Realfiction

Important key information and figures:
• Rights issue and loan refinancing to extend financial runway
• 55% decrease in total revenue in Q2-2025 compared to Q2-2024
• 51% decrease in gross profit in Q2-2025 compared to Q2-2024
• 8.6% increase (5.2 points) in gross profit margin in Q2-2025 compared to Q2-2024
• Solvency ratio of 47.6% at 30 June 2025 compared to 56% at 31 December 2024

During and after the period, Realfiction experienced the following development in its business:

Financial runway: As previously communicated, we are carrying out a rights issue of shares and warrants which, together with a SEK 15 million refinancing of the Fenja Capital loan, is expected to provide the funding needed to commercialize DPT and potentially enable the company to reach operational cash-flow positivity from its licensing based DPT business model, based on our underlying forecast assumptions.

Directional Pixel Technology^TM (“DPT”): In the second quarter of 2025, we continued to achieve considerable progress in the commercialization of our DPT platform. The major milestone achieved was the unveiling of the world’s first MicroLED-based 3D display, which is powered by DPT and developed in close cooperation with PlayNitride. The first presentation was made at Touch Taiwan 2025 in April, where it drew major attention from the display industry as well as display tech enthusiasts. We are working on the next iteration of our Spatial Light Modulator (SLM), as this is needed to remove the last visual imperfections. This iteration will also introduce the super-fast Ferro-Electric Crystal (FLC) material, for which Realfiction has secured an exclusive license to. When successfully implemented in our SLM, the FLC material will enable not only an image free from the imperfections from the first version, but even more importantly enable the full set of DPT features including 3D for multiple users with individual perspectives/images for each person.

Mixed Reality displays: In Q2-2025, our legacy mixed reality displays continued to contribute with a valuable positive cash flow. There was an expected decline in revenue compared to the same period last year due to our strategic shift in focus and resources toward the DPT business, but we continue to see excellent implementations of these displays around the world from our partners.

CEO Clas Dyrholm comments: “With ongoing progress in the refinements of our DPT platform, existing commercial partnerships and encouraging discussions with more potential commercial partners in our focus areas, we are eager to start capitalising on our developments. We are still targeting NRE and up-front payments from multiple customer projects in 2025 and 2026, followed by per-unit license fees from commercial products beginning in late 2026 or early 2027.“

We highlight the following key figures from the Q2 Interim Report:

Q2 2025 (1 April – 30 June 2025)
• Revenue: TSEK 1,132 (Q2-2024: TSEK 2,508)
• Gross profit: TSEK 740 (Q2-2024: TSEK 1,511)
• Gross profit margin: 65.4% (Q2-2024: 60.2%)
• Result after financial items: TSEK -7,662 (Q2-2024: TSEK -8,508)
• Earnings per share: SEK -0.38 (Q2-2024: -0.43)
• Cash flow from operating activities: TSEK -4,208 (Q2-2024: TSEK -6,122)
• Equity: TSEK 33,822 (Q2-2024: TSEK 52,309)

H1 2025 (1 January – 30 June 2025)
• Revenue: TSEK 2,006 (H1-2024: TSEK 4,211)
• Gross profit: TSEK 1,231 (H1-2024: TSEK 2,583)
• Gross profit margin: 61.4% (H1-2024: 61.3%)
• Result after financial items: TSEK -16,071 (H1-2024: TSEK -16,631)
• Earnings per share: SEK -0.81 (H1-2024: -0.85)
• Cash flow from operating activities: TSEK -11,101 (H1-2024: TSEK -11,503)
• Equity: TSEK 33,822 (H1-2024: TSEK 52,309)