Realfiction Holding AB ("Realfiction" or the "Company") announces that the Q1 Interim Report for January - March 2025 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 Q1 Interim Report.
Commercial revenue from our Directional Pixel Technology ("DPT") go-to-market strategy have not yet materialized beyond the revenue recorded in Q3 2024. As anticipated, revenue from our legacy mixed reality displays declined in Q1 2025, reflecting our strategic shift in focus and resources toward the DPT business. With a SEK 20 million loan maturing in August, we are taking steps to extend the Company's financial runway and reach operational cash-flow positivity. Accordingly, we have today announced a rights issue and the refinancing of SEK 15 million of the loan.
Important key information and figures:
• Rights issue and loan refinancing to extend financial runway
• 49% decrease in total revenue Q1-2025 compared to Q1-2024
• 52% decrease in gross profit in Q1-2025 compared to Q1-2024
• 10.7% decrease (6.7 points) in gross profit margin in Q1-2025 compared to Q1-2024
• Solvency ratio of 53.2% at 31 March 2025 compared to 58.2% at 31 December 2024
During and after the period, Realfiction experienced the following development in its business:
Financial runway: With our loan from Fenja Capital (formerly Formue Nord) maturing in August, it is critical that we secure new funding. With clear momentum building, we believe a rights issue is the best path to creating shareholder value - enabling immediate execution of commercial initiatives while allowing current shareholders to participate at a discount to the market price.
As a result, we have today announced that we are carrying out a rights issue of units of shares and warrants which, together with a SEK 15 million refinancing of the Fenja Capital loan, is expected to provide the funding needed to commercialize DPT and position the company to reach operational cash-flow positivity from its licensing-based Directional Pixel Technology ("DPT") business model, based on our underlying forecast assumptions. The rights issue, with preferential rights for the Company's existing shareholders, amounts to up to approximately SEK 50 million before issue costs and is covered by guarantee commitments of up to approximately SEK 30 million.
Directional Pixel TechnologyTM: During the period, we achieved three significant milestones related to the commercialization of our DPT platform: 1) A major license and collaboration agreement was signed with a first licensee, a trusted Tier 2 supplier to leading automotive brands. 2) We presented a key DPT component - a specialized 15-inch Spatial Light Modulator (SLM) compatible with LCD, LED/MicroLED, and OLED panels - which marks a major step forward in advancing several of our collaboration projects toward commercial implementation. 3) We unveiled the world's first MicroLED-based 3D display, powered by DPT and developed in close cooperation with PlayNitride. It was presented for the first time at Touch Taiwan 2025 in April, where it drew major attention from the display industry as well as display tech enthusiasts.
As stated in a separate press release, our commercial focus segments for DPT are automotive displays, LED walls and MicroLED displays. In all of these segments, we see significant commercial traction and interest from existing and/or potential commercial partners. In the automotive industry, we are working with our first licensee to deliver a DPT-powered display product, and we are also in active discussions with two major groups of automotive brands and two major Tier 1 suppliers. Within LED walls, we are in discussions with multiple providers of LED wall products and potential mass manufacturing partners. One LED wall provider is in the process of securing a budget and timeline for a mass-production product. Within MicroLED, we are in discussions with PlayNitride about a follow-up project. We see a solid foundation for initiating a cash-based Non-Recurring Engineering ("NRE") collaboration as a direct continuation of our previous barter-based NRE collaboration.
Furthermore, we demonstrated DPT at the Samsung Electronics Global Sourcing Fair 2025, where key decision-makers were present, and presented DPT to Samsung Display Research Division, responsible for developing new display and device technologies. We received great attention and will continue discussions with Samsung in the near term.
Mixed Reality displays: As we had anticipated, revenue from our legacy mixed reality displays declined in Q1 2025, reflecting our strategic shift in focus and resources toward the DPT business. While we continue to value the positive cash flow these displays contribute, future revenue from this area is expected to be more opportunity-driven than actively developed.
CEO Clas Dyrholm comments: "With major commercial traction in our focus segments, we believe that we are close to a commercial tipping point for DPT, with the potential to scale up the DPT market uptake considerably when the first commercial products show everyone what our technology platform is capable of in real-world use. While we wish the process to advance faster, we are confident that we will be able to generate NRE and up-front payments from multiple customer projects in 2025 and 2026, followed by per-unit license fees from commercial products beginning in late 2026 or early 2027."
We highlight the following key figures from the Q1 Interim Report:
• Revenue: TSEK 874 (Q1-2024: TSEK 1,703)
• Gross profit: TSEK 491 (Q1-2024: TSEK 1,072)
• Gross profit margin: 56.2% (Q1-2024: 62.9%)
• Result after financial items: TSEK -8,409 (Q1-2024: TSEK -8,123)
• Earnings per share: SEK -0.42 (Q1-2024: -0.41)
• Cash flow from operating activities: TSEK -6,893 (Q1-2024: TSEK -5,381)
• Equity: TSEK 39,953 (Q1-2024: TSEK 61,548)
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 2025-05-28 20:15 CEST.
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.
