XTPL achieves PLN 6.7 m in commercial sales after Q1-Q3 2024 and plans to launch a new business line in 2025

Press release

Wroclaw, October 17, 2024

XTPL achieves PLN 6.7 m in commercial sales after Q1-Q3 2024
and plans to launch a new business line in 2025

According to preliminary estimated data, after three quarters of 2024 XTPL generated PLN 6.7 million in revenues from the sale of products and services compared to PLN 9.2 million achieved in the same period last year. In the Q3 alone the revenue figure was PLN 1.1 million, mainly driven by the delivery of the Delta Printing System (DPS) prototyping device to a client. At the same time, over the last 30 days, the Company received four more orders for DPS devices, one of which has already been delivered to the client and, together with other completed orders, will have a positive impact on Q4 revenues. Three of the four contracted devices were ordered by industrial buyers from the North American market. As part of the adopted Strategy aimed at achieving PLN 100 million in commercial sales by the end of 2026, XTPL continues its R&D efforts and prepares to launch the fourth business line in 2025, which will contribute to the strategic goal for 2026. The new product will fill the identified market niche between DPS devices and industrial modules and will be intended for HMLV (High Mix Low Volume) production. The product is being developed based on confirmed interest from existing and potential XTPL clients, with the first prototypes to be delivered in 2025.

“Our quarterly results are still largely dependent on the flow of orders and deliveries of DPS devices in the period, but this is going to change once we go ahead with industrial implementation with the first partner – and quarter over quarter we are moving closer to this goal. Currently, four devices containing the XTPL industrial module are being tested around the world by global manufacturers of advanced electronics from key destinations: South Korea, China, USA and Taiwan. We also entered Q4 with a strengthened pipeline of three DPS devices ordered at the end of September, and in recent days we have reported another sale. It’s worth noting that three of those clients are industrial entities from North America, where we will soon officially open our Demo Center in Boston. We expect to see several more orders by the end of the year, which will significantly boost our revenues in this period and at the same time will build our backlog for devices whose delivery date will be shifted to early 2025” says Filip Granek, CEO of XTPL S.A.

“Next year, we are planning to launch another business line based on a new market segment that we have identified in cooperation with partners during the commercialization of over 30 DPS devices already delivered. This will be of great significance in the context of our long-term vision. We see a need to provide the market with a device for HMLV production for electronics manufacturers and technology corporations. This will differ from DPS, as the device will be characterized by a higher level of work automation and will be intended for professional applications. We have been working on the product for several months now, in close dialogue with clients interested in this solution. We’re looking to deliver the first prototypes to the market as early as 2025, and considering the significantly higher unit price and margin compared to the DPS, as well as the nature of the device, suited to work in larger volumes, the commercialization of this line may significantly help the attainment of our strategic goal of PLN 100 million in the sales of products and services by the end of 2026 and enable further sales growth in the following years” Filip Granek adds.

In addition to the sales of products and services, XTPL generates additional revenues from grants, which contribute to the financing of part of its R&D projects. In the three quarters of 2024, the Company obtained grants of PLN 1.1 million compared to PLN 1.7 million in the same period last year. In the third quarter of 2024 alone, the value of grants was PLN 0.7 million versus PLN 0.3 million in the year-ago period. In accordance with the policy on accounting for grants, only a part of the proceeds will be recognized in the income statement for Q3 2024, while the remainder will be kept on the balance sheet as deferred income. The company’s cash position as at September 30, 2024 was PLN 4.7 million.

“We are currently finalizing the first, very intensive stage of implementing our investment process aimed at scaling up the XTPL business in order to significantly increase commercial sales 10 times to PLN 100 million in 2026. In recent quarters, we’ve applied significant funds in support of our key development areas: sales, production capacity and R&D. As a result, we have strongly increased the volume of devices that we can deliver to the market, which prepares us well for the moment of the first industrial implementation. However, there were many more major changes within the organization, and some funds had to be invested in securing key components for production, which will be reflected in a further increase in our inventory level reported at the time of publication of official results. The inventory of PLN 4.7 million at the end of June reflected the potential sales of PLN 10 million, and in Q3 this value will increase even more, which will soon positively strengthen our cash flow” says Jacek Olszański, CFO of XTPL.

“We sustain our strategic goals and plans to move to the next stage of the investment process, which will require securing additional funds. We will soon decide on the form and the method of raising those funds” Jacek Olszański adds.

XTPL’s business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoinks). The company has nine projects aimed at industrial implementation of its technology, which are at least in the second stage of that process. Most advanced are four projects covering areas the Company considers strategic: semiconductors and displays. The total potential of those nine industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues. The Company’s end customers are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world’s largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.

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XTPL S.A. is a deep-tech company providing ground-breaking precision printing solutions for the global electronics market. The company develops and commercializes products and solutions relying on its globally innovative, Ultra-Precise Dispensing (UPD) platform technology protected by international patent applications. The technology enables ultra-precise deposition of conductive features with a resolution of 1 to 50 μm. The XTPL solution combines ultra-high resolution of printed structures and conductive materials with a very high concentration of metallic nanoparticles and high viscosity. This combination makes the solution unique on a global scale. The Company-designed innovative additive method can be used in the rapidly growing printed electrics sector, notably in areas such as semiconductors, displays, biosensors, advanced integrated circuits or security printing. The XTPL technology can be used for electronic interconnections in advanced integrated circuits, 3D printed electronics, hybrid flexible electronics or IoT, among other areas.

XTPL’s goal is to license its technological solutions created for industrial implementation in dedicated application fields. The Company may also achieve this goal by sales through distributors or strategic partnerships – in this way the cooperation can be geared to the needs of the future counterparty. Since 2019, XTPL S.A. has been listed on the main market of the Warsaw Stock Exchange, and since 2020 on the Open Market in Frankfurt. To find out more, go to www.xtpl.com

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