Vigo Photonics S.A.

Regulatory Filings • Feb 12, 2025

Report Content _#160;

Signingthe contract for co-financing the project - an important element of theimplementation of the Strategy

Article 17 section 1 MAR - confidential information

Management Board of VIGO Photonics S.A. (_quot;Company_quot;, _quot;Issuer_quot;) informsthat yesterday it received information about the signing of an agreementby the National Center for Research and Development with the Company forco-financing the Issuer's project entitled "Integrated photonics systemsfor free-space optical communication (FSOC) systems." (_quot;Project_quot;) underPriority I of the European Funds for a Modern Economy 2021-2027 Program(FENG).

The Issuer announced the inclusion on the list of entities recommendedfor co-financing in current report No. 29/2024 of November 28, 2024.

The project will be implemented by a scientific and industrialconsortium led by VIGO Photonics. The consortium members are the WarsawUniversity of Technology (Institute of Microelectronics andOptoelectronics and the Center for Advanced Materials and TechnologiesCEZAMAT) and the Institute of Microelectronics and Photonics of theŁukasiewicz Research Network.

The total amount of eligible costs of the Project is PLN 25,000,187.50,and the amount of funding is PLN 21,451,628.08, which constitutes 85.81%of the total costs eligible for support. The Issuer's eligible costsamount to PLN 12,500,187.50, and the co-financing for the Companyamounts to PLN 8,951,628.08.

The duration of the Project and the funding is 36 months. Projectimplementation will start on January 1, 2025.

The main goal of the project is to develop and comprehensively researchnew qualitative solutions for free space optical communication (FSOC)systems, based on integrated photonics solutions. As part of theimplementation of industrial research and development work, it isassumed that the design and production of integrated, multi-channeltransmitting and receiving systems, equipped with control electronicssystems, optical systems for beam forming and positioning systems. It isassumed that technology demonstrators will be developed - free-spacecommunication systems operating in various spectral ranges, i.e. theclassic near-infrared (NIR) range for fiber-optic telecommunications,corresponding to a wavelength of 1550 nm, and in the mid-infrared (MIR)range, which is much more attractive for free-space communicationcovering two subbands - 4-6 _#956;m and 8-12 _#956;m. The scope of the projectincludes in particular the design, production and testing of integratedmulti-channel transmitting and receiving systems for the FSOC system inthe NIR and MIR range. The work planned in the project will enable thedevelopment of PIC-compatible QCL lasers and detectors with operatingfrequencies above 2.5 GHz, as well as prototype ICL laser systems, notyet produced in Poland.

Project funding supports the development of one of the product linesbased on scalable technologies developed as part of the HyperPICproject. The Issuer announced the acquisition of the HyperPIC project incurrent report no. 17/2024 of May 15, 2024.

Each solution intended for customers has a unique application, whichdetermines its design and functional assumptions. By their nature, theirdevelopment and improvement takes place independently of the investmentpart, which involves significant additional financial outlays. The fundsobtained as part of application projects (including the Project) supportthe implementation of activities related to the development ofindividual products.

The HyperPIC project, implemented by VIGO Photonics, focuses ondeveloping a complete technology chain for mid-infrared photonicintegrated circuits (mid-IR PICs) and launching the first factory(technology foundry) ensuring the possibility of producing these systemson a mass scale.

Taking into account the value of the subsidy obtained, the Issuerestimates that it will be of significant importance from the point ofview of the financial situation, implementation of the strategy anddevelopment prospects of the Issuer. The implementation of the Projectis a continuation of the implementation of the assumptions of theCompany's Strategy for 2021-2026, which the Issuer informed about incurrent report No. 12/2021 on June 16, 2021.