Good morning, good evening, good day wherever you are. Welcome to the quarterly 1 presentation from NEXT Biometrics.

You can swap to the next slide. I'm Ulf Ritsvall.

You can take the next slide. Ulf Ritsvall, CEO of the company.

I'm here together with Eirik Underthun, CFO, to present the earnings call. You can take the next slide, please.

The agenda for today: we will go through the Q1 highlights, we will go through the Q1 financials, and we will take you through business and market updates, and we will round off with a Q&A session. You can ask questions in the Teams window, or you can send an email.

We have already received a few questions that we will answer during the call. Yes, let's take the next slide.

The Q1 highlights: we came in very, very much lower than expected in revenues in quarter 1. It was 40% down in compared to Q1 in 2025.

We are suffering from a very slow market. As you have seen, the market size and market window from governmental is very, very slow.

We, at the same time, have a global geopolitical turbulence in the world, which is not helping the governmental tenders to actually come through. We are operating in this tender-based business mainly.

Our now days 89 design wins, the majority of them are now integrated hardware and software into a hardware design. It's ready and it's tested, and it's approved by the customer, and majority is now actually waiting for deployment on the market.

It's a slow system because the order needs to go from the governmental tender into the OEM, to the ODM, and to NEXT Biometrics for us. This is taking far longer time than we have anticipated and we have seen previously.

I'll get back to that a bit more with the measures we are taking. During the quarter 1, we also received a very much needed FBI certification of our newly developed FAP30 sensor, our NEXT Granite sensor.

This is very important for to be compliant to the different markets. It's a quality statement that we are very proud of being achieved.

Also during Q1, we had some major breakthrough and communication in our anywhere-on-display IP development. We have key technical milestones achieved during the quarter.

We have two patents now. We announced one additionally during Q1.

If you remember in January, we announced that we have selected Truly as a partner for this strategic collaboration, and for the demonstration unit to be shown. We will move over to the next slide, and Eirik will present this.

I hand over to Eirik. Next slide, please.

Thank you, Ulf. Just wanted to [unclear] everyone is aware that we have an ongoing 50 million rights issue.

You can see our stock exchange [notice?] providing the details on that.

Right now sent out letters [to holders?] in the post, you should have received this letter by now.

In those letters, we communicated that the rights have now been allocated to the shareholders. These rights are currently trading in the [market?]

. That's going to be going [until?]

the 3rd of June 16:00 end of trading that day. Then of those subscription rights will end.

There is no more trading after that. And [the period?]

for the rights issue has already commenced. It's commenced 3 days ago on 26th of May, and [ending on?]

9 June '26 at 16:30, end of business that day. Available at arctic.com/offerings.

To read the prospectus and to understand the rights offering. Please be informed that these [dates?]

you can see on this slide if you would like to participate in the rights offering. [Next slide?]

, please. I will now run you through the Q1 financials.

The revenues were 1.8 million compared to 3 million in the restated Q1 2025. Revenues were impacted by slow sales in India.

The adjusted gross [margin was?] 30% for Q1 2026, [compared to?]

55% in [Q1?] 2025.

The [lower?] margin is due to product mix.

On operating expenses, we ended up with adjusted expenses of 16.5 million [compared?] to NOK 17.5 million in the restated Q1 2025.

The adjusted EBITDA was negative 15.3 million compared to negative 15.8 million in Q1 2025. And [we?]

ended the quarter with a cash [position of 20.7 million?] Norwegian kroner, compared to 8.3 million at [year-end?]

2025. The operational cash flow was negative due to lower revenues, and we had [proceeds?]

from financing, which was related to the shareholder [loan?] , we received the first tranche of the bridge loan.

The summary of this quarter is that there were slow sales in India, which impacted the revenues. The company had non-cash [write-down?]

of NOK 9.9 million in net inventory write-downs, 4.7 million in non-cash costs. The non-cash are related to the, first of all, redundancy cost for [staff?]

that were laid off, as well as shareholder remuneration cost, and also non-cash investigation and litigation cost related to the ongoing dispute in China. With this, I will turn over the call to Ulf.

Thank you. You can take the next slide, actually even one more slide.

Going into the business and market update, I would like to start with what we are doing in this company. We are now in the transition period of actually transforming the company from sensor sales, which we see is very slow and we need to take measures—I will take that in the next slide—on doing this.

We are now actually creating a intellectual property company. You can compare this to how, for example, it's a large company called Arm doing similar type of IP licensing.

We're creating this anywhere on the display, which has the potential to transform the biometric and display markets to where we are now positioning NEXT to be in the forefront of the next generation of smartphone security. We are few steps ahead on this journey.

This journey is a few steps more, but we have now two newly granted US patents, which is very, very important for us. It secures the core IP of this transition.

