What are the applications of the XTPL technology?
The key feature of the XTPL technology is the possibility of its application in many branches of industry. Our goal is to revolutionize in the first place the broad sector of PRINTED ELECTRONICS. Strong development of this market is due to the growing number of new applications of printed, flexible and organic electronics in various fields.
The technological revolution here is based on enabling the production of complex and complicated devices with cheap and scalable methods. Just as today we cheaply and quickly print newspapers and books, in the future we will print displays, solar cells, biosensors and other elements.
VERIFIED APPLICATION FIELDS
PRESENTED BELOW ARE APPLICATIONS IN THE AREAS THAT ARE CURRENTLY KEY FOR THE COMPANY
Displays (at present commercialization is under way in the first sub-sector of this market: open defect repair, with more potentially to follow):
Open defect repair: micro- and nano-conductive structures are indispensable in the broadly understood printed electronics market (e.g. integrated circuits, LCDs/ OLEDs, PCBs, solar cells and many others). This sector is facing a major problem as these structures are very often damaged at the production stage. Electronic components made on the basis of such structures are extremely expensive, which is why repair of those defects is of key importance. The repair methods currently available in the market are limited, complicated and costly. XTPL offers a new breakthrough solution that allows defects in conductive paths to be repaired at low cost, with unparalleled precision and speed.
- Smart glass – the company’s solution is expected to facilitate change in glass transparency depending on the degree of external illumination. With the technology developed by the company, ultra-thin, invisible structures with excellent conductivity parameters can be precisely printed on glass. The main benefit expected after potential implementation of the XTPL technology in the production process for this sector is faster conversion of glass (from light to dark and vice versa), which will significantly improve the usability of this type of products, and may usher manufacturers from this sector into new, previously not supported market segments.
- Semiconductors (the project started in Q1 2020 relates to semiconductor components used in lighting devices) – the company is engaged in R&D work with one of the world’s leaders in this market to create ultra-precise conductive connections for semiconductor elements present in lighting devices. For many years, the lighting industry has been looking towards an increased use of light-emitting semiconductor materials that convert electrical energy into light energy. They are used in LED and OLED lighting. XTPL can have a significant role to play in this regard.
What is the core business of XTPL and how does the Company want to realize revenues?
XTPL is a deep-tech company. XTPL’s strategic goal is design, development and broad commercialization of its platform technology of ultra-precise printing of materials in the area of advanced electronics. The company seeks to adopt its technology for various application fields, and then offer the technological solution to industrial partners through various mechanisms: licensing, strategic partnerships and joint ventures. The overarching objective of XTPL’s operations is to implement nanoprinting solutions adapted to market needs in selected industry sectors.
At the present stage, when commercializing its solutions, XTPL intends to provide its clients with a comprehensive technological solution as part of a selected model:
- Licensing: XTPL develops a technological solution dedicated to a particular application field, which is licensed to a partner who on its basis builds devices that allow the technology to be used in industry; in this case, the company generates revenue from license fees based on the sale of devices in which the developed technology was implemented;
- Strategic partnership: XTPL develops a technological solution dedicated to a particular application field and commercializes it in cooperation with a strategic partner with whom an agreement (for example, a joint venture agreement) is signed; commercialization tasks are divided between the partners in accordance with their competencies and potential; in such a case, the company participates in the profit earned through the joint venture.
In what markets does the Company intend to operate?
The main directions of business development for XTPL are North American and Asian markets (mainly USA, China, Japan and South Korea). These are the areas considered most receptive to our technology. We also see great potential in Singapore, Taiwan, Germany, France, England, Switzerland, Italy, Finland, Israel, Austria and the Netherlands. We offer globally innovative solutions and we have an interdisciplinary team of professionals successfully operating in international markets.
In the first place, we commercialize areas such as displays, smart glass and semiconductors in the lighting industry. XTPL also sees enormous potential in other segments of the semiconductor market, as well as in the sectors of biosensors, security printing, advanced PCBs and photovoltaic panels.
Is the technology developed by XTPL patented, and if so in which countries?
For deep-tech companies intellectual property is a product and a competitive advantage, and the size of the patent cloud has a major impact on their value. XTPL has chosen the proactive patenting method, strategically securing its technology and striving for protection in the areas which in collaboration with experts from various fields have been assessed as having future profit potential. The company protects its IP to achieve maximum profits from development of new generation devices that will only appear in the market in the coming years. XTPL looks to the future, anticipating trends in the application fields in which it commercializes its technology. This will allow the company to build its long-term value for many years to come.
From the point of view of a future license, the most important patent applications which XTPL has submitted so far are related to the solutions for use in open defect repair dedicated to the display market and in the smart glass area. A high level of intellectual property protection will guarantee safe commercialization and appropriate negotiating position for the company before the first commercial contracts are signed with selected partners.
XTPL seeks patent protection in the largest markets and where the company’s clients are: in the USA, ASIA: KOREA, CHINA, JAPAN and in WESTERN EUROPE. As a rule, the United States and the European Union are such large and rapidly changing markets that firms normally always patent there.
Who is the statutory auditor of the Company?
The statutory auditor for XTPL is 4 AUDYT Sp. z o.o., ul. Kochanowskiego 24/1, 60-846 Poznań. The company is entered on the list of audit firms kept by the National Council of Statutory Auditors under reference number 3363. The entity belongs to the TGS Global association, which is a dynamically developing international network of independent accounting and law firms.
Does the Company meet with investors? How can you find out about planned meetings?
XTPL meets with investors regularly, both at individually scheduled sessions and at national and international conferences dedicated to the capital market. XTPL communicates with investors through publications, newsletters and social media, responding to questions asked in every available channel and via the email address email@example.com. The company wants to continue organization of investor meetings and chats for investors. All those activities are scheduled and published in the calendar of events on XTPL website.
