development expenses that do not meet the accounting criteria according to IAS 38 are expensed when they arise. Expenditures that are directly related to identifiable software products specially developed for ContextVision, which are controlled by the Group, and which are likely to generate economic benefits that

exceed the costs for a period longer than one year, are reported as intangible fixed assets. The value includes all direct costs, such as office, materials, consulting services, salaries and compensation for the development staff.

Parent Company Accounting

The Parent Company complies with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Reporting for Legal Entities. Application of RFR 2 entails that the Parent Company, in the annual report for the legal entity must comply with all EU-endorsed IFRSs and pronouncements as far as possible within the framework of the Annual Accounts Act, the Pension Protection Act and considering the relationship between reporting and taxation. The recommendation indicates which exceptions from and amendments to IFRS are to be made. The differences between the Parent Company's and Group's accounting policies are described below.

Subsidiaries and associates

Shares in subsidiaries are recognized in the Parent Company using the cost method.

Taxes

In the Parent Company, untaxed reserves are reported including deferred tax liability. In the consolidated financial statements, however, untaxed reserves are divided into tax liability and shareholders' equity.

Leasing agreement

All leasing agreements are depreciated linearly during agreement period.

Reserve related to development expenses

The Parent Company capitalizes development expenses in the balance sheet. A restricted reserve is presented for internally generated development expenses, where an amount equal to this year's capitalization is transferred from free reserves to restricted reserves. The restricted reserve dissolves in line with amortizations and any disposal of the asset.

Note 2 Income

All income is related to the business unit medical imaging

	GROUP			PARENT COMPANY
Net sales by region (KSEK)	2023	2022	2023	2022
Asia	91,965	80,586	91,965	80,586
Europe	21,742	19,696	21,742	19,696
America	18,486	17,542	18,486	17,542
Total	132,193	117,825	132,193	117,825

	GROUP			PARENT COMPANY
Net sales by product (KSEK)	2023	2022	2023	2022
XR	18,640	22,761	18,640	22,761
US 2D	92,950	75,136	92,950	75,136
US 3D	7,875	8,447	7,875	8,447
MR	4,625	6,512	4,625	6,512
Other	156	2,534	156	2,534
Service	7,947	2,434	7,947	2,434
Total	132,193	117,825	132,193	117,825

	GROUP	PARENT COMPANY
Net sales by country (KSEK)	2023	2022	2023	2022
Korea	34,398	33,444	34,398	33,444
China	40,361	29,946	40,361	29,946
Japan	15,934	15,393	15,934	15,393
USA	18,486	16,677	18,486	16,677
Sweden	0	1,270	0	1,270
Other countries	23,014	21,094	23,014	21,094
Total	132 193	117,825	132,193	117,825

The Executive Management views the result of the Group as a whole, with one operating segment (continued operations). Sales are viewed on a geographical level and at product level.

There are 2 (2) individual customers representing more than 10 percent each of the total revenue during the year. The first client representing 18 percent and the other one representing 12 percent of the total revenue during 2023. Asia is the largest region, saleswise, and represented 70 percent (67) of the total

revenue for the year. In that region sales from China, Japan and Korea is included. All license income is generated outside Sweden.

The product names XR, US and MR refer to different imaging technologies, which are manufactured and sold by the Group's OEM customers. XR refer to X-ray products, US means Ultrasound (two dimensional or volumetric) and MRI stands for Magnetic Resonance Imaging.

board is a partner, was engaged for recruitment of the CEO and interim CFO. The total cost for the year was

Remuneration according to employment contract has been paid to key personnel, for more information

Transactions with related parties have been at

Other than set out above, there has been no significant transactions with related parties during the year.

Administration Report | Risks | Five Year Summary | Corporate Governance Report | The share | Financial Reports | Notes | Auditor's Report | Other

Note 2 cont.

Consolidated Income Statement

Business unit/segment	CONTINUED OPERATIONS Business Unit Medical Imaging		DISCONTINUED OPERATIONS Business Unit Digital Pathology		GROUP TOTAL
(KSEK)	2023	2022	2023	2022	2023	2022
Net sales	132,193	117,825	–	–	132,193	117,825
Capitalized work for
own account	110	3,673	–	–	110	3,673
Other income	299	1,714	–	288	299	2,002
Total operating income	132,602	123,212	–	288	135,113	123,500
Goods for resale	-2,607	-2,404	–	-1	-2,607	-2,405
Other external costs	-31,532	-25,851	–	-2,043	-31,532	-27,894
Employee benefits	-49,593	-45,878	–	-2,030	-49,593	-47,908
Depreciation and
amortization	-8,834	-7,946	–	-733	-8,834	-8,679
Operating result	40,036	41,133	–	-4,520	40,036	36,613
Financial income	1,441	111	–	–	1,441	111
Financial costs	-214	-199	–	-7	-214	-206
Result after financial
items	41,262	41,045	–	-4,527	41,262	36,518
Tax on profit/loss for the
year	-8,385	-7,726	–	–	-8,385	-7,726
Deferred tax	-149	–	–	–	-149	–
Net result	32,729	33,319	–	-4,527	32,729	28,791

During 2023 ContextVision reports its sales, costs and results in one operating segment: Medical Imaging (continued operations). This reflects how the management review and measure the results. The operating segment Medical Imaging comprise research, product development and OEM sales within medical imaging. The product portfolio consists of products developed for a variety of modalities, such as Ultrasound, X-ray, MRI, Mammography, CT and iRV.

decided to change strategy and close down the busi
ness unit. The remaining part of the business was
transferred to a subsidiary; Inify Laboratories AB. The
shares in the subsidiary were distributed to Context
Vision's shareholders at the beginning of 2022.

Contractual balances	2023-12-31	2022-12-31
Contractual receivables	24 188	28,502
Contractual liabilities	651	2,588

Receivables relates to accounts receivables of 22,467 KSEK (27,460) and accrued income of 1,721 KSEK (1,224). Both accounts receivables and accrued income relates to receivables from customers where ContextVision has fulfilled its performance

commitment and has an unconditional right to payment. Contract liabilities relates to prepayments from customers. All contractual liabilities at beginning of each fiscal year relates to performance commitments that has been fulfilled during the current fiscal year.

