XTPL S.A.

Earnings Release • Oct 17, 2024

Report Content Title:

Preliminary estimates of revenue from sales of products and services forQ3 and nine months of 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 the thirdquarter and after nine months of 2024.

1. The estimated value of consolidated revenues from sales of theCompany's products and services in the third quarter of 2024 amounted toPLN 1,076 thousand. In the same period of the previous year, revenuesamounted to PLN 3,639 thousand. The figure does not include revenuesrelated to the realization of grants related to the Issuer's researchand development projects.

At the same time, in the last 30 days, the Company has received fourmore orders for DPS equipment, one of which has already been deliveredto the customer and together with the others will positively affect Q4revenues.

2. The estimated value of the Company's consolidated revenues from salesof products and services for nine months of 2024 amounted to PLN 6,719thousand, compared to PLN 9,171 thousand recorded in the same period ofthe previous year. The figure does not include revenues related to therealization of grants related to the Issuer's research and developmentprojects.

The value of funds raised by the Company from the implementation ofgrants in Q3 2024 amounted to PLN 670 thousand, compared to PLN 300thousand in Q3 2023. On a year-to-date basis, the value amounted to PLN1,129 thousand, compared to PLN 1,656 thousand after 9 months of 2023.The Issuer's Management Board notes that in accordance with the rules ofaccounting for such grants, part of the above-mentioned funds will beincluded in the Company's income statement for the 3 quarters of 2024,while the remaining part will be included in the balance sheet, in thedeferred income item.

The estimated value of the Company's cash balance as of September 30,2024 amounted to PLN 4,676 thousand, compared to PLN 14,003 thousand asof June 30, 2024, and was in line with the Company's assumptions and theimplemented Strategy for 2023-2026, assuming an investment process ofbuilding and strengthening the organization capable of realizing thetarget of PLN 100 million in revenue from sales of products and servicesby the end of 2026.During the 9 months of 2024, the Company madesignificant investments in three key areas: production, sales andmarketing, and R_amp;D.As a result, in the production area, theCompany, among other things, increased production capacity to handle thescale of orders in line with the Strategy, doubled the production rateof DPS equipment, and reduced delivery time to customers from severalmonths to a few weeks, and secured a stock of key components forproduction.

In the sales area, the Company made significant progress in industrialprojects, significantly increasing the number of sales opportunities inthe pipeline and the degree of advancement of projects, intensifiedsales and marketing activities, built an international businessdevelopment team, made expenditures to open a sales and demonstrationbranch in the US (Boston), expanded its network of internationaldistributors, and expanded its presence at international conferences andindustry trade shows.

In the R_amp;D area, the Company intensified the development of existingproducts and the development of new products supported by theestablished team for the management of current and future products - NPD(New Product Development), resulting in, among other things.introduction of gold ink and also preparations for the launch of thefourth business line in 2025, which will contribute to the strategicgoal for 2026. The new product will fill an identified market nichebetween DPS devices and industrial modules and will be designed forsmall-scale production of a High Mix Low Volume (HMLV) nature. Theproduct is being developed based on confirmed interest from existing andpotential XTPL customers, and the first prototypes could reach customersin 2025.

The Company's management emphasizes that the data presented above areestimates and preliminary, which means that they may ultimately differfrom those presented in the interim report.