Pressreleaser | 25 Apr 2024 | Zwipe

Zwipe AS: ZWIPE AS – Q1 2024 Operational Update

Significant events during the quarter

• Zwipe announces new strategic direction focusing on Zwipe Access alongside a company restructuring to create a near-term path to profitability.
• Tadera and Zwipe announce that the Zwipe Access Biometric Smart Card System has successfully completed operational test and evaluation by National Safe Skies Alliance, Inc. (Safe Skies) at Richmond International Airport (RIC).
• SCAP, the leading distributor of access control cards and readers in France, focusing on providing advanced security RFID solutions, is to introduce the innovative ”biometricsystem-on-card” to SCAP’s customers in France.

Message from the CEO

During the quarter, we have focused on the implementation of the restructuring as well as alignment on the new strategy focusing on the
access control market.

Also, we have continued to establish and develop strategic partnerships in the Nordics, DACH (Germany, Austria and Switzerland), France,
Spain, Italy, UK and North America, that enhance our reach and credibility within the industry with good traction and response. Collaborations and
the establishment of go-to-market partnerships with key players in the security and technology sectors are increasing both our market presence
and growth potential and we have expanded our network of distributors and resellers, as well as system integrators and installation companies in
all geographies.

In France we signed a distribution agreement with SCAP, a major distributor giving us access to many local system integrators and installers and a large pool potential of French end user enterprises.

Already now, several new leads have been generated and starter packs have been distributed during the beginning of the second quarter so we can run Proof of Concept’s (PoC’s).
 

We are primarily targeting three verticals. For the Airport, Power Plants and Data Centers we have developed specific value propositions that we
are getting good response and traction on. The Fourth area we are approaching is more generic with for example government agencies, major
tech companies and multinational enterprises in various sectors and verticals.

We are active in participating in major security trade shows and events and recently visited ICS West (International Security Conference &
Exposition), the worlds largest security trade show hosted in Las Vegas, where we had many great interactions with existing and potential
new partners, discussing new opportunities and engagements.

I am impressed by the resilience of our staff, who, after several major changes, continue to deliver and are committed to 100% to achieve
our new goals. I should also not forget to thank those who have now have been forced to leave the company as a result of the changes.
 

Overall, the progress that has been made during this first quarter, further reinforces our view that the prospects for biometric access cards are
tangible and that we have a compelling product offering to the market. The interest we have created for increasing enterprise security via
implementation of biometric access cards, the network of partners we have built in selected markets and the amount of opportunities we
are working on is far greater than I hoped for 12 months ago. While I am frustrated that our laserfocus on generating short-term revenue has not
yet yielded results, I remain confident that the strong interest in our offering will lead to tangible results in the coming quarters.

Financial review

Zwipe reported total revenue of 0.1 mNOK during Q1 2024 mostly related to the access products and services, versus revenue of
1.7 mNOK in Q1 2023 related to payment products and services.

Cash flow from operations before changes in working capital was -16.7 mNOK versus -24.9 mNOK in Q1 2023, which is driven by the
significantly lower operating expenses during Q1 2024 compared to last year’s quarter.

After the completion of the rights issue that raised approximately 35 mNOK in new capital, cash and cash equivalents stood at
42.3 mNOK at the end of Q1 2024 compared to 121.9 mNOK at the end of Q1 2023, and 42.2 mNOK at the end of 2023.

To learn more, visit http://www.zwipe.com .

For more information, please contact:

Hugo Petit, CFO and Head of IR

ir@zwipe.com