The operating segment Digital Pathology (discontinued operations) included previous research and product development of products for the growing market in digital pathology. In November 2021, the Board

Note 3 Intra-group purchases /sales and related party transactions

560 KSEK.

see note 5.

arm's length.

Intra-group purchases and sales: Sales and marketing is handled by the Parent Company as well as by the foreign subsidiary. All investments in development are concentrated to the Parent Company in Sweden. Costs in the subsidiary are invoiced to the Parent Company. Total compensation from the Parent Company to the subsidiary amounts to KSEK 7,303 (6,122).

Related party transactions:

Transearch International Sweden AB – an executive search firm where Olof Sandén, Chairman of the

Note 4 Auditor's fees

Audit work involves the audit of the annual report and financial accounting as well as the administration by the Board and the CEO, as well as further work or consultation related to the duties of the Group's auditors

and resulting from observations noted during such examinations or implementation of such other tasks. All other tasks are defined as other work.

	GROUP		PARENT COMPANY
Ernst & Young AB	2023	2022	2023	2022
Audit work	–	–	–	–
Audit work except from assignment	–	–	–	–
Tax advisory	–	–	–	–
Other work	–	78	–	78
Total	–	78	–	78

	GROUP		PARENT COMPANY
Grant Thornton Sweden AB	2023	2022	2023	2022
Audit work	850	750	850	750
Audit work except from assignment	–	–	–	–
Tax advisory	–	–	–	–
Other work	138	157	138	157
Total	988	907	988	907

Note 5 Personnel

	GROUP		PARENT COMPANY
Average number of employees	2023	2022	2023	2022
Men	25	26	24	25
Women	11	11	11	11
Total	36	37	35	36

	GROUP		PARENT COMPANY
Salaries and other remuneration	2023	2022	2023	2022
Board Members and CEO (of which the CEO)	3,153 (2,653)	2,614 (2,114)	3,153 (2,653)	2,614 (2,114)
Other employees	29,148	28,236	26,312	25,538
Total	32,301	30,850	29,465	28,152

	GROUP		PARENT COMPANY
Social security expenses	2023	2022	2023	2022
Pension costs for Board Members and CEO	467	357	467	357
Pension costs for other employees	3,890	3,586	3,419	3,504
Statutory and contractual social security expenses	9,516	9,368	9,321	9,127
Total	13,873	13,311	13,207	12,988

All pension plans are defined contribution plans and no outstanding obligations exists towards employees nor to the Board of Directors. During the year capitalized

development expenses of personnel costs have been recorded with total MSEK 0.0 (1.8).

Salaries and remuneration for the CEO and the Board 2023	Directors' remunera tion1)	Fixed salary	Variable salary	Pension	Other remunera tion	Total
Gerald Pötzsch, CEO2)	–	2,139	510	467	4	3,120
Olof Sandén, Chairman	350	–	–	–	–	350
Martin Ingvar, member of the Board	230	–	–	–	–	230
Martin Hedlund, member of the Board	–	–	–	–	–	–
Sven Günther-Hanssen, member of the Board	–	–	–	–	–	–
Total	580	2,139	510	467	4	3,700

Salaries and remuneration for	Directors' remunera	Fixed	Variable		Other remunera
the CEO and the Board 2022	tion1)	salary	salary	Pension	tion	Total
Gerald Pötzsch, CEO2)	–	800	241	146	2	1,189
Ola Lindblad, interim CEO2)	–	810	255	211	6	1,282
Olof Sandén, Chairman	300	–	–	–	–	300
Martin Ingvar, member of the Board	200	–	–	–	–	200
Martin Hedlund, member of the Board	–	–	–	–	–	–
Sven Günther-Hanssen, member of the Board	–	–	–	–	–	–
Magne Jordanger, member of the
Board	–	–	–	–	–	–
Total	500	1,610	496	357	8	2,971

1) The Chairman's remuneration is decided by the AGM, in 2023 the level was set at SEK 350 K (300). At the same meeting, it was decided that the remuneration to other Board members, who are not also main shareholders, should be 230 KSEK (200).

There are 4 (5) members of the Board, 4 are men and 0 women.

2) CEO Gerald Pötzsch was appointed in August 2022. Pötzsch is entitled to 6 months of notice, both in case of termination by the Group, or if he terminates his employment himself. Pötzsch has a fixed salary and an individual, performance-based bonus.

Pension payments for CEO during 2023 has been 467 KSEK (357) during the year. The age of retirement of the CEO is 65 years.

All the employees of the Group are part of an incentive program, represented by a profit-sharing foundation. The foundation receives funds if the Group successfully reaches specified objectives, related to sales and operations. The foundation invests in ContextVision shares, purchased on the stock market. The employees share of the foundation is based on hours worked during the year. Funds for the Foundation have been reserved for 2023 with 1,581 KSEK.

Note 5 cont.

Remuneration to the Board of Directors and senior executives

At the AGM in May 2023 the following guidelines regarding remuneration to senior executive in ContextVision were approved. An increase in variable compensation to a maximum of 35% of fixed annual salary and that the severance pay amounts to a maximum of twelve monthly salaries. These guidelines should include the CEO. The guidelines do not include remuneration decided by the AGM. Determination of salary and other remuneration to the Board is decided by the AGM. The guidelines shall apply to remuneration that is agreed upon, and changes made to already agreed remuneration, after the date when the guidelines were adopted by the AGM and thus have no effect on previously agreed commitments.

For more information, see Remuneration report 2023.

Guidelines for promoting the Group's business strategy, long-term interests and sustainability

Successful implementation of the Group's business strategy and assuring of the Group's long-term interests, including its sustainability, requires the Group to be able to recruit and retain qualified employees. Therefore, the Group need to offer competitive compensation. These guidelines enable senior executives to be offered a competitive total remuneration. The Group's business strategy is further described in the annual report.

