XTPL expects 2025 to be a record-breaking year; the new DPS+ business line is to support implementation of its strategic goal

XTPL has published its set of results for the first three quarters of 2024, during which it generated PLN 6.7 million in revenues from the sale of products and services, compared to PLN 9.2 million in the year-ago period. In the coming weeks, the Company expects to receive several new orders for the Delta Printing System devices, which, combined with the products delivered after the balance sheet date (1 device) and those in the course of delivery (3 devices), will have a positive impact on the Q4 results and contribute to strong year-end sales. The timing of delivery of some of the anticipated orders may be postponed to the beginning of the next year, supporting Q1 2025 revenues. Last month, XTPL announced a new business line tentatively named DPS+, which is being developed in response to market demand reported by current and potential clients. The new device will address the market niche between industrial modules and DPS devices. As a result of the higher unit price, robust margin and ultimately the potential to achieve a higher volume per order ensure that the product will support the ambition to achieve PLN 100 million in commercial sales in 2026 in the timeframe of the 2023-2026 Strategy. XTPL is making progress on all four key industrial projects with the potential to put the Company’s technology on the production lines of global manufacturers of advanced electronics. The Management Board expects 2025 to be a record-breaking and landmark year for XTPL.

“The world’s leading manufacturers of advanced electronics are currently testing four prototype industrial machines fitted with our print heads, and the end clients are the largest global manufacturers of advanced electronics from the display and semiconductor industry from South Korea, China, the USA and Taiwan. With each project we are moving forward and we feel that never before have we been closer to the moment when our partner takes the final decision to transition to the last stage – implementing our technology on an industrial line and multiplying orders for XTPL print heads. We expect 2025 to be a record-breaking and landmark year for XTPL. Achieving industrial implementation, the vision we have been pursuing for the last 9 years of the company's development, will ultimately firm up our credibility, enabling a spike in revenues not only in the timeframe of our 2023–2026 Strategy but also in the longer term” says Filip Granek, CEO of XTPL S.A.

“In the coming weeks, we are going to see several key business events in addition to the ongoing process of generating orders for DPS devices. One of the momentous events will be the official launch of our first overseas Demo Center in Boston, USA. It is one of the most important markets for modern technologies, and since the beginning of the year we have been markedly strengthening our presence there, including through the activities of our Managing Director for North America. The results of this expansion are already visible – out of 4 DPS devices ordered in recent weeks, 3 have been ordered by buyers from the North America (all industrial clients). The brick-and-mortar center will have a laboratory equipped with our products, which will enable us to hold demonstrations for present and potential clients. The local branch and a team of American experts also open up the possibility for us to participate in R&D projects under the Chips Act and in new areas requiring increased confidentiality. We expect the center to break-even very soon” Filip Granek adds.

During the first three quarters of 2024, XTPL generated PLN 7.3 million in total revenues, including PLN 6.7 million in revenues from the sale of products and services, compared to PLN 10.8 million and PLN 9.2 million, respectively, in the same period last year. Grants account for the remaining portion of the revenue figure. In September this year, the Company launched an international project under the Horizon Europe program. The total project value is EUR 7.0 million with EUR 0.5 million allocated to XTPL. The project implementation period is 48 months. After the first three quarters of 2024, EBITDA is PLN -14.5 million, an effect of the Company's investment process related to the implementation of the Strategy for 2023–2026. At the end of September 2024, the cash position is PLN 4.8 million.

The adopted 2023-2026 Strategy is aimed at scaling up the XTPL business to achieve PLN 100 million in commercial sales in 2026 on the back of an investment plan totalling PLN 60 million in three key business areas: sales, production and R&D. The first, intensive stage of the investment process is currently being finalized, and was funded by PLN 36.6 million gross raised in the public offer completed last year. As a result of the investments, the Company has increased the number and level of advancement of its key industrial projects and set up an international business development team and significantly increased its activity at international industry conferences, and at present is completing processes related to the launch of its Demo Center in Boston, USA, Production capacity has been increased to handle the expected volume orders, along with a significant reduction in the delivery time of DPS devices to clients from several months to several weeks. XTPL is also engaged in advanced R&D aimed at maintaining the competitiveness of its solutions and developing new products, including the new DPS+ business line. Employment has doubled and the current structure is adapted to achieve commercial sales exceeding the target of PLN 100 million in 2026.

In October this year, the Management Board decided to secure funds of PLN 28-31 million gross through the issue of 300 thousand ordinary bearer shares to investors who meet the requirements specified in the issue resolution included in the agenda of the Extraordinary General Meeting to be held on November 18 this year. The proceeds will strengthen further initiatives in the area of sales, production and R&D.

“The decision to recommend raising additional funds through the issue of ordinary bearer shares to increase the Company’s share capital comes in the wake of our active search for debt financing options in recent quarters, both from commercial banks and from more mission-oriented organizations such as EIB or PFR (Polish Development Fund). The talks we’ve held have led us to believe that it is too early to seek financing from these sources at the expected scale and optimal cost. It should be emphasized that we have fully achieved the goals and objectives of the first stage of our PLN 60 million worth of investment process planned for 2023–2026, and the commencement and implementation of the second stage of this process will significantly scale up XTPL in terms of organization, business and finance, benefitting our investors” says Jacek Olszański, CFO of XTPL.

“At the end of September this year, our inventory level was PLN 5.0 million, providing for potential sales of PLN 12.0 million that we expect to generate in the coming quarters. The investments we’ve made significantly support the anticipated sales of our products and will contribute to our results and current cash flow as orders increase. We’re developing a deep tech company in an industry marked by a long process of technology development, maturation and time before the placement of first orders. Significantly, we’ve already reached these milestones. We passed the test proving the effectiveness of our technology and, most importantly, its high commercial potential. We firmly believe that our goal – the first industrial implementation – is within our reach and that it will be a significant milestone on the path of our future growth” Jacek Olszański adds.

XTPL’s business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoinks). The company has nine projects aimed at industrial implementation of its technology, which are at least in the second stage of that process. Most advanced are four projects covering areas the Company considers strategic: semiconductors and displays. The total potential of those nine industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues. The Company’s end customers are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world’s largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.