It creates a defensible competitive barriers and a strong foundation for NEXT Biometrics to actually capitalize on this. One year ago, we sent out a press release about a smartphone market industry leader that confirms the technology and commercialization and the commercial potential of this intellectual property and the use case itself.

In Q1, we had a strategic manufacturing partnership announced, which is Truly and it's a leading display manufacturers, which is de-risking the development as they are developing this hand in hand with us. We are taking a prototype to demonstrate on the Mobile World Congress.

We are having this milestone as demonstrating for key market leaders in display manufacturing, but also smartphone makers in this area. This is the type of premium positioning we now are taking.

The technology is of course purpose-built for the premium smartphone at the end, but of course it has the capability of actually exploding into the complete smartphone segments, including, for example, where we are based today in the Aadhaar market, where you, instead of walking to a bank, for example, and have external biometric reader to get an bank account, you can now actually use the cell phone and the display of actually confirming your Aadhaar identity at home. It will ease up many of different applications.

This specific use case, of course, long-term, but in the near future, this IP technology will be able to convert into upfront licensing fees for the different licensees. We are developing, it's on track, and it's on schedule as we have it today.

This is the current roadmap of this innovation. If that would be one reason for the investment and the prospectus that we have out right now, this is the reason because this is the next way of NEXT.

We can take the next slide. Short term, of course, we are in a difficult situation, as you can read in our financial data.

We are right now actively converting the existing inventory across all majority markets: India, Bangladesh, Americas, but also China, Japan, and so on. We are seeing where the stock and the inventory suits best at this moment.

We are actively pursuing this at this moment. This will of course give us, with this revenue, it will give us a longer runway compared to currently communicated.

As you have seen, we have an annual underlying OPEX trending at 65 million NOK. This has to go down further, as you see on the figures.

We need to take large measures. We have already taken measures internally to protect the cash runway for this.

It's a combination of revenue focus as well as seeing where to cut costs in the company to survive until IP licensing money comes into the company and we are self-sustainable. Again, focus is of course revenue focus, cost reduction.

We will announce whenever needed, maybe very soon on the costing structure, but we will also at the same time focus on the transformative technology, the anywhere on display, to deliver substantial revenue and profit to NEXT. Again, we have a very good IP position.

We have patents in the US. They are now being deployed in other parts of the world.

Again, this is a validation already done by key leading smartphone leaders. The prototype is on track, which will help us get into a profitability.

It's a major commercial catalyst of NEXT Biometrics. I think I'll stay there and open up for Q&A.

I think we have received a few questions already. Maybe, Eirik, if you can read them out, we can try to answer them.

There is one question [regarding the?] anywhere on display.

The question is: what's the potential value of the anywhere of display technology? I'm not sure [how to answer?]

that, but... The business

the proposed business model is that we will engage multiple different display manufacturers. They will license the intellectual property from NEXT Biometrics.

Once they have completed the display integration, NEXT Biometrics will get receive unit charge, I mean license one sorry, unit fee from each sold sensor in the display. The high-end smartphone market is 300 million phones, 200 of them are Apple, 100 million are Android phones.

If you have a comparable figure for a competitive type of license or royalty, you can say that it's between $1 and $3 per sold unit, then you can calculate the value of the actual of the actual implementation, which is massive. Right now, we are building the prototype, demonstrating it, and we will by the time we have the prototype, we will be able to get these different licensees.

Any more questions?

There was one question here regarding that earlier we had a revenue outlook of 70 million kroner NOK for '26. Is this guidance still valid?

I would say that the focus is to sell the inventory. If it's actively 70 million, it's very tough to say, as we have this very, very slow governmental market.

It's not very likely that we will reach 70 million NOK at this moment in 2026. It's very hard to say and predict where we will end up.

Again, we have 25 to 35 active customers and active design wins in the sort of end journey before the mass production. If more than a few hits in, then we could close into that.

Again, actively converting the inventory first, and then we'll see. We have one.

Could you run us through the order book and the orders that you have [unclear]?

Sorry, I didn't hear. I run through this order?

We have

announced

Yeah?

The order situation.

Okay. Yes.

According to our communication guidance on the website, we are announcing orders that are above 2.5 million Norwegian kroner. This year, it's been very few orders that has been above 2.5 million.

We have a few ACPL orders, one in December, I remember, and one or two during quarter 1. They are being delivered.

Some were delivered in Q1, and the remaining will be fulfilled in Q2. Those orders are in our book and communicated.

The smaller orders that are below 2.5 million, we are not communicating in the order size, but we do communicate orders that are of significant information value to shareholders, including one order on an Oyster3 device, which was lower than 2.5 million US dollar, Norwegian, but of significant importance since it was a new market. We do have ordering stock on secured order and delivering them as we speak during quarter 2 and quarter 3, and ongoing.

Any more questions?

No, that completes the Q&A session. Thank you.

Thank you very much. You can reach me on email or on phone.

Thank you for being here today, and look forward to seeing you very soon again. Thank you.