Remuneration

Remuneration to senior executives may consist of fixed salary, variable remuneration, pension and other conventional benefits such as health insurance, life insurance and company car. The total cost of benefits may not exceed 15 percent of the fixed salary. The fulfilment of criteria for payment of variable compensation must be measurable over a period of one or more years. The variable remuneration shall be limited to a maximum annual payment and shall not exceed 35 percent of the fixed annual salary. Variable remuneration must be linked to predetermined and measurable criteria that can be financial or non-financial. They can also be individualized quantitative or qualitative goals. The criteria must be designed so that the main company's business strategy and long-term interests are met, including its sustainability.

Pension

Pension benefits for senior executives must comply with the Group's general pension plan, must be a defined contribution and amount to a maximum of 30 percent of the annual salary. The retirement age for the CEO is 65 years.

Termination of employment

The CEO has the right to 6 months' notice, both in the event of his own termination or in the event of termination from the Group's side. In addition, the CEO is entitled to severance pay corresponding to a maximum of twelve monthly salaries.

Salary and terms of employment for employee

When preparing the proposal for guidelines, salaries and terms of employment for the Group's employees have been taken into account and formed part of the decision basis.

Decision-making process for establishing, reviewing and implementing the guidelines

The guidelines shall apply until new guidelines have been adopted by the AGM. The Board is responsible for creating proposals for new guidelines at least every four years and submitting the proposal for resolution at the AGM. The Board shall follow up and evaluate the application of the guidelines and shall prepare a remuneration report for each financial year which shall be made available on ContextVision's website no later than three weeks before the AGM.

Deviation from guidelines

The Board of Directors may deviate from these guidelines for remuneration to senior executives, if there are special reasons for this in an individual case and a deviation is necessary to meet the Group's longterm interests.

Note 6 Tax on result for the year

		GROUP		PARENT COMPANY
	2023	2022	2023	2022
Current tax	-8,385	-7,726	-8,292	-7,650
Deferred tax	-149	–	–	–
Total tax on profit for the year for continued operations	-8,534	-7,726	-8,292	-7,650

The difference between recorded tax costs and tax costs based on the applicable tax rates consists of:

		GROUP		PARENT COMPANY
	2023	2022	2023	2022
Pre-tax profit/loss from continued operations	-41,262	-41,045	-41,057	-36,709
Pre-tax profit/loss from discontinued operations	–	-4,527
Pre-tax profit/loss	-41,262	-36,519	-41,057	-36,709
Tax according to the applicable tax rates	-8,500	-7,523	-8,458	-7,562
Non deductible cost	-86	-65	-86	-65
Effect from different tax rates in the Group	-18	-16	–	–
Income on tax allocation reserve	-1	-1	-1	-1
Other	220	-121	252	-22
Deferred tax	-149	–	–	–
Recorded tax expense	-8,534	-7,726	-8,292	-7,650
Tax from continued operations	-8,534	-7,726
Tax from discontinued operations	–	–

The applicable tax rate for the Group is 20.6% (20,6) and for the Parent Company 20.6% (20,6).

Note 7 Leasing agreements

Since ContextVision is a lessee, the leasing assets are reported as a right of use in the balance sheet, while the future obligation to the lessor is reported as a liability in the balance sheet. The Group mainly has lease agreements for office premises. The agreements normally have maturities between 3 to 5 years, with opportunities for extension and termination to create flexibility. Management continuously assesses whether it is likely that the extension or termination conditions will be utilized. ContextVision uses the exception rule for short-term leases and leases where the underlying asset has a low value, such as certain office equipment where the amounts have been assessed is not significant.

Right-of-use assets per asset category (KSEK)

	2023-12-31	2022-12-31
Office and storage
premises	5,903	5,161
Office equipment	–	–
Total right-of-use	5,903	5,161
assets

In 2023, the Group had costs for short-term leasing contracts and leasing of low-value assets amounting to KSEK 35.

No write-downs of right-of-use assets have been made during 2023.

Change in right-of-use assets (KSEK)

	Offices	Equipment	Total
Opening balance, Jan 1, 2023	5,161	–	5,161
New leasing
agreements	5,192	–	5,192
Terminated leasing
agreements	–	–	–
Depreciation	-4,450	–	-4,450
Write down	–	–	–
Adjustment
previous period	–	–	–
Closing balance, Dec 31, 2023	5,903	-	5,903

Leasing liabilities (KSEK)

	2023-12-31	2022-12-31
Current leasing liabilities	-3,668	-2,546
Non-current leasing liabilities	-1,513	-1,881
Total leasing liabilities	-5,181	-4,427

Interest expenses relating to leasing liabilities of total 213 KSEK have affected the results for 2023.

During 2023, the Group had cash flow-affecting leasing and rental expenses amounting to 4,700 KSEK (4,710).

Change in leasing liabilities (KSEK)

	Offices	Equipment	Total
Opening balance, Jan 1, 2023 New leasing	-4,427	–	-4,427
agreements	-5,192	–	-5,192
Amortization	4,439	–	4,439
Write down Adjustment	–	–	–
previous period	–	–	–
Closing balances, Dec 31, 2023	-5,180	–	-5,180

Amounts reported in Report on income and other comprehensive income

2023	2022
-4 450	-4,457
-213	-204
-37	-49
-4 700	-4,710

In 2023, ContextVision AB has entered into a new lease for the Linköping office. The leasing agreement is 1,561 KSEK per year and extends to 31/12/2025.

