Q3 2024 results

October 24th, 2024 Emma Tryti, CEO Magnus Bekkelund, Interim CFO

Q3 highlights

Consumer segment with quarterly revenues of USD 7.7M, up 21% YoY in a quarter driven by large retail events and robust demand for products measuring radon.

Reorganization and restructuring completed, in line with updated strategy. One-off costs in Q3, but lower cost base going forward.

Launched Wave Enhance, received good feedback from both Amazon and leading Nordic retail accounts.

Q3 revenues of USD 10.0M

Q3 gross profit of

and channel mix.

Q3 total ARR of

USD 4.3M

segment.

down 7% from USD 6.3 million in Q3 23. Gross

margin impacted by segment

USD 5.8M

on par with Q3 last year despite a 42% decline in the Business segment.

GROSS PROFIT (USD M)

ANNUAL RECURRING REVENUE (USD M)

Note: numbers may not sum due to rounding

up 6% YoY, supported by

low churn in the Business

Investing in one, united value proposition

Executing on updated strategy

Completed:

20% work force reduction completed, reducing annual operating expenses by about USD 2.5 million in 2025
Leaner organization and operating model established
USD 0.9 million charged in restructuring cost in Q3 24
Focus on progressing on our path to profitability through execution of the updated strategy

from Q2 presentation August 21st, 2024

Consumer revenues +21% YoY

Continued strong demand

Growth mainly driven by increased demand for easy-to-use safety related products for radon monitoring in North America.
The retail channel was the main revenue contributor, driven by high velocity events.
Direct sales through Airthings.com continue to excel, up 42% YoY, despite generally lower digital sales during the summer.

Steady growth in new device registrations

Consumer segment Q3 update

New consumer device registrations

(Indexed – Q1 20 = 100)

Strengthened customer loyalty

Amount of new device registrations for connected products slightly down from Q3 23 due to channel and product mix.
Repeat sales accounted for 27% of total sales in Q3 24, on par with Q3 23, confirming customer satisfaction and loyalty.
View Plus continued to be the most popular second purchase.

Strong customer satisfaction across software and hardware

Positive sales momentum in the Business segment

Growing pipeline, in line with strategy update

YoY revenue comparison impacted by one, large customer deal in Q3 23.
Proactive direct sales to non-scalable business customers halted, in line with strategy update
Increasing sales momentum, with medium-sized orders from large existing customers. Revenues up 32% from Q2 24.
Challenging real estate market and no new large projects in the third quarter. Our pipeline continued to grow; long-term outlook remains positive.

Focus on schools and large enterprises representing the highest ROI

Business Segments

	Schools and public buildings	Large enterprises		Other
Examples of current end customers	Ivy league universities California schools Municipalities in Norway	Multiple Fortune 500 companies in the US Several European based global enterprise customers	Hotels Retail Senior living	Prisons Museums Warehouses	Hospitals Gyms Restaurants
Device density	Higher		Lower
Win rate	Higher		Lower
Avg. deal size	Higher		Lower
LTV/CAC	Higher		Lower

Considerable growth in device deployment

Business segment Q3 update

Devices in the field (Business segment)

Number of devices in the field +25%

• Increasing demand from large enterprise clients that value employee wellness and performance.

Steady sales at modest levels in Pro

Pro Segment Q3 update

YoY sales slightly down

• Mainly sales to radon professionals in the US market.

ARR +6% YoY, driven by the Business segment

Annual Recurring Revenue Q3 update

Annual Recurring Revenue (USD M)

ARR +6% YoY

ARR from the Business segment +9% to USD 3.2 million.
Driven by large installations at major enterprise customer.

Financials Magnus Bekkelund, Interim CFO

Financials, Income Statement

Income Statement

Income statement

Revenues of USD 10.0M
Gross margin of 59%, decline driven by segment and channel mix
EBITDA negative USD 1.3M at -13% EBITDA-margin, compared to 1% in Q3 24
- Includes restructuring cost of USD 0.9M.
EBIT negative USD 1.9M

(USD 1 000)	Q3 24	Q3 23	YTD 24	YTD 23
Total revenue	9 963	10 082	28 207	26 290
Cost of goods sold	4 124	3 824	11 166	10 541
Gross profit	5 839	6 258	17 041	15 750
Sales Gross Margin	59%	62%	60%	60%
Employee benefit expenses	3 560*	2 745	11 026	11 178
Other operating expenses	3 613	3 440	10 854	10 439
EBITDA	-1 334	73	-4 840	-5 868
Depreciation and amortization	525	390	1,479	1,153
Impairment	0	0	0	0
Operating profit / EBIT	-1 859	-318	-6 319	-7 020
Financial income / (expenses)	-109	-237	810	1 036
Profit (loss) before tax	-1 968	-555	-5 509	-5 984
Income tax	-216	-111	-899	-1 247
Net profit (loss)	-1 752	-444	-4 610	-4 737

