ZWIPE AS - Q3 2024 Operational Update

07 Nov 2024 08:00 CET

OSLO, NORWAY - 7 November 2024 - During the third quarter, Zwipe experienced a
significant positive development by signing several Proof-of-Concept (PoC)
projects.

Significant events during the quarter

?       Zwipe announced that one of the world's top digital music streaming
service providers is currently testing Zwipe's biometric access cards. This
evaluation is part of a potential deployment of Zwipe's technology across the
company.

?       A leading U.S.-based social media and IT company is currently testing
Zwipe Access biometric cards via their strategic technology partner, mandated to
assess and implement technology globally, considering the possible deployment of
this cutting-edge solution across its facilities.

Significant events after the quarter

?       As part of the official launch of LEGIC neon on card Zwipe and LEGIC
Identsystems are excited to announce the introduction of biometric cardholder
verification on Zwipe Access for LEGIC-based access control systems. This
enhancement, now available commercially, integrates Zwipe's industry-leading
biometric technology into the latest version of LEGIC's neon application.

?       One of the prominent global leaders in the pharmaceutical industry is
currently testing Zwipe Access biometric cards, in collaboration with a trusted
partner, with a view to potentially deploy these innovative cards in its
operations.

Message from the CEO

During the quarter, we have shifted focus from mainly expanding our network of
partners to targeting potential end user enterprises with our partners in order
to generate new PoCs, Pilots and orders, for start using our biometric access
cards in daily operation.

We have several tests ongoing and as communicated, with employees in a number of
well-known major enterprises, all of them leaders in their respective sector.
The employees have started to use our biometric access cards on a daily basis in
order to evaluate a possible deployment across their company's and facilities.

We feel confident that a number of the engagements and opportunities our
partners are working with us on will result in commercial and operational
deployments in a very short timeframe.

Also mentioned in the first half report, we have during the third quarter, also
mentioned in the first half report, communicated a number of new partner
agreements .

AXYS, a specialist in integrating access control, video surveillance, intrusion
detection, and other security technology solutions-Our collaboration aims to
deliver our biometric smartcard technology solution to their global customer
base.

ABC Security Access Systems, a prominent Canadian integrator specializing in
physical security solutions focusing on key sectors such as retail, government,
commercial and institutional.

ZKTeco is a globally recognized leader in access control solutions and together
we aim to deliver cutting-edge, high-security access solutions in Europe.

All existing and lately added partners are generating a growing funnel of
opportunities in the selected countries and verticals we are focusing on. Our
focus now is purely on converting these opportunities to commercial and daily
operational using of our biometric access cards.

As communicated today, in a separate press release, Zwipe's board decided to
initiate a rights issue of NOK 40 million. In order to extend our runway with
the capital to be raised, we have further reduced our personnel costs and we
project our operating expenses to come down to approximately 2.6 mNOK per month
going forward.

Financial review

Zwipe reported total revenue of 0.4 mNOK during Q3 2024 mostly related to the
access products and services, versus revenue of 1.8 mNOK in Q3 2023 related to
payment products and services.

Cash flow from operations after changes in working capital was -14.8 mNOK versus
-27.2 mNOK in Q3 2023, which is driven by the significantly lower operating
expenses during 2024 compared to Q3 2023.

Cash and cash equivalents stood at 10.5 mNOK at the end of Q3 2024 compared to
48.3 mNOK at the end of Q3 2023, and 42.2 mNOK at the end of 2023.

Hugo Petit
Interim CFO and Head of IR
ir@zwipe.com

About Zwipe

Zwipe is a technology solution provider that enables battery-less, ultra-low
-power, self-contained biometric authentication solutions. Together with an
ecosystem of partners including global brands within security, financial
services and ID applications, Zwipe is "Making Convenience SecureT". Using
advanced fingerprint recognition while protecting personal information, Zwipe's
solutions address the data theft pitfalls inherent in traditional authentication
methods. Headquartered in Oslo, Norway, Zwipe has spent the last 10 years
developing its unique power harvesting technology platform in combination with
security solutions based on international infrastructure standards.

To learn more, visit www.zwipe.com

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