Zwipe AS — Earnings Release 2024

Apr 25, 2024

ZWIPE AS - Q1 2024 Operational Update

ZWIPE AS - Q1 2024 Operational Update

OSLO, NORWAY - 25 April 2024 - During the first quarter, Zwipe experienced a

breakthrough in France with SCAP introducing Zwipe's access cards to their

customers.

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

About Zwipe

Zwipe is a technology solution provider that enables battery-less, ultra-low

-power, self-contained biometric authentication solutions. Together with an

ecosystem of partners including global brands within security, financial

services and ID applications, Zwipe is "Making Convenience SecureT". Using

advanced fingerprint recognition while protecting personal information, Zwipe's

solutions address the data theft pitfalls inherent in traditional authentication

methods. Headquartered in Oslo, Norway, Zwipe has spent the last 10 years

developing its unique power harvesting technology platform in combination with

security solutions based on international infrastructure standards.

To learn more, visit www.zwipe.com