	GROUP		PARENT COMPANY
Leasing agreements 2023	Equipment	Premises	Equipment	Premises
Fees due in 2023	55	5,439	55	5,439
Fees due 2024 - 2026	46	2,414	46	2,414
Fees due 2027 or later	–	–	–	–
Total	102	7,854	102	7,854

Note 8 Deferred taxes

	GROUP
Reported amounts refer to temporary differences attributable to:	2023	2022
Leasing liabilities	1,067	912
Amounts offset against deferred tax liabilities in accordance with the offsetting rules	-1,216	-1,063
Net deferred tax liabilities	-149	0

GROUP		PARENT COMPANY
Deferred tax receivables/tax liabilities	2023	2022	2023	2022
Deferred tax liability on fair valuation on currency
hedging	-151	–	-151	–
Deferred tax liability on reserves	297	-146	–	–
Deferred tax receivable on fair valuation on currency
hedging	–	327	–	327
Total deferred tax	146	181	-151	327

Note 9 Capitalized expenditure for development work

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Opening balance acquisition value	65,615	61,942	65,615	61,942
Investments for the year	110	3,673	110	3,673
Closing balance accumulated acquisition value	65,725	65,615	65,725	65,615
Opening balance depreciation	-54,314	-51,560	-54,314	-51,560
Depreciation for the year	-3,322	-2,754	-3,322	-2,754
Closing balance accumulated depreciation	-57,636	-54,314	-57,636	-54,314
Opening balance write-downs	-1,760	-1,760	-1,760	-1,760
Closing balance accumulated write-downs	-1,760	-1,760	-1,760	-1,760
Closing balance according to plan residual value continued operations	6,329	9,541	6,329	9,541

The Group's capitalized development expenditure for 2023 relates to a total of one development project, AI Inference.

Capitalized costs from previous years refer to various products related to the Group's core technology GOP View, mainly within Ultrasound.

Depreciation of intangible assets is 5 years. Straight line depreciation is applied from the product launch to the end of the period. Regarding all capitalized development costs, for both completed and

ongoing projects, value in use has been calculated to make sure it does not fall below book value. For more information see note 1, supplementary disclosures.

Personnel costs for research and development during the year, not capitalized, amounted to MSEK 13.1 (15.0). During the year ContextVision has capitalized expenses for product development by MSEK 0.1 (3.7), whereof MSEK 0.0 (1.8) refers to personnel.

Note 10 Equipment

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Opening balance acquisition value	13,470	12,288	13,470	12,288
Investments for the year	775	1,154	775	1,154
Discontinued operations (note 22)	-107	28	-107	28
Closing balance accumulated acquisition value	14,138	13,470	14,138	13,470
Opening balance depreciation	-9,770	-8,552	-9,770	-8,552
Depreciation for the year	-1,027	-1,223	-1,027	-1,223
Discontinued operation (note 22)	0	4	0	4
Closing balance accumulated depreciation	-10,797	-9,770	-10,797	-9,770
Closing balance residual value according to plan for continued operations	3,341	3,700	3,341	3,700
The period of use for equipment is 5 years. Depreciation is linear.

Note 11 Shares in group companies

Subsidiaries	Corporate registration no.	Share capital/ Voting rights, %	Number of shares	Opening balance Jan 1, 2023	Closing balance Dec 31, 2023
ContextVision Inc.,
State of Illinois, USA	36-4333625	100/100	1,000	217	217
Total				217	217

Note 12 Other long-term receivables

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Depositions	926	926	926	926
Total	926	926	926	926

Note 13 Inventories

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Inventories (hardware)	1,854	1,272	1,854	1,272
Total	1,854	1,272	1,854	1,272

Expense of goods for resale, totals to KSEK 2,607 (2,313) for both the Parent Company and the Group.

Note 14 Accounts receivable and other receivables

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Accounts receivable	22,695	28,269	22,695	28,269
Less: reservation for uncertain accounts receivables	-229	-809	-229	-809
Other receivables	–	1,464	–	1,464
Total	22,467	28,924	22,467	28,924

During the year, the accrual for bad debt loss decreased to KSEK 229 (809). See note 24 for additional information on accounts receivables.

Note 15 Prepaid expenses and accrued income

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Prepaid rent	209	–	1,315	1,276
Other prepaid expenses	1,251	1,028	1,251	714
Accured income	1,721	1,224	1,721	1,224
Total	3,181	2,252	4,287	3,214

Note 16 Equity

The number of shares in ContextVision is 77,367,500 (77,367,500). The quota value is SEK 0.03 (0.03). All shares have equal voting rights.

Total number of shares and share capital	Total shares	Total share capital (SEK K)
31 Dec, 2023	77,367,500	2,084
31 Dec, 2023	77,367,500	2,084

Note 17 Accounts payable and other liabilities

	GROUP		PARENT COMPANY
	2023	2022	2023	2022
Advance payment from customers	651	2,588	651	2,588
Accounts payable	5,348	3,335	5,348	3,161
Liabilities to subsidiaries	-	–	1,483	1,191
Other liabilities	1,014	658	732	3,115
Total	7,013	6,581	8,214	10,055

Note 18 Accrued expenses and deferred income

		GROUP		PARENT COMPANY
	2023	2022	2023	2022
Salaries, vacation pay and payroll overhead	9,994	8,183	9,994	8,183
Other accrued cost	1,518	1,735	1,419	1,484
Total	11,512	9,918	11,413	9,667

Note 19 Pledged assets and contingent liabilities

		GROUP		PARENT COMPANY
	2023	2022	2023	2022
Mortgage	2,000	2,000	2,000	2,000
Depositions	926	926	926	926
Cash and cash equivalents	1,306	1,288	1,306	1,288
Total	4,232	4,214	4,232	4,214

Corporate mortgages of SEK 2 M have been taken out for the benefit of Svenska Handelsbanken as security for forward transactions in foreign currency. SEK 1.3 M are taken out in a rent guarantee for a lease for the Stockholm office.

Depositions refer to amounts deposited as a security for salary payments to employees abroad. There are no contingent liabilities in 2022 and 2023.

