Realfiction Holding AB ("Realfiction" or the "Company") announces that the Q3 Interim Report for July - September 2024 is now available. The full report is attached as a separate document and can also be downloaded from the Company's website (www.realfiction.com/investor-financial-reports). A printed copy can be ordered via investor@realfiction.com. Below is a brief summary of the Q3 Interim Report.
Important key information and figures:
• First DPT-related commercial agreement for revenue of SEK 7.4 million in Q3-2024
• Financial runway through the first half of 2025
• 287% increase in total revenue in Q3-2024 compared to Q3-2023
• 390% increase in gross profit in Q3-2024 compared to Q3-2023
• 26% increase (17.2 points) in gross profit margin in Q3-2024 compared to Q3-2023
• Solvency ratio of 55.8% at 30 September 2024 compared to 75.4% at 31 December 2023
During and after the period, Realfiction has experienced the following development in its business:
Directional Pixel TechnologyTM ("DPT"): In the third quarter, we achieved a significant milestone by completing our first DPT-related commercial agreement. This custom proof-of-concept project, valued at SEK 7.4 million, marked our first revenue from an undisclosed commercial customer and underscores the groundbreaking potential of DPT. During meetings and presentations, we have consistently encountered requests to validate the viability of our mass-production plans. We therefore also made significant strides toward establishing a scalable production framework for our Directional Pixel Technology (DPT). The production of a key DPT component is now being established. By producing the DPT key component ourselves, we simplify the path to licensing by providing a clear and scalable manufacturing framework. We have also entered preliminary discussions for a potential collaboration with a leading MicroLED technology company. Engineers from both sides are now collectively exploring the potential for DPT in MicroLED applications, a development that could redefine display capabilities in this emerging field. To meet growing demand, we are expanding our team in Taiwan to strengthen innovation, collaboration, and support for the commercialization of DPT.
Mixed Reality displays: In Q3, revenue from sales and rentals of our mixed reality displays reached nearly the same level as in Q3-2023, reflecting stable interest in these offerings. Notably, our order backlog going into Q4-2024 stands at SEK 1.4 million, compared to SEK 0.2 million at the same time last year, indicating a positive trend for the coming months. While our primary focus remains on advancing our DPT platform, the cash flows generated by our mixed reality business are fully reinvested into DPT, supporting its continued growth and development.
Financial runway: Like in the first half of 2024, we see a reduction of our cash outflows from operations and investments due to the shift to the commercialization phase from the development stage. This lower level of cash outflows and the payment from the first DPT commercial agreement, expected before the end of 2024, extends our liquidity through the first half of 2025 under the planned assumptions. As a result, we decided against utilizing the second tranche of our loan facility with Formue Nord.
CEO Clas Dyrholm comments: "Q3 has been a transformative quarter for Realfiction, marked by our first DPT-related commercial agreement and significant strides in establishing scalable production capabilities with Goworld. Our innovative DPT platform continues to attract attention, from MicroLED collaboration discussions to growing interest across industries. While our financial runway extends through the first half of 2025, we are investing in our R&D facilities in Taiwan and beyond to drive innovation and support commercialization. With these advances, I am optimistic about Realfiction's future and our ability to redefine the display industry together with our people, shareholders and partners. "
We highlight the following key figures from the Q3 Interim Report:
Q3 2024 (1 July - 30 September 2024)
• Revenue: TSEK 9,835 (Q3-2023: TSEK 2,539)
• Gross profit: TSEK 8,074 (Q3-2023: TSEK 1,647)
• Gross profit margin: 82.1% (Q3-2023: 64.9%)
• Result after financial items: TSEK -340 (Q3-2023: TSEK -1,529)
• Earnings per share: SEK -0.02 (Q3-2023: -0.08)
• Cash flow from operating activities: TSEK -4,082 (Q3-2023: TSEK -243)
• Equity: TSEK 51,724 (Q3-2023: TSEK 69,979)
Q1-Q3 2024 (1 January - 30 September 2024)
• Revenue: TSEK 14,046 (Q1-Q3 2023: TSEK 7,131)
• Gross profit: TSEK 10,657 (Q1-Q3 2023: TSEK 4,587)
• Gross profit margin: 75.9% (Q1-Q3 2023: 64.3%)
• Result after financial items: TSEK -16,971 (Q1-Q3 2023: TSEK -5,812)
• Earnings per share: SEK -0.86 (Q1-Q3 2023: -0.29)
• Cash flow from operating activities: TSEK -15,585 (Q1-Q3 2023: TSEK -5,489)
• Equity: TSEK 51,724 (Q1-Q3 2023: TSEK 69,979)
For more information about Realfiction Holding AB, please contact:
Clas Dyrholm, founder and CEO
Telephone: +45 25 22 32 81
Email: clas@realfiction.com
www.realfiction.com
Certified Adviser
Mangold Fondkommission AB is the company's Certified Adviser and can be contacted via ca@mangold.se or +46 8 503 015 50.
This information is information that Realfiction is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-11-28 07:45 CET.
About Realfiction Holding AB
Founded in Denmark in 2008, Realfiction is a provider of cutting-edge 3D display technologies designed for tomorrow's needs, featuring technological breakthroughs with its Directional Pixel Technology for LCD, OLED and microLED. These technologies support a wide range of use cases, including enhancing driving safety, medical imaging, immersive gaming and entertainment, digital signage, as well as applications in architecture, engineering, and design. The Company offers a comprehensive intellectual property portfolio tailored for OEMs and Tier-1 partners involved in developing and marketing displays for markets and industries requiring high-resolution multistereoscopic displays. All technologies are ready for licensing, and Realfiction is actively pursuing commercial licensing agreements and partnerships to pave the way to mass production. Realfiction's patent portfolio comprises 15 patent families with applications filed in multiple countries. Realfiction Holding AB's shares are publicly traded on Nasdaq Stockholm First North under the symbol "REALFI", with the share's ISIN code being SE0009920994.
