Zwipe publishes its 2022 annual report

30 Mar 2023 08:00 CEST

OSLO, NORWAY - 30 March 2023 - Zwipe AS ("Zwipe" or "the company") has today
released its Annual Report 2022, including the Board of Directors report and
financial statements. The report and annual accounts were approved by the Board
of Directors after the close of business on 29[th] of March 2023. The 2022
Annual Report is attached to this release and available at
https://www.zwipe.com/investors/reports.

Significant events 2022

· The board of Zwipe proposed a fully guaranteed rights issue raising
approximately NOK 100 million.

· 172% Q/Q revenue growth in Q4 and strongest quarterly sales revenue in Zwipe
history.

· Visa and Mastercard both certified the Zwipe Pay Biometric Payment Card
("BPC") platform, followed by four Smart Card Manufacturer ("SCM") customers
receiving their Visa Letter of Approval ("LoA") and one SCM receiving their
Mastercard LoA for cards built on the Zwipe Pay platform.

· Zwipe was chosen by Placard and a respected Tier-2 SCM in Europe to deliver
BPCs to their bank issuer customers.

· Seven new issuers across Europe, Asia Pacific, the Middle East and Africa
signed up with Zwipe to launch BPC pilots.

· Civix announced a partnership with Zwipe to bring biometric access control
cards to airports in the USA and elsewhere in the Americas.

· Fraport AG chose Zwipe for a pilot project on biometric access control at
Frankfurt Airport, with Zwipe successfully completing the project and short
-listed as a supplier when the project moves to commercial tender.

2022 operational review

In 2022, Zwipe achieved several significant milestones and entered an "execution
first" strategic phase. The company finalized technological development of the
Zwipe Pay product and received both Visa and Mastercard certification, becoming
the first biometric payment card platform available for sale on the open market
to be certified by both major payment schemes.

A primary focus for the company in 2022 was executing our signed issuer pilots,
with seven issuer pilot projects in the execution phase. During the second half,
we implemented software changes related to biometric performance in Zwipe Pay
cards and also updated our internal test procedures. These changes resulted in a
more robust product and enhanced payment transaction experience that is expected
to lead to faster completion of ongoing pilot projects as well as a
significantly faster pace of new project launches in the coming quarters - with
streamlined execution and commercial launch in all areas.

2022 also saw the company establish Zwipe Access as a separate business line
with substantial revenue potential.  We completed an important pilot project for
Fraport AG at Frankfurt International Airport, with Zwipe shortlisted as an
access control solutions provider when Fraport moves forward with its commercial
tender process in 2023. We further reinforced our strong position in the airport
vertical when Civix, a leading US provider of airport security solutions,
selected Zwipe's access control technology to augment their airport security
propositions. The partnership with Civix is representative of our go-to-market
strategy in access control to work with system integrator partners and
distributors to bring our solution to market rapidly.

2022 financial review

Zwipe reported total revenues of 3.9 mNOK during 2022 vs. 2.5 mNOK in 2021,
reflecting an underlying increase in Zwipe Pay revenues of 72%. Total operating
expenses were 108.1 mNOK in 2022 compared to 85.5 mNOK in 2021. After adjusting
for one-off, non-recurring costs in 2022 and receipt of a government grant in
2021, operating expenses increased to 102.2 mNOK in 2022 from 92.6 mNOK in 2021.
Adjusted EBITDA was -96.4 mNOK in 2022 compared to -81.7 mNOK in 2021.

Underlying net cash use in operating activities in 2022 averaged 9.0 mNOK per
month, an increase of 41% from 2021. This was mainly due to higher personnel
costs, but non-recurring charges also inflated the 2022 monthly average burn
rate and are not expected to continue.

On 31 December 2022, cash and equivalents were 50.5 mNOK, down from 152.3 mNOK
at the end of 2021. Total equity at the end of the year was 54.6 mNOK, while
total liabilities were 13.0 mNOK. This resulted in an equity ratio of 81%, down
slightly from 91% at end 2021.

On 22 November 2022, Zwipe announced a rights issue raising approximately 100
mNOK in capital, with the transaction now being completed. The rights issue was
fully guaranteed through a combination of subscription commitments and
underwriting commitments from the three largest shareholders in Zwipe. It was
carried out in order to strengthen the company's financial position and enable
the transition from start-up to scale-up and achieve larger-scale
commercialization. The fundraising will ensure the Group has sufficient working
capital for the period covering at least 12 months from the date of close.

Conclusion and going forward

Zwipe ended the year on a positive note with sequential quarterly growth of 172%
in Q4 revenue and the?single largest commercial order in a quarter to date.
There is reason to believe that the markets for Zwipe Pay and Zwipe Access are
nearing an inflection point for increased commercial adoption of biometric
technology solutions. Zwipe has good commercial traction, and expects more
positive news flow in coming quarters.  Our goals for 2023 include: executing
the technology roadmap, completing the current R&D projects and maturing Zwipe
technology to meet evolving demands; accelerating go-to-market for Zwipe's
solutions to achieve large commercial scale; increasing our customer pipeline;
supporting our SCM customers in becoming certified and mass production ready;
executing more pilot projects in a streamlined manner; and continuing to invest
intelligently in people and technology.

The aforementioned actions are expected to lead to positive business outcomes in
2023.

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This is information that Zwipe AS is obligated to make public pursuant to the
continuing obligations of companies admitted to trading on Euronext Growth Oslo
(Euronext Growth Oslo Rule Book - Part II) and on Nasdaq First North Growth
Market. Certified Adviser on Nasdaq First North is FNCA Sweden AB, info@fnca.se.
The information was submitted for publication, through the agency of the contact
person set out below, at 08:00 on 30 March 2023.

###

About Zwipe

Zwipe believes the inherent uniqueness of every person is the key to a safer
future. We work with great passion across networks of international
organizations, industries and cultures to make convenience safe and secure. We
are pioneering next-generation biometric card for payment and physical & logical
access control and identification solutions. We promise our customers and
partners deep insight and frictionless solutions, ensuring a seamless user
experience with our innovative biometric products and services. Zwipe is
headquartered in Oslo, Norway, with a global presence.  To learn more, visit
http://www.zwipe.com.

For more information, please contact:

Danielle Glenn, CFO and Head of IR
ir@zwipe.com

More information:
Access the news on Oslo Bors NewsWeb site

586617_Zwipe_Annual_Report_2022.pdf