Good morning, and welcome to IDEX second quarter presentation for 2026. My name is Anders Storbråten, and I am the Executive Chairman of IDEX.

For those of you who have been following us for quite some time, you will now see on the slide deck that this is our new brand identity, and we are identifying ourselves as a human. We'll come back to that, what that means later on in the presentation.

Let's go. Yes, there is also on the website there is a new film that is describing what we are doing at IDEX at the moment, and I encourage you all to spend one minute to review that one.

There's also a link to the video in the presentation. Let's dive into the highlights for Q2.

Q2 was very active in IDEX. We tripled our active pilots from Q1.

We have estimate around $20 million of revenues from that portfolio of pilots. We had 4 POs in Q2, both in Access and Pay.

Our channel partner network is really growing and are being activated. It's now standing at 25 versus 9 in Q1, and this is really helping us to build global presence with the best distributors available.

One example is Infinigate, which was initially a Nordic agreement, has now been lifted up to cover all of Europe. On the certification side, we are now certified by FIDO Level 2.

That means broadening our reach to high-security customers, but also when we combine that with our certified Visa biometric card, we are the first in the world to have a certified Visa FIDO2 card. We're also on the product development side, we have two products in product process.

One is preparing for the post-quantum world, and also making our card work seamlessly with the mobile. When we look at the highlights on the financial side: the backlog is up to 23.7, and it's all committed for 2026.

Revenue was $1.6 million in the quarter, and gross margin is 19%. There's two things to say on the gross margin: new POs has substantially higher gross margin, but also we are delivering from our inventory, the cash effect is close to 1:1.

OPEX pretty much stable at around 20, and our cash position is at 28.5. We have no interest-bearing debt as we cleaned out the convertible in the previous quarter.

We do expect in the second half to have both strong growth in POs and revenues. We have already booked $4.5 million for Q3, and we have committed 8.5.

That is before any conversion of pilots and new business, which we think are meaningful in both Q3 and Q4. We feel very good about our second half of the year.

This marks a big shift for IDEX, which is now delivering revenues and cash flow. As we can see from the table here, where were we in May?

We were at 7 pilots, now at 23. We had one pilot converted, which was an Indian bank.

That is an area to follow. No pilots have been discontinued, and we have more pilots in the near term.

We do estimate this to be around $20 million of potential POs. This is before our partners are taking our product to their customers.

We're actively out right now working with the partners, coming back to that. What our customers are looking for is to eliminate phishing risk and consolidate physical and digital access, which is a very important driver at the moment with the cybersecurity issues that we are facing.

Getting a little bit into the details on the channel partners: we are now at 25, up 16. This really means that we can leverage our product.

We are very good operationally geared and working well with partners, the best partners that we can find. We get proper scale.

Infinigate, as I mentioned, is now a pan-EMEA agreement in place. AdvanIDe is the world's largest NXP reseller, and we're working actively with that partnership across several geographies.

Soterra, a new one, which is the platform for personalizational access cards, and they are working and deliver their products to the leading physical access security companies. HID, NXP, we are working very well with that ecosystem, and will be a very interesting second half of the year.

Little bit about where we are on the product development and what the principles are: we are working along two really important vectors. One is we need a product that can work well in the post-quantum world, industry-leading security levels we will have and are having today.

We're also focusing on how can we reduce friction and improve user-friendliness. We have improved enrollment significantly, and IDEX Mobile will make it a seamless experience to use our products with the mobile.

This is just demonstrate what we're doing on the quantum side. This is what enrollment looks like at scale, very easy to enroll for corporations and banks, etc., their IDEX portfolio.

Here, how can we make sure that everybody is carrying a mobile and they can use our card together with it. The financial highlights: our backlog is up to 23.7.

This is strong development in the period, and we see also acceleration of POs in Q3 and Q4. This backlog, again, is fully committed for the second half of 2026.

Because we are delivering it from our inventory, it carries almost 100% gross margin. Q2 revenues came in at 1.6, which is a little bit up from last year.

What's really to bear in mind here is where we are now in Q3 already: we have $8.5 million committed and already $4.5 million shipped. The gross margin is expected to improve significantly as we are rolling out our access control with full commercial pricing.

