XTPL S.A.

Earnings Release • Jan 22, 2025

Report Content Title:

Preliminary estimates of revenue from sales of products and services forQ4 and 2024.

Legal basis:

Article 17(1) MAR - confidential information

Content of the Report:

The Management Board of XTPL S.A. ["Issuer", "Company", "XTPL"]announces information on preliminary estimated consolidated revenuesfrom sales of products and services achieved by the Company in thefourth quarter and in 2024.

1 The estimated value of consolidated revenues from sales of theCompany's products and services in the fourth quarter of 2024 amountedto PLN 5,434 thousand. In the corresponding period of the previous year,revenues amounted to PLN 4,247 thousand. The reported value does notinclude revenues related to the realization of grants related to theIssuer's research and development projects.

2 The estimated value of consolidated revenues from sales of theCompany's products and services for 2024 amounted to PLN 12,095thousand, compared to PLN 13,418 thousand recorded in the same period ofthe previous year. The reported value does not include revenues relatedto the realization of grants related to the Issuer's research anddevelopment projects.

The value of grants in Q4 2024 amounted to PLN 1,058 thousand, comparedto PLN 700 thousand in Q4 2023. Cumulatively, the value amounted to PLN2,187 thousand, compared to PLN 3,400 thousand in 2023. The Issuer'sManagement Board notes that in accordance with the rules of accountingfor such grants, part of the above-mentioned funds will be included inthe Company's income statement for 2024, while the remainder will beincluded in the balance sheet, in the deferred income item.

The estimated value of the Company's cash balance as of December 31,2024 was PLN 27,881 thousand, compared to PLN 4,810 thousand as ofSeptember 30, 2024. In accordance with the Company's assumptions and theimplemented Strategy for 2023-2026, which assumes an investment processof building and strengthening the organization capable of realizing thegoal of PLN 100 million in revenue from the sale of products andservices by the end of 2026, the Management Board of XTPL on October 17,2024 [CR No. 50/2024 dated 17.10.2024] decided to raise financingthrough the process of issuing shares, in order to realize the secondand final investment stage. As a result, the Company raised PLN 27.6million in December 2024 to implement the 2023-2026 Strategy.

In the first stage, the Company made significant investments in threekey areas: production, sales and marketing, and R_amp;D. As a result, in theproduction area, the Company, among other things, increased productioncapacity to handle the scale of orders in line with the Strategy,doubled the production rate of DPS equipment, and reduced delivery timeto customers from several months to a few weeks, and secured a stock ofkey components for production.

Within the sales area, the Company made significant progress inindustrial projects, increasing the number of sales opportunities in thepipeline and the degree of advancement of projects, intensified salesand marketing activities, built an international business developmentteam, made expenditures to open a sales and demonstration branch in theUS (Boston), expanded its network of international distributors, andexpanded its presence at international conferences and trade shows. As aresult, the Company, among other things, sold the first batch of UPDmodules for industrial implementation on the production line ofultra-high-resolution displays of a leading display manufacturer inChina on January 3, 2025 [CR 1/2025 dated 03/01/2025].

In the R_amp;D area, the Company stepped up development of existing productsand work on new products supported by the established current and futureproduct management team - NPD (New Product Development), which resultedin, among other things. introduction of gold ink and also preparationsfor the launch of the fourth business line in 2025, which willcontribute to the strategic goal for 2026. The new product will fill anidentified market niche between DPS devices and industrial modules andwill be designed for small-scale production of a High Mix Low Volume(HMLV) nature. The product is being developed based on confirmedinterest from existing and potential XTPL customers, and the firstprototypes could reach customers in 2025.

The Company's Management Board emphasizes that the data presented aboveare estimates and preliminary, which means that they may ultimatelydiffer from those presented in the interim report.