Significant events during the quarter

▐       Zwipe announced that one of the world's top digital music streaming service providers is currently testing Zwipe's biometric access cards. This evaluation is part of a potential deployment of Zwipe's technology across the company.

▐       A leading U.S.-based social media and IT company is currently testing Zwipe Access biometric cards via their strategic technology partner, mandated to assess and implement technology globally, considering the possible deployment of this cutting-edge solution across its facilities.

Significant events after the quarter

▐       As part of the official launch of LEGIC neon on card Zwipe and LEGIC Identsystems are excited to announce the introduction of biometric cardholder verification on Zwipe Access for LEGIC-based access control systems. This enhancement, now available commercially, integrates Zwipe's industry-leading biometric technology into the latest version of LEGIC's neon application.

▐       One of the prominent global leaders in the pharmaceutical industry is currently testing Zwipe Access biometric cards, in collaboration with a trusted partner, with a view to potentially deploy these innovative cards in its operations.

Message from the CEO

During the quarter, we have shifted focus from mainly expanding our network of partners to targeting potential end user enterprises with our partners in order to generate new PoCs, Pilots and orders, for start using our biometric access cards in daily operation.

We have several tests ongoing and as communicated, with employees in a number of well-known major enterprises, all of them leaders in their respective sector. The employees have started to use our biometric access cards on a daily basis in order to evaluate a possible deployment across their company's and facilities.

We feel confident that a number of the engagements and opportunities our partners are working with us on will result in commercial and operational deployments in a very short timeframe.

Also mentioned in the first half report, we have during the third quarter, also mentioned in the first half report, communicated a number of new partner agreements .

AXYS, a specialist in integrating access control, video surveillance, intrusion detection, and other security technology solutions-Our collaboration aims to deliver our biometric smartcard technology solution to their global customer base.

ABC Security Access Systems, a prominent Canadian integrator specializing in physical security solutions focusing on key sectors such as retail, government, commercial and institutional.

ZKTeco is a globally recognized leader in access control solutions and together we aim to deliver cutting-edge, high-security access solutions in Europe.

All existing and lately added partners are generating a growing funnel of opportunities in the selected countries and verticals we are focusing on. Our focus now is purely on converting these opportunities to commercial and daily operational using of our biometric access cards.

As communicated today, in a separate press release, Zwipe's board decided to initiate a rights issue of NOK 40 million. In order to extend our runway with the capital to be raised, we have further reduced our personnel costs and we project our operating expenses to come down to approximately 2.6 mNOK per month going forward.

Financial review

Zwipe reported total revenue of 0.4 mNOK during Q3 2024 mostly related to the access products and services, versus revenue of 1.8 mNOK in Q3 2023 related to payment products and services.

Cash flow from operations after changes in working capital was -14.8 mNOK versus -27.2 mNOK in Q3 2023, which is driven by the significantly lower operating expenses during 2024 compared to Q3 2023.

Cash and cash equivalents stood at 10.5 mNOK at the end of Q3 2024 compared to 48.3 mNOK at the end of Q3 2023, and 42.2 mNOK at the end of 2023.