Note 20 Tax allocation reserve

		PARENT COMPANY
	2023	2022
Tax allocation reserve tax 2021	680	680
Total	680	680

Note 21 Proposed appropriation of earnings, Parent Company

Proposed Appropriation of Earnings 2023

At the General Meeting's disposal SEK
Retained earnings and fair value reserve	19,909,341
Profit/loss for the year	32,764,584
	52,673,925
The Board proposes:
Profit carried forward	52,673,925

Note 22 Discontinued operations

On November 15, 2021, the Group announced that the Board decided to change the strategic direction of the business unit Digital Pathology and thereby discontinue the business unit in its current form. In connection with the decision, the wholly owned subsidiary Inify Laboratories AB was formed with the intention of focusing its future activities on the establishment of an AI-based pathology lab service.

At an Extraordinary General Meeting held on December 10 in 2021, it was decided that the subsidiary INIFY Laboratories AB will become an independent company through a dividend of the subsidiary shares to the existing shareholders in ContextVision. Reconciliation day for the dividend was decided to be on February 9, 2022.

In 2022, before the dividend was paid, tangible assets of SEK 0.7 M, intangible assets of SEK 10.1 M and intellectual property rights and bank funds of SEK 20.5 M which corresponds to a total value of SEK 31.3 M was transferred from ContextVision AB to Inify Laboratories AB.

According to the above decision, the Digital Pathology business unit is classified as a discontinued operations in accordance with IFRS 5. Net profit from the discontinued operations are presented separately in the income statement for both the current and previous years. The assets for dividends to shareholders are classified in the balance sheet as Assets for dividends to the owners.

Consolidated Income Statement

Discontinued Operations (SEK K)	2023	2022
Other income1)	–	288
Total operating income	–	288
Goods for resale	–	-1
Other external costs	–	-2,043
Personnel costs	–	-2,030
Depreciation and amortization	–	-733
Operating result	–	-4,520
Financial income	–	–
Financial costs	–	-7
Result after financial items discontinued operations	–	-4,527
Tax on profit/loss for the yearl	–	–
Net result from discontinued operations	–	-4,527

1) Other income refers to re-invoicing of costs to Inify Laboratories AB in 2022.

Reported values of assets and liabilities at the reporting date

Assets (SEK K)	2023	2022
Intangible fixed assets	–	–
Tangible fixed assets	–	–
Cash and cash equivalents	–	–
Total assets	–	–

Net cash flow from discontinued operations as follows:

Cashflow from discontinued operations	2023	2022
Cash flow from discontinued operating activities	–	-3,936
Cash flow from discontinued investing activities	–	–
Cash flow from discontinued financing activities	–	–
Cash flow from discontinued operations for the year	–	-3,936
Earnings per share	2023	2022
Earnings per share	0.00	-0.06
Earnings per share after dilution	0.00	-0.06

Note 23 Earnings per share and dividend

Earnings per share

Both earnings per share before and after dilution have been calculated by using the earnings attributable to the shareholders in the Parent Company ContextVision AB as the numerator.

Earnings per share before/after dilution	2023	2022
Average numbers of shares	77,367,500	77,367,500
Net result from continued & discontinued operations	32,729	28,791
Earnings per share before/after dilution	0,42	0.37
Earnings per share continued operations	2023	2022
Average numbers of shares	77,367,500	77,367,500
Net result from continued operations	32,729	33,319
Earnings per share continued operations	0,42	0.43
Earnings per share discontinued operations	2023	2022
Average numbers of shares	77,367,500	77,367,500
Net result from discontinued operations	–	-4,527
Earnings per share discontinued operations	0.00	-0.06

Note 23 cont.

Dividend

At an Extraordinary General Meeting held on December 10 in 2021, it was decided that the subsidiary INIFY Laboratories AB will become an independent company through a dividend of the subsidiary shares to

Note 24 Financial risks

A financial policy adopted by the Board of Directors constitutes the framework for how the Group manages financial risks. The Group's financial instruments consist of cash and bank deposits, accounts receivable (trade), accounts payable, other short-term liabilities relating to operations and derivatives (primarily forward exchange contracts).

the existing shareholders in ContextVision. Reconciliation day for the dividend was decided to be on February 9, 2022. The dividend was SEK 31,753 K, which corresponds to a dividend of SEK 0.41 per share.

The following is a summary of the Group's financial risks:

Interest rate risk

The Group's market risk exposure relates only to holdings at bank accounts, why the interest rate risk is limited to changes in the market interest rate. The interest rate risk is very low.

Reported and fair value is included in the balance sheet according to the below:

	Derivate instrument used in the accounting of currency hedging	Loan and trade receivables	Financial debts valued at accrued acquisition value	Total reported value	Total fair value
Group 2023
Other long term receivables		926		926	926
Accounts receivables and other
receivables		22,467		22,467	22,467
Leasing assets		5,903		5,903	5,903
Derivates	1,013			1,013	1,013
Cash and cash equivalents		58,144		58,144	58,144
Leasing liabilities			-5,180	-5,180	-5,180
Accounts payable and other debts			-7,014	-7,014	-7,014
Total	1,013	87,440	-12,194	76,259	76,259

	Derivate instrument used in the accounting of currency hedging	Loan and trade receivables	Financial debts valued at accrued acquisition value	Total reported value	Total fair value
Group 2022
Other long term receivables		926		926	926
Accounts receivables and other
receivables		27,460		27,460	27,460
Derivates	-2,457			-2,457	-2,457
Cash and cash equivalents		41,858		41,858	41,858
Accounts payable and other debts			-6,581	-6,581	-6,581
Total	-2,457	70,244	-6,581	61,206	61,206

		PARENT
Change in liabilities from financing activities	GROUP	COMPANY
Opening balance January 1, 2022	-9,086	–
Cash flow	–	–
Leasing liabilities	4,659	–
Currency exchange rate differences	–	–
Closing balance December 31, 2022 /
Opening balance January 1, 2023	-4,427	–
Cash flow	–	–
Leasing liabilities	-753	–
Currency exchange rate differences	–	–
Closing balance December 31, 2023	-5,180	–

2024 Interest-bearing			2025–2026			2027 or later		Total
liabilities	Capital	Interest	Capital	Interest	Capital	Interest	Capital	Interest
Liabilities to credit institutions
Leasing liabilities	-3,668	-98	-1,512	-21	–	–	-5,180	-119
Total liabilities to credit institutions	-3,668	-98	-1,512	-21	–	–	-5,180	-119
Other interest-bearing liabilities	–	–	–	–	–	–	–	–
Total interest-bearing liabilities	-3,668	-98	-1,512	-21	–	–	-5,180	-119

Note 24 cont.