Earnings per share (USD)
Basic earnings per share	-0.01	-0.00	-0.02	-0.02
Diluted earnings per share	-0.01	-0.00	-0.02	-0.02

Gross margin impacted by segment and channel mix

Income statement

	Consolidated income statement (USD 1,000)	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24
	Consumer
	Total revenues	6,399	7,004	7,786	6,808	7,715
	Cost of goods sold	2,616	2,749	3,383	2,857	3,539
	Gross profit	3,783	4,255	4,403	3,951	4,176
	Sales Gross Margin	59 %	61 %	57 %	58 %	54 %

	Business
	Total revenues	3,117	2,866	1,151	1,378	1,815
	Cost of goods sold	1,086	962	301	369	516
	Gross profit	2,031	1,904	850	1,010	1,299
	Sales Gross Margin	65 %	66 %	74 %	73 %	72 %
	Professionals
	Total revenues	566	432	574	546	432
Consumer	Cost of goods sold	122	50	71	62	69
Business	Gross profit	444	382	503	484	363
	Sales Gross Margin	79 %	88 %	88 %	89 %	84 %
Professionals
Total	Total revenues	10,082	10,302	9,511	8,733	9,963
	Gross profit	6,258	6,540	5,756	5,445	5,839
0	Sales Gross Margin	62 %	63 %	61 %	62 %	59 %

Continuing work to reduce inventories

Average days of inventory down 15% from Q3 23

Total inventories reduced to USD 13.8M, down USD 1.8M from Q3 23
- Ramped-up production of radon products in Q3 for deliveries in Q4
Decline in average days of inventory from 392 to 333.
Aim to reduce inventory to 250 days at year end
- Assuming no major currency effects to boost value of inventory

• Cash

Balance Sheet

(USD 1 000) 30.09.2024 30.09.2023 Goodwill 2 694 2 665 Intangible assets 3 822 3 290 Deferred tax assets 9 606 7 893 Property, plant and equipment 469 686 Right -of-use assets 1 872 2 600 Other non -current assets 80 115 Total non -current assets 18 543 17 249 Inventories 13 834 15 678 Trade receivables 9 153 9 095 Other receivables 5 263 4 433 Cash and cash equivalents 9 029 15 473 Total current assets 37 279 44 678 Total assets 55 822 61 927 Total equity 44 125 49 603 Non -current interest -bearing liabilities 1 332 1 318 Non -current lease liabilities 1 271 2 009 Other non -current liabilities 77 108 Total non -current liabilities 2 681 3 436 Current lease liabilities 831 848 Trade and other payables 4 997 5 242 Contract liabilities 1 487 1 292 Income tax payable 30 Other current liabilities 1 700 1 476 Total current liabilities 9 016 8 888 Total equity and liabilities 55 822 61 927 • Change in assets • Deferred tax asset • Inventories • Trade receivables • Change in liabilities • Limited changes • Equity ratio

Financials, Cash Flow

Cash flow statement

Q3 24 Cash bridge

(USD 1,000

• Negative cash flow from operating activities of USD 1.9M

• Loss offset by financial items and depreciation and amortization.

• Cash flow from investment activities of USD -0.3M

Development expenditures, PPE and interest received .
Cash flow from financing activities of USD -0.2M
- Lease liabilities
Cash balance of USD 9.0M and total available liquidity of USD 15.0M including the revolving credit facility of USD 6.0M with Danske Bank.

Expect continued growth

Strong growth rate in the Consumer segment expected Potential product liability could impact Q4 revenues

Strong growth rate in the Consumer segment expected in the fourth quarter, which is peak season for air quality monitoring and strategic sales events.
Underlying growth in the Business segment expected to be stable. However, we expect lower revenues in the Business segment in Q4 24 than in the same period last year, which was exceptionally strong due to one large transaction.

Guidance (USD M)	Q4 2024
Revenues	9.5 – 12.0
Annual Recurring Revenues	4.3 – 4.5

Total revenues in Q4 24 may be impacted by a possible buyback of inventory due to defective batteries in one product.
Limited to one product/one batch of batteries delivered in 2022.
Q4 24 total revenues may be reduced by up to USD 1.2 million.
Assessments are ongoing.

Please see note 15 in the accounts for further details

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This presentation was prepared in connection with the Q3 results released on October 24th, 2024. Information contained herein will not be updated. The following slides should also be read and considered in connection with the information given orally during the presentation.