Cost: no meaningful changes. We are managing to scale the commercial activities without increasing costs.

Cash position: we ended the period with $28.5 million in cash. The capital raise we did earlier this year enabled us to clean out the balance sheet.

We had an EBITDA negative of 20 in Q2. When we're looking at the backlog of 23.7 for the remainder of the year, which is more or less 100% cash conversion, and the pilots, and also meaningful POs that does not require pilots, we feel very comfortable about the financial stability of IDEX.

Outlook: this is what is the most pressing issue out there at the moment. We actually no longer know who's on the other side, a bot or a human, when a transaction or authentication takes place.

IDEX, you all think about it as a sensor biometric company, but we are in the business of not delivering that, we are in the business of verifying human identity in both physical and digital world. We're doing that much better than anyone else.

This is how the automated systems that you see today identify, or try to identify, whether it's a human on the other side: there are puzzles, questions, math, and this takes time. There's no way that these puzzles can actually guarantee that there was a human there, but more importantly whether it was the right human.

Even Perplexity need some help to verify whether you are a human, which is quite interesting. If you ask AI about what actually protect against identity theft, this are the results: it needs to be multifactor, it needs to be phishing resistant, it needs public-key cryptographic, it needs to be hardware-bound on-device biometrics.

Nobody scores better on that than IDEX. The macro backdrop: four drivers just moved from forecast to deadline.

In Q1, we focused on the 7th of April Mitre's announcement that gave us 6 to 18 months. Warnings become live incidents in months.

7th of July, the ECB gave the banks four-month window to have a plan in place. On the 18th of August, close to us, Novo Nordisk was hacked, or it was the results of the hack that they had captured 1.3 TB of data, showing that the attacks are real and the world needs systems that make sure that not only that you protect the outside, but once the hackers are on the inside, you have systems that kind of stops them once they're on the inside.

I think that is something everybody needs to be aware of, that you should assume that you are hacked and you have hackers inside your systems. They're not asking you for ransomware, but they are monitoring data and they're positioning themselves for bigger economic gain or other threats down the road.

What you need is systems that are protecting you and because they cannot move around once they're on the inside. Compliance is another big macro backdrop: NIS2 and DORA, there is no guidance anymore, they are actively out there with fines, and the entire ecosystem is affected.

This becomes now a leadership responsibility and not the IT departments'. When we look at solutions out there, there are, as I showed you, it's hard to verify a human, at least what we're seeing from the market.

Visa acquired BioCatch two weeks ago. That is to try to close or get closer to a solution, but again, this is machine against the machines, and it's not a permanent solution.

Finally, quantum computers, we called it synthetic quantum, is that large data is already harvested, the large datasets. They might not be able to hack them today, but they will able to decrypt them at a later stage.

What's important here and the NSMs out there is that you need to start implementing this now. Where are we on the pilots and to orders?

Far, we have had pilots that are now coming into orders, and then products will ship and revenue recognized. That will be in the second half.

The first part was the first part of the year. What we are also seeing now is that because we have proven that our product works, customers are skipping pilots and they go straight to shipment and delivery.

What to watch from here: a significant step-up in both order intake and revenues, conversion of pilots. We estimate the current pilot portfolio to be around $20 million in combined POs.

Q3 revenues is already standing at $8.5 million committed, $4.5 million shipped. The rest of the backlog is set for delivery in the second half.

This exclude new orders. There might be some cost increases in Q3, but we are closely monitoring our expenses.

New pilots will be launching. We will see significant scale from our channel partners.

A channel partner for us is not something we put in the drawer once it's signed. We are actively out with them in the market, visiting the customers, doing them the demos, giving them all the materials.

We are really partners in that. Finally, I would say something on IDEX Pay.

IDEX Pay was something we were putting on the backlog. This is really coming back into full force with the first PO in India.

There are more to come, but also banks in other markets are now both in the U.S. and in Europe is now seriously considering IDEX.

That's it for today. Any questions?

Thank you, everybody, for attending. Again, I encourage you all to visit our website now to see the latest film and how we position IDEX: identify yourself as a human.

Thank you very much.