Age analysis of reported assets past due	GROUP		PARENT COMPANY
date but not written-down	2023	2022	2023	2022
Non past due	16,649	19,104	16,649	19,104
< 30 days	2,544	4,736	2,544	4,736
30-90 days	1,898	3,418	1,898	3,418
91-180 days	1,376	202	1,376	202
Total	22,467	27,460	22,467	27,460

Most of the overdue receivables were settled shortly after the turn of the year. Regarding the remaining overdue invoices, payment is expected shortly.

Change in bad debts	GROUP		PARENT COMPANY
Provision for bad debts	2023	2022	2023	2022
Opening balance	809	–	809	–
Provision for bad debt	-580	809	-580	809
Provisions written off	-	-	-	-
Closing balance	229	809	229	809

The Group's write-down of accounts receivable is carried out in accordance with the simplified approach for reporting expected credit losses. This means that a provision for expected credit losses is booked for the remaining term, which is expected to be less than one year for all receivables above. The Group books a provision for expected credit losses based on individual assessments of receivables where known information about the counterpart and forward-looking information is taken into consideration. ContextVision writes off a receivable when it no longer can be expected to receive payment and when active measures to receive payment have been finalized.

Customers

There are 2 (2) individual customers representing more than 10 percent each of the total revenue during the year. The largest customer representing 18 percent and the other one representing 12 percent of the total revenue during 2023.

By year end, there where 2 individual customers that each represented 10 percent or more of the accounts receivable. These 2 customers together represented 40 percent of the accounts receivable. The Group has had a long relation with most of the customers and consider them financially stable. The creditability of the accounts receivable is considered high.

Fair value and reported value

IFRS 13 Valuation at fair value contains a valuation hierarchy regarding input data for the valuations. This valuation hierarchy is divided into three levels:

Level 1: according to prices quoted on an active market for the same financial instrument.

Level 2: based on directly or indirectly observable market data that is not included in level 1.

Level 3: based on input data that is not observable in on the market.

The Group applies level 2 according to the valuation hierarchy, when valuing derivatives (forward exchange contracts) at fair value by using current market prices and currencies on the balance sheet date.

Currency risk

Transaction exposure

During 2023 the invoicing in EUR represented about 62 percent (61) of total invoicing, the invoicing in USD represented about 24 percent (26), and the invoicing in JPY represented 13 percent (13). The Group hedges its foreign currency exposure on a regular basis. By Dec 31, 2023, there were currency hedging contracts for KEUR 1,900 to an average exchange rate of 11.33 SEK/EUR, currency hedging contracts for KUSD 1,000 to an average exchange rate of 10.34 SEK/USD and currency hedging contracts for KJPY 70,000 at an average exchange rate of 0.0768 SEK/JPY.

Translation exposure balance sheet

Translation exposure arises on consolidated statements when the net assets in the Group are converted to SEK. The translation differences relating to net assets in currencies other than SEK reported in other comprehensive income during 2023 were KSEK 558 (625).

Net translation exposure per currency, SEK K	2023-12-31	Degree of hedging contracts, %
EUR	1,294	77
USD	580	69
JPY	33,362	60
NOK	0	0

Translation exposure

Only a small part of the Group's operations are conducted abroad. Therefore, the exposure to translation differences is considered limited.

Sensitivity analysis	2023	2022
A 1% change in interest rates on liquid funds, is estimated to affect the calculated result after tax/ affect equity per December 31 with approximately:	+/-581	+/-419
A change in the exchange rate EUR / SEK with 5% is expected to affect the recalculated result after tax/affect equity at Decem ber 31 with approximately:	+/-718	+/-855
A change in the exchange rate of USD / SEK by 5% is expected to affect the recalculated result after tax/affect equity at Decem ber 31 with approximately:	+/-291	+/-403
A change in the exchange rates JPY / SEK by 5% is expected to affect the recalculated result after tax/affect equity at Decem ber 31 with approximately:	+/-118	+/-142

Credit risk

In connection with the signing of an agreement with a customer, an individual assessment of the solvency of that customer is conducted. When there is some question as to a customer's solvency, a letter of credit or pre-payment is used.

Note 25 Significant events after the balance sheet date

No significant events have occurred after the balance sheet date.

Signatures

The undersigned hereby assures that the Group financial statement and the annual report is prepared in accordance with international accounting standards, IFRS, as approved by EU, and generally accepted accounting principles. Hence giving a true and fair description of the Group's financial status and result, as well as a directors report fairly describing the business, financial condition, result, risks and uncertainties associated with the Group.

Linköping on April 11, 2024

Olof Sandén Martin Hedlund Chairman of the Board Member of the Board

Sven Günther-Hanssen Martin Ingvar Member of the Board Member of the Board

Gerald Pötzsch CEO

Our audit report was rendered on April 11, 2024. Grant Thornton Sweden AB

Joakim Söderin

Authorized Public Accountant

Auditor's Report

N.B. The English text is a translation of the official version in Swedish. In the event of any con-flict between the Swedish and English version, the Swedish shall prevail.

To the general meeting of the shareholders of ContextVision AB (publ.) Corporate identity number 556377 - 8900

Report on the annual accounts and consolidated accounts Opinions

We have audited the annual accounts and consolidated accounts of ContextVision AB (publ.) for the year 2023 except for the corporate governance statement on pages 36 – 40.

The annual accounts and consolidated accounts of the company are included on pages 30 - 63 in this document.

