Important key information and figures:
• World premier exhibition of next-gen microLED ECHO proof-of-concept at Display Week, May 2023
• Patent for the ECHO directional OLED display technology will be issued next week
• Notice of allowance received for a multi-view version of the ECHO directional LCD display technology
• 55% decrease in total revenue in Q2-2023 compared to Q2-2022
• 53% decrease in gross profit in Q2-2023 compared to Q2-2022
• 6% increase (3.4 points) in gross profit margin in Q2-2023 compared to Q2-2022
• Solvency ratio of 77.5% at 30 June 2023 compared to 79.9% at 31 December 2022

During and after the period, Realfiction has experienced the following development in its business:

Project ECHO: We now have confirmation from the US Patent Office that two of our ECHO patent applications will result in issuance of patents. One patent relates to the 3D OLED version of ECHO, while the second one relates to a multi-view 2D LCD version. While the 2D multi-view solution is not at the core of our grand vision for ECHO, it is a great example of how we are constantly working to broaden the market potential for our directional pixel technology to create maximum shareholder value over time. We have also signed an exclusive license agreement with our technology partner Hong Kong University of Science and Technology for lifetime use of their patented and superfast ferroelectric liquid crystal (FLC) technology. This is excellent news and a way of future-proofing ECHO, as we now have a clear path for commercializing ECHO with the three major display technologies: LCD, OLED and microLED.

Sales activities: In the second quarter, revenue from our MaaS for Exhibition and Hardware sales segments was significantly lower than for the same period last year. The main reason for this is that in Q1 and Q2 of 2023, we focused most of our resources to meet ECHO-related milestones, including presentations of the technology to potential commercial partners and participation at Display Week in May. After the end of the quarter, we are seeing a rebound after the summer holiday season, with preliminary figures for July and August above budget and above the first two months of Q3-2022.

CEO Clas Dyrholm comments: “While we continue strengthening the protection of our IP, we continue discussions with relevant parties with the aim of entering into licensing and/or development agreements. We also look forward to showcasing our ECHO 17-inch full-HD 3D display to a broader audience at the world’s most important technology event: the Consumer Electronics Show (CES) in Las Vegas in January 2024. This will be a great opportunity to showcase ECHO to more potential commercial partners, the media and technology influencers in several relevant segments such as televisions, computer monitors and the car industry, so that we can continue building awareness on the groundbreaking capabilities that we bring to the 3D display space. “

We highlight the following key figures from the Q2 Interim Report:

Q2 2023 (1 April – 30 June 2023)
• Revenue: TSEK 1,643 (Q2-2023: TSEK 3,961)
• Gross profit: TSEK 1,053 (Q2-2023: TSEK 2,242)
• Gross profit margin: 64.1% (Q2-2023: 60.7%)
• Result after financial items: TSEK -2,935 (Q2-2023: TSEK -547)
• Earnings per share: SEK -0.15 (Q2-2023: 0.01)
• Cash flow from operating activities: TSEK -1,964 (Q2-2023: TSEK -79)
• Equity: TSEK 72,844 (Q2-2023: TSEK 73,993)

H1 2023 (1 January – 30 June 2023)
• Revenue: TSEK 4,592 (H1-2022: TSEK 6,929)
• Gross profit: TSEK 2,940 (H1-2022: TSEK 4,336)
• Gross profit margin: 64.0% (H1-2022: 62.6%)
• Result after financial items: TSEK -4,283 (H1-2022: TSEK -667)
• Earnings per share: SEK -0.22 (H1-2022: 0.04)
• Cash flow from operating activities: TSEK -5,246 (H1-2022: TSEK -1,010)
• Equity: TSEK 72,844 (Q2-2023: TSEK 73,993)