Anoto

Interim Report January – June 2024

Second quarter 2024 (compared to second quarter 2023)

• Net sales for the quarter amounted to MSEK 6 (9)
• Gross margin for the quarter decreased to 38% (51%)
• Operating loss amounted to MSEK -16 (-16)
• Earnings per share before and after dilution increased to SEK -0.04 (-0.05)
• On April 29, Anoto announced that Mats Karlsson has been appointed as interim CEO of Anoto, thereby replacing the previous CEO Joonhee Won, who will be able to focus on leading the work of Knowledge AI Inc., a former subsidiary and currently associated company of Anoto.
  
• On June 29, Anoto announced that the Company has entered into a convertible investment agreement with Mark Stolkin and DDM Debt AB, two larger shareholders in Anoto. The investors will together invest USD 1,500,000 in convertible debt. Upon conversion, the Company will deliver shares through one or several set-off share issues. The funds received by the Company through the investments shall be used for general corporate purposes for the execution of the Company’s business plan.  The maturity date for the convertible loans is 28 December 2024. Any outstanding loan amount carries interest with 8.00 per cent per annum. Interest shall be payable on the earlier of (i) the maturity date for the loans and (ii) the date the loan amount is converted into ordinary shares in Anoto.  Upon request by an investor, the outstanding loan amount, in full or in part, plus accrued interest, shall be converted into newly issued ordinary shares of the Company at a conversion price of SEK 0.42, which corresponds to the current quota value of the shares, and at a fixed exchange rate of 10.51 SEK/USD. However, in the event of a Qualified Financing Round, the outstanding loan amounts shall automatically be converted into newly issued ordinary shares of the Company at a conversion price corresponding to 75 per cent of the subscription price in the Qualified Financing Round and at a fixed exchange rate of 10.51 SEK/USD. A “Qualified Financing Round” means the occurrence of a rights issue in the Company made primarily for equity financing purposes against cash consideration or by way of set-off against outstanding debts owed by the Company, raising at least an aggregate amount of USD 2.3 million (or the equivalent in SEK), including participation from the Company’s existing shareholders but excluding advisory and arrangement fees, transaction costs and expenses.  Anoto will provide security for the loans under the convertible investment agreement and will consist of a first ranking floating charge in Anoto AB in the amount of SEK 20 million and a share pledge over Anoto AB’s shares in KAIT Knowledge AI Holdings Pte. Ltd.
• On June 29, Anoto also reappointed Hans Haywood as Group CFO and Pedro Pinto as Group CTO.  Hans Haywood will also act as CEO of Anoto AB, a subsidiary of Anoto Group AB, and its subsidiaries.
  
  

Events after the reporting period

• The Annual General Meeting held on 15 July 2024, resolved to authorise the Board of Directors to resolve, with or without deviation from the shareholders’ preferential rights, against cash payment, for payment in kind or by way of set-off, to issue ordinary shares, warrants and/or convertible bonds that involve the issue of or conversion into a maximum of 66,400,000 ordinary shares, corresponding to a dilution of approximately 20 per cent of the share capital and votes, based on the current number of shares in the Company.  The purpose of this authorisation and the reason for any disapplication of the shareholders’ preferential rights is to increase the flexibility of the Company to finance the ongoing business and at the same time extend and strengthen the Company’s shareholder base of strategic or long term investors. The basis for the issue price shall be according to the prevailing market conditions at the time when shares, warrants and/or convertible bonds are issued.
  

• At the Annual General Meeting held on 15 July 2024, the Company also announced that BDO, the Company’s auditor who previously did not extend the assignment for the last year of the mandate, i.e. from the AGM 2024 up to and including the AGM 2025, has now informed the Company that they will remain as auditor for Anoto for the remaining year of the mandate.
  
  

January – June 2024

• Net sales for the period amounted to MSEK 19 (22)
• Gross margin for the period decreased to 58% (74%)
• Operating loss decreased to MSEK -30 (-31)
• Earnings per share before and after dilution decreased to SEK -0.04 (-0.10)

The report for January – June 2024 is available in its entirety on the following address: https://www.anoto.com/investors/reports/

For further information contact:

Kevin Adeson, Chairman of the Board of Directors

For more information about Anoto, visit www.anoto.com or email ir@anoto.com

Anoto Group AB (publ), Reg.No. 556532-3929, Flaggan 1165, 116 74 Stockholm

This information constitutes inside information as Anoto Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation 596/2014. The information was provided by the contact person above for publication on 22 August 2024 at 18:00 CEST.

About Anoto Group

Anoto is a publicly held Swedish technology company known globally for innovation in the area of information-rich patterns and the optical recognition of those patterns. It is a leader in digital writing and drawing solutions, having historically used its proprietary technology to develop smartpens and related software. These smartpens enrich the daily lives of millions of people around the world. Anoto currently has two main business lines: Retail Products and Enterprise Solutions & Licensing. Anoto also holds a stake in Knowledge AI, a leading AI based education solution company. Anoto is traded on the Small Cap list of Nasdaq Stockholm under ANOT.

Attachments

• Anoto Press Release 22 August 2024 (SV)
• Anoto Quarterly Report for Q2 2024 report (Swedish) FINAL