In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of parent company as of 31 December 2023 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2023 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the corporate governance statement on pages 36–40.

The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.

We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group.

Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company's Board of Directors in accordance with the Audit Regulation (537/2014) Article 11.

Basis for Opinions

We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companies within the EU.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Key Audit Matters

Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period, and include, among other things, the most important assessed risks of material misstatement. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as a whole, but we do not provide a separate opinion on these matters.

License revenue recognition

The Group's reported revenue amounts to SEK 132.2 million during the financial year 2023 and consists mainly of license revenues for image enhancement to companies that manufacture imaging machines. License revenue is recognized when control of the

goods is transferred to the customer, which coincides with delivery and the customer's acceptance of the goods. After delivery, the company has no additional obligations relating to the delivery.

The Group's revenue amounts to significant amounts, which means that this is a Key Audit Matter in our audit. Information about accounting policies for revenue can be found in Note 1 in the Annual Report of ContextVision AB (publ.).

Our audit

Our audit has included the following audit actions but has not been limited to:

• Review of significant transaction flows and review of the company's routines and internal controls for revenue recognition.
• Review with the help of data analysis of that delivered licenses have also been monetized and paid in.
• Sample review that license revenues are consistent with customer agreements.
• Review that the accounting policies applied are in accordance with the rules of IFRS and that the disclosures made in the annual accounts in all material respects meet the requirements of the Annual Accounts Act and IFRS.

Other Information than the annual accounts and consolidated accounts

This document also contains other information than the annual accounts and consolidated accounts and is found on pages 1 – 29 and 67 – 68. The Board of Directors and the Managing Director are responsible for this other information.

Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information.

In connection with our audit of the annual accounts

and consolidated accounts, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated.

If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts and consolidated accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company's and the group's ability to continue as a going concern. They disclose as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so.

Auditor's responsibility

Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of the company's internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director.
• Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company's and the group's ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions. We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies

in internal control that we identified. We must also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material misstatement, and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes disclosure about the matter.

Report on other legal and regulatory requirements

The auditor's audit of the administration of the Board of Directors and the Managing Director and the proposed appropriations of the company's

profit or loss Opinions

In addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of ContextVision AB (publ.) for the year 2023 and the proposed appropriations of the company's profit or loss.

We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

Basis for Opinions

We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor's Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors is responsible for the proposal for appropriations of the company's profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's and the group's type of operations, size and risks place on the size of the parent company's and the group's equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the company's organization and the administration of the company's affairs. This includes among other things continuous assessment of the company's and the group's financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company's financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of

Directors' guidelines and instructions and among other matters take measures that are necessary to fulfill the company's accounting in accordance with law and handle the management of assets in a reassuring manner.

Auditor's responsibility

Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect:

• has undertaken any action or been guilty of any omission which can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations of the company's profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company's profit or loss are not in accordance with the Companies Act.

As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations of the company's profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company's situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of

Directors' proposed appropriations of the company's profit or loss we examined the Board of Directors' reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act.

The auditor's examination of the Esef report

Opinion

In addition to our audit of the annual accounts and consolidated accounts, we have also examined that the Board of Directors and the Managing Director have prepared the annual accounts and consolidated accounts in a format that enables uniform electronic reporting (the Esef report) pursuant to Chapter 16, Section 4(a) of the Swedish Securities Market Act (2007:528) for ContextVision AB (publ.) for the year 2023. Our examination and our opinion relate only to the statutory requirements.

In our opinion, the Esef report has been prepared in a format that, in all material respects, enables uniform electronic reporting.

Basis for opinion

We have performed the examination in accordance with FAR's recommendation RevR 18 Examination of the Esef report. Our responsibility under this recommendation is described in more detail in the Auditors' responsibility section. We are independent of Context-Vision AB (publ.) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the Esef report in accordance with the Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528), and for such internal control that the Board of Directors and the Managing Director determine is necessary to prepare the Esef report without material misstatements, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to obtain reasonable assurance

whether the Esef report is in all material respects prepared in a format that meets the requirements of Chapter 16, Section 4 a of the Swedish Securities Market Act (2007:528), based on the procedures performed. RevR 18 requires us to plan and execute procedures to achieve reasonable assurance that the Esef report is prepared in a format that meets these requirements. Reasonable assurance is a high level of assurance, but it is not a guarantee that an engagement carried out according to RevR 18 and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Esef report. The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

The examination involves obtaining evidence, through various procedures, that the Esef report has been prepared in a format that enables uniform electronic reporting of the annual accounts and consolidated accounts. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement in the report, whether due to fraud or error. In carrying out this risk assessment, and in order to design audit procedures that are appropriate in the circumstances, the auditor considers those elements of internal control that are relevant to the preparation of the Esef report by the Board of Directors and the Managing Director, but not for the purpose of expressing an opinion on the effectiveness of those internal controls. The examination also includes an evaluation of the appropriateness and reasonableness of assumptions made by the Board of Directors and the Managing Director.

The procedures mainly include a validation that the Esef report has been prepared in a valid XHMTL format and a reconciliation of the Esef report with the audited annual accounts and consolidated accounts. Furthermore, the procedures also include an assessment of whether the consolidated statement of financial performance, financial position, changes in equity, cash flow and disclosures in the Esef report

have been marked with iXBRL in accordance with what follows from the Esef regulation.

The auditor's examination of the corporate governance statement

The Board of Directors is responsible for that the corporate governance statement on pages 36 – 40 has been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is conducted in accordance with FAR's standard RevR 16 The auditor's examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions.

A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2–6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and consolidated accounts and are in accordance with the Annual Accounts Act.

Grant Thornton Sweden AB, Kungsgatan 57, 111 22 Stockholm, was appointed auditor of ContextVision AB (publ.) by the general meeting of the shareholders on the 4 May 2022 and has been the company's auditor since the 4 May 2022.

Stockholm, according to the date indicated by the electronic signature..