Does the Company publish a newsletter for investors? What information does it contain? How can one subscribe to the mailing list?
XTPL publishes a newsletter for investors and each time sends to subscribers important current information on the company. The newsletter highlights important events, results, reports, the latest news and a cyclical summary of progress in commercialization. All investors can subscribe to the newsletter on the main page of the Investors Relations service, which is part of the Company’s corporate website, as well as by writing to firstname.lastname@example.org with a request to be added to the mailing list.
Why hasn’t the Company commercialized its technology yet?
Deep-tech companies like XTPL need a longer time to reach the market. They also need significant capital support at an early stage. However, deep technologies, especially platform technologies, as the one developed by XTPL, which have a wide range of applications in many industries, are even capable of creating their own markets and making a breakthrough in the existing branches of industry.
We act consistently and follow our plan, going through subsequent stages of the commercialization process. With individual partners we steadily enter next stages of progress. We have several active projects under way with large international corporations, and more than ten sales prospects in a number of application fields to be activated as part of next steps.
Large international corporations – the kind of players XTPL talks with – operate at their own, much slower pace, and we need to adapt to it. It should be remembered that the technology for which the partner is to pay a price running in millions of dollars and which is to be employed for mass production of electronics must be verified very carefully. It is worth looking a long-term view of XTPL.
What are the greatest competitive advantages of the Company?
The company’s technology has one basic advantage – its breakthrough nature, which is why it has every chance to push out the existing expensive and inefficient solutions. The uniqueness of the XTPL method is evidenced by the combination of several features:
- unprecedented precision (at the level of 1–3 micrometers);
- additive method – (saving material & time, no toxic substances);
- scalability, cost effectiveness, simplicity and speed;
- no need to use an electric field.
In addition to the revolutionary technology, the Company has other major strengths. The XTPL team consists of people from Poland and the USA – these are top-class scientists and technologists with interdisciplinary expertise in chemistry, physics, electronics, mechanics and numerical simulations (including people with PhDs), as well as specialists in strategic management and commercialization, product development, implementing innovation, marketing & communication and capital market.
The company is supported by an international advisory board, with Harold Hughes and Amir Nayyerhabibi as its first members. Harold Hughes is the former CFO of Intel and former CEO of Rambus. He is a seasoned manager from the semiconductor industry, and advisor to several successful electronics companies. The projects he engages in – especially those in the field of developing pioneering technologies – carry an unquestioned mark of quality, and the companies supported by him achieve currently valuations counted in billions of dollars. Another experienced American business player in XTPL’s advisory board – Amir Nayyerhabibi – is a partner at Benhamou Global Ventures, an investment fund from Silicon Valley. Amir is an expert on semiconductors. In the past he was the creator of, among others, StratumOne Communications, which in 1999 Cisco took over for USD 435 million. Later, in Cisco itself, Nayyerhabibi was the key manager. This “serial entrepreneur” – as the Wall Street Journal once wrote about him – supports us in dealing with the great industry in the USA. In May 2019, the advisory board was joined by Hiroshi Menjo, the co-founder of NSV Wolf Capital, a strategic fund with Silicon Valley, an expert in implementing Japanese entry strategies and forging strategic alliances with Japanese companies.
Let’s look at the market benefits ensured by the XTPL solution in individual application fields:
- increasing production efficiency
- reducing the number of rejects
- increasing the resolution
- solution for displays on flexible substrates
- potential for further miniaturization.
- significant reduction of glass conversion time
- improved product performance
- opening to new market segments.
- precise joining of microelectronic circuits with PCBs
- reducing the size of junctions and electronic connections of integrated circuits
- improving work efficiency by more effective removal of the heat generated by the circuit.
- maximum density of conductive structures
- potential for further miniaturization.
- cost effective and scalable process
- increasing production efficiency.
- previously unattainable system complexity
- virtually unlimited number of combinations (inimitable)
- versatility of: substrates, implementation and control
- cost effective and scalable solution.
- simple and quick detection
- comprehensive solution for “points of care”
- cost effective and scalable production
- potential for further miniaturization.
- energy efficiency increased by about 4–5%
- cost effective and scalable production
What sources does the Company use to finance its current operations?
The main source of financing XTPL’s operations is the commercialisation of its proprietary technology through regularly generated revenue streams within all 3 business lines: projects directed towards industrial implementation on the production lines of global manufacturers of electronics, sales of the Delta Printing System prototyping devices and conductive nanoinks orders. The second source of financing XTPL’s operations is revenue from grants, which, although not key, continues to be an important part of revenue and supports ongoing R&D projects.
What potential does XTPL have and how does it build value?
The technological innovation developed by XTPL has the potential to first revolutionise and then to become a standard in many selected areas of the printed electronics sector. Just as today we cheaply and quickly print newspapers and books, in the near future we will print displays, solar cells, biosensors and other advanced elements. This is not just a vision anymore. With XTPL nanoprinting, this is a fast approaching reality
The Company expects to generate revenues from licensing of the technology as part of specific applications for partners who will declare readiness for independent industrial development of the Company’s technology. XTPL will gain access, as the beneficiary, to markets whose size is measured in billions of dollars. If successful, the commercialization of XTPL solutions for those markets will also mean a huge growth in terms of the Company’s value, a growth based in large proportion on the intellectual property secured by the Company. Such advanced technological undertakings – as the one conducted by XTPL – require time and a longer incubation period, but the expected profits are also significantly higher.
The key factors affecting the Company’s significant potential are:
- megatrends favorable for XTPL (miniaturization, scalability and additivity);
- target market of USD 73 billion (2030);
- industry leaders’ interest in the Company’s technology;
- high entry barriers for competitors; significant exit barriers for Clients.