Realfiction Holding AB announces its Q1 Interim Report for January – March 2024
Realfiction Holding AB (“Realfiction” or the “Company”) announces that the Q1 Interim Report for January – March 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 [email protected]. Below is a brief summary of the Q1 Interim Report.
Important key information and figures:
• License discussions are progressing according to plan and a positive outcome could happen in Q3-2024
• Lower cash outflows and loan of MSEK 20 support financial runway into 2025
• 42% decrease in total revenue Q1-2024 compared to Q1-2023
• 43% decrease in gross profit in Q1-2024 compared to Q1-2023
• 2% decrease (1.1 points) in gross profit margin in Q1-2024 compared to Q1-2023
• Solvency ratio of 59.9% at 31 March 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”): Our CES 2024 meetings, along with other meetings and demonstrations in 2023 and 2024, have initiated several ongoing discussions under NDA. These discussions involve further evaluation of both the technical and commercial aspects of our DPT platform. Some discussions have advanced to a final stage, and there is a chance that we conclude our first commercial agreement in Q3-2024. However, all negotiations carry the risk of non-acceptance from either party and potential delays. We have shifted our focus to the commercialization phase, which is reflected in the reduction of our cash outflows from operations and investments by TSEK 1,891 to TSEK 5,381 in Q1-2024 from TSEK 7,272 in Q1-2023. This lower level of cash outflows allows all our business operations, including the execution of our DPT go-to-market strategy, to be financed into 2025 with the funding from the loan we received in February 2024. In summary, we are making progress in line with the plans communicated in previous reports and press releases.
Mixed Reality displays: As in Q4-2023, we are reporting lower revenue from sales related to our mixed reality display products in Q1-2024 compared to the same period last year, but revenue is in line with our budget. It is pleasing to see that income from our mixed reality displays support the commercialization of our DPT platform.
CEO Clas Dyrholm comments: “The whole team is committed to bringing DPT-enabled display products closer to the market, and thus in front of viewers and users around the world. We continue to move full steam ahead towards signing license agreements for DPT in 2024, and with a chance to sign off on a first agreement in Q3-2024, we look forward to concluding our first commercial agreement and enabling our technology with our commercial partners.“
We highlight the following key figures from the Q1 Interim Report:
• Revenue: TSEK 1,703 (Q1-2023: TSEK 2,949)
• Gross profit: TSEK 1,072 (Q1-2023: TSEK 1,887)
• Gross profit margin: 62.9% (Q1-2023: 64.0%)
• Result after financial items: TSEK -8,123 (Q1-2023: TSEK -1,348)
• Earnings per share: SEK -0.41 (Q1-2023: -0.07)
• Cash flow from operating activities: TSEK -5,381 (Q1-2023: TSEK -3,282)
• Equity: TSEK 61,548 (Q1-2023: TSEK 73,108)
