XTPL enters further stages of cooperation with strong partners
- Cooperation with HPK – one of the main suppliers for LG Display – to implement the nanoprinting technology in the Korean partner’s devices for defect repair in displays
- Technology evaluation for BOE; the project is designed to develop a solution for the new generation of large-format OLEDs
- Completing a private placement of shares for more than PLN 10 million
- Another three international patent applications submitted in Q3 2019
CONSISTENTLY FORWARD IN COMMERCIALIZATION
During the first nine months of this year, XTPL focused on moving forward to further stages of its complex commercialization process. The company’s activities in this area led to, inter alia, execution of two important agreements in the period immediately preceding the publication of the Q3 2019 financial report. These are: the Memorandum of Understanding (MoU) with the Korean HPK, whose representatives made a reference visit to the XTPL Wrocław headquarters last week, and the Technology Evaluation Agreement signed with the Chinese BOE. Both projects relate to the display industry, but each to a different area.
– Right from the start, our vision was to address our solution to market leaders. The agreements signed with the Asian partners mark the next stages on the road towards this goal. HPK is one of the major players in terms of manufacturing e.g. devices for defect repair, and at the same time it is one of the main suppliers of these devices for LG Display. In turn, BOE is currently the world’s leading display producer . With those agreements signed, we not only enter another, higher level of business relations with these partners, but above all we take a step forward bringing XTPL closer to the signing of commercial contracts – says Filip Granek, the CEO of XTPL.
XTPL and HPK are interested in signing a license agreement. This type of commercialization model best protects the interests of the Polish firm, ensures optimized use of its potential to create new technological solutions and facilitates faster entry on the market. In case of the Chinese partner, the purpose of the current cooperation stage is to validate the parameters of the XTPL technology. Quite importantly, BOE has declared that if the project is successful, they will be interested in starting negotiations on the main business arrangements of a commercial cooperation.
– With regards to the type of the solution offered by our company, HPK is looking for an efficient technology for repairing open defects in displays, which they intend to implement in the devices they produce. In turn, with BOE we are doing a project aimed at evaluating the solution addressing a new class of challenges occurring in production of the new generation of displays such as OLEDs and QLEDs – Filip Granek explains.
In addition to its activities dedicated to the display sector, the company is also carrying out an advanced proof of concept project with an American manufacturer, a leader in the smart glass industry. The project is expected to bring a significant improvement in the performance of the partner’s products and potentially open for him new market segments. At the same time, the current stage of cooperation may lead the firm to enter into a commercial contract in the coming year.
RESULTS IMPACTED BY THE INCENTIVE PROGRAM
The company’s revenues for three quarters of 2019 were PLN 1.6 million and came from grants. The company expects to receive another PLN 2 million in grants in the coming months. Net result reported in Q3 was a loss of PLN 18.5 million. It was mainly influenced by the cost of the share-based incentive scheme (PLN 11.6 million). Excluding this one-off, the company’s net result amounted to PLN – 6.9 million. In Q3 2019, operating costs were in line with the previous financial assumptions.
PATENT CLOUD DEVELOPMENT AND TECHNOLOGICAL BREAKTHROUGHS
For deep tech companies like XTPL, intellectual property is a product and a competitive advantage, and the size of the patent cloud has an impact on their value. At present, the company has 10 patent applications, but declares that its patent cloud will increase to 35 secured applications by the end of 2020. From the point of view of a future license, the most important applications which XTPL has already submitted are related to open defect repair solutions. This is quite important as a high level of intellectual property protection will guarantee safe commercialization and appropriate negotiating position for the company before the first contracts are signed with selected partners.
– There are ample technological achievements that we will be looking to secure. Almost every week, the XTPL team breaks further barriers by developing our unique method and adapting it to the requirements of specific application field, or specific clients for that matter. A further development of the company’s technology to meet the requirements of not only the current but also future generation of devices will improve our negotiating position and will contribute to the increase in the value of a potential license agreement – Filip Granek sums up.
 In terms of total surface area of globally manufactured displays, source: IHS Markit