XTPL has a strong start into 2020

(summary of the Report and significant events in Q1 2020)

  • Signing another XTPL technology evaluation agreement – cooperation started with the Chinese Suzhou Cowin Laser Technology Co. Ltd
  • Delivery of the first commercial orders – sale of nanoink based on sliver nanoparticles
  • Continued expansion of the international patent cloud of XTPL solutions
  • An increase in revenues in the first months of 2020
  • Company development during the coronavirus pandemic

After 2019, which was a very busy year for XTPL, the past quarter was a period of active development activities. It also saw the first commercial transactions. The recent months have been marked by intense efforts bringing us closer to a commercial entry into the advanced electronics market – says Filip Granek, CEO of XTPL.

ANOTHER TECHNOLOGY EVALUATION AGREEMENT SIGNED WITH A GLOBAL DEEP-TECH LEADER

In late February 2020, XTPL S.A. and Suzhou Cowin Laser Technology Co Ltd based in China signed a Technology Evaluation Agreement (TEA). Cowin is another company that is exploring the possibilities of implementing XTPL solutions on its production lines. This firm is looking for a technology for repairing defects in new generation displays. Currently, further advanced work is underway on technology evaluation and so are talks regarding the transition to the next stages of commercialization of XTPL’s open defect repair technology.

THE FIRST COMMERCIAL ORDERS

In recent years, the Company has developed a unique formulation of conductive ink with a view to achieving the best printing parameters using the UPD technology. In March this year, XTPL nanoinks based on silver nanoparticles attracted interest from manufacturers from several industry sectors, and the company carried out its first commercial orders. Two deliveries were made for partners operating in the first application field commercialized by XTPL, namely the display sector. The third order was delivered for a company from the EMEA region operating in the display industry and in several other advanced electronics sectors. In connection with the commenced nanoink sales, XTPL expects to receive orders from new clients.

EXTENSION OF THE PATENT CLOUD

In the first quarter of 2020, the Company filed three more patent applications with the United States Patent and Trademark Office, covering further layers of intellectual property protection in the field of precise printing. The first two patent applications relate to the method and apparatus for characterizing and optimizing ink flow in the printing head nozzle. This method is generic and can be applied not only to the XTPL technology, but also to other printing techniques. Therefore, both patent applications have a major commercial value. The third patent application is a crucial invention from the point of view of applying the XTPL technology in the smart glass sector. It shows how to significantly improve the parameters of transparent conductors. In total, XTPL has submitted 15 patent applications so far.

INCREASE IN REVENUE THANKS TO HIGHER REVENUE FROM GRANTS AND DELIVERY OF THE FIRST COMMERCIAL ORDERS

In the first quarter of 2020, XTPL S.A. posted consolidated revenue of PLN 932 thousand (including PLN 893 thousand from grants, PLN 20 thousand from research and development services and PLN 19 thousand from the sale of products) compared to PLN 215 thousand recorded in the first quarter of 2019 (all from grants). The consolidated net loss was PLN 3.45 million vs. PLN 3.34 million reported in the first quarter of 2019.

The net loss for the first quarter of 2020 adjusted for the valuation of the incentive scheme (non-cash cost) amounted to PLN 1.48 million compared to PLN 3.34 million in the first quarter of 2019.

DEVELOPMENT DURING THE PANDEMIC

The third quarter of 2020 was a very fruitful period for the Company. Despite the coronavirus pandemic, the R&D team and the operational team are going strong with business development. Technological work is continued at the Company’s headquarters while maintaining all the standards announced by state institutions. Some technology staff are involved in the development of new grant and patent applications, and therefore also partly work from home. All contacts and business meetings with partners are held in the form of teleconferences. The planned actions (e.g. shipping the ink to buyers, and preparation and dispatch of samples under the technology evaluation agreements) are continued and are on track. At the same time, the technology and business departments are working intensely on acquiring new clients.

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