Grant Thornton Sweden AB

Joakim Söderin

Authorised Public Accountant

Altumira®

ContextVision's image enhancement for X-ray systems. Altumira is designed with AI technology (deep learning) in combination with Context-Vision's leading GOP technology.

Artificial Intelligence (AI)

Artificial Intelligence is the intelligence exhibited by machines or software. It is also the name of the academic field that studies how to create computers and computer programs with intelligent behavior.

Deep Learning

Deep learning is the latest highly powerful technology within machine learning: machine learning with deep neural networks.

GOP®

ContextVision's methodology and technology base for image analysis and image enhancement, detecting structures in an image and relating them to their wider context in order to increase visualization accuracy.

GOPiCE®

ContextVision's real-time 3D volumetric image enhancement product, for OEM embedded software.

GOPView®/ PlusView®

The family names for ContextVision's older 2D product lines of OEM-embedded software.

Handheld ultrasound

A small ultrasound unit that can be held in the hand when performing the examination, e.g. smartphones and tab- let-based systems.

Image analysis

Processing a digital image in order to describe/classify its contents or extract quantitative measurements.

Image processing

A generic term used to describe the computation of

digital images, typically to enhance or analyze them.

Image enhancement

To improve the visual quality of a digital image by increasing the visibility of relevant structures, such as edge/contrast enhancement and suppression of noise or artifacts.

Machine learning

The study of computer algorithms that improve automatically through experience

Mammography

An X-ray method used to examine the human breast.

Modality

The various imaging methods used in medical imaging such as ultrasound, X-ray and magnetic resonance imaging.

MRI (Magnetic Resonance Imaging)

A non-invasive procedure, generated by variations in strong magnetic fields, to visualize internal organs or structures.

OEM

The acronym for Original Equipment Manufacturer.

POCUS

Point-of-Care Ultrasound. Referes to portable ultrasound products that may be used where the patient is located.

Rivent®

ContextVision's latest product family in image enhancement for ultrasound.

Rivent/Rivent Plus®

ContextVision's new image enhancement product for 2D ultrasound with extended processing capabilities.

Rivent 3D®

ContextVision's latest image enhancement product

for 3D ultrasound, introduced to the market at the end of 2022.

US (Ultrasound)

An imaging procedure where images are created from echoes of high-energy sound waves (ultrasound).

VolarView®

ContextVision's image enhancement product for handheld ultrasound units.

XR (X-ray)

An imaging technique that uses electromagnetic radiation tovisualize the internal structures of the body.

Business overview | Statutory Annual Report ContextVision Annual Report 2023 68

Administration Report | Risks | Five Year Summary | Corporate Governance Report | The share | Financial Reports | Notes | Auditor's Report | Other

Financial Calendar and Annual General Meeting

Financial calendar 2024

The AGM will be held on Tuseday, May 14, 2024 at the company office, Holländargatan 13 in Stockholm

1:st quarter 2024 Report	May 8
2:nd quarter 2024 Report	August 26
3:rd quarter 2024 Report	November 7
4:th quarter and 12 months 2024	February 20, 2025

Ordering financial information

The annual report and other financial reports can be found on the company's website, or can be ordered by e-mail: ir@contextvision.com

Participation and notification

Shareholders who wish to participate in the AGM with the right to vote shall

• be recorded as shareholder in the share register kept by Euroclear Sweden AB as of May 3, 2024, temporary registration for shareholders registered at Norska Verdipapirsentralen (VPS) is made by DNB Bank ASA, see below; and
• Give notice of attendance with the company no later than April 23, 2024 (via e-mail: ir@contextvision.com or by post: Holländargatan 13, 111 36 Stockholm, Sweden).

Shareholders whose shares are registered in the name of a nominee through the trust department of a bank or similar institution in Sweden must, to participate in the AGM, request that their shares are temporarily re-registered in their own names. Such registration must be completed by Euroclear Sweden AB on May 7, 2024 in order to be taken into account in the preparation of the share register. This means that shareholders who need to make such registration must notify the nominee thereof well in advance of this date.

Particular for shareholders registered at Norska Verdipapirsentralen (VPS)

• Shareholders registered at Norska Verdipapirsentralen (VPS) who are not registered at Euroclear Sweden AB, Sweden, and wish to be entitled to vote at the AGM must give notice of attendance to DNB Bank ASA at the latest on April 23, 2024, at 12:00 (noon) local time. The notice of attendance is made on a specific application form which will be sent by post to the shareholders and also be available on the compa- ny's website. The notice of attendance shall be sent to DNB Bank ASA, Verdipapirservice, PB 1600 Sentrum, N-0021 Oslo, or by e-mail to vote@dnb.no
• DNB Bank ASA will temporarily record the shares at Euroclear Sweden AB in the name of the shareholder. Shareholders recorded at VPS must also, as described above, give notice of attendance to the company in order to obtain the right to vote at the AGM.

Distribution Policy

Notice to attend the AGM will be published four to six weeks before the meeting in Post och Inrikes Tidningar as well as on the company's website: contextvision.com

There will also be a notification in Svenska Dagbladet that notice to attend the AGM has been published.

Contact person for investor relations: Richard Hallström, CFO richard.hallstrom@contextvision.com

Headquarters

ContextVision AB, Corp. Sales and Marketing, Stockholm, Sweden, Phone +46 8 750 35 50

Research and development

ContextVision AB, Linköping, Sverige, Phone +46 13 35 85 50

Sales Europe

ContextVision AB, Stockholm, Sverige, Phone +46 8 750 35 50

Sales North America

ContextVision Inc. Illinois, USA, Phone +1 720 326 3228

Sales Asia

ContextVision AB, Stockholm, Sverige, Phone +46 8 750 35 50

Sales South Korea

ContextVision, Business Sweden, Seoul, South Korea, Phone +82 2 739 1462

Sales China

ContextVision, Beijing, P.R.China, Phone +86 10 5815 6256

Sales Japan

Toyo Corporation, Tokyo, Japan, Phone +81 3 3245 13 51