Press release, November 19, 2024

XTPL's Demo Center in Boston officially opens and is expected to break even by the end of 2024

In line with its Strategy, XTPL (WSE:XTP) launched its first foreign Demo Center in Boston, USA – one of the most important markets for modern technologies. The facility is located in a technology incubator that attracts innovators and technology corporations seeking new solutions. The Boston metropolitan area alone is home to over 40 higher education institutions, including the most prestigious ones such as: MIT, Harvard, Cambridge or Northeastern University – the latter has had its own Delta Printing System (DPS) from XTPL since December 2023. The Boston center is part of XTPL Inc., 100% owned subsidiary of XTPL S.A. Its Managing Director is Urs Berger, who has been actively conducting sales activities in North America since January this year. In 2024 alone, XTPL has already delivered 5 DPS devices to the North American market, including 4 to industrial buyers. This means that the Boston facility may break even by the end of this year and contribute positively to the XTPL Group’s results as of 2025. The first foreign Demo Center is part of XTPL’s Strategy for 2023-2026 focused on a 10-fold increase in business to PLN 100 million in revenues from the sale of products and services in 2026.

“Boston is widely considered a US innovation hot spot, steadily attracting major investors and leading players from the largest and fastest-growing industries, including semiconductors, defence, medtech and space technologies. Having a local office here with a team of American passport holders significantly expands the range of possibilities related to the use of our groundbreaking UPD technology in new areas and application fields previously unavailable to XTPL, especially those requiring the highest level of confidentiality and restricted access to information. It should be noted that we’ve been vigorously increasing our presence in the American market since the beginning of the year. We hired a world-class General Manager and delivered 5 DPS devices. And now we are making process on a project focused on industrial implementation with a direct partner: a Nasdaq 100-listed top manufacturer of industrial machines from the United States. As a result, we expect the center to break even already in the first year of its operation, as it was unofficially started in January this year” says Filip Granek, CEO of XTPL S.A.

“The Demo Center solidly roots XTPL in the tech ecosystem thriving in and around Boston. In the eyes of many potential clients, we are now becoming an American entity. In our industry, this significantly facilitates business talks, helps in the formalization of contracts and the closing of transactions, the key phase from the perspective of investors. We want XTPL to be perceived as a global business from Wrocław, with branches in the most important markets for additive technologies and with a legal model adapted to the local conditions. At the current stage of the Company's development, we need to be seen as an international player. At the same time, we remain proud of our Polish origin” Filip Granek adds.

Over the last 2 years, XTPL has completed a total of 7 deliveries of DPS devices to buyers from the US and Canada, most of them being industrial clients. In terms of projects aimed at industrial implementation, on May 26, 2023, XTPL announced the successful completion of the evaluation process of its technology and the transition to the 4th stage of the process – delivery of a printing module to build an industrial prototype of the device for further testing. As at November 18, the tests are being continued. The Company's direct partner is a US-based global company listed on Nasdaq 100 with annual revenues ranging from several to more than ten billion USD, one of the largest manufacturers of industrial machines for makers of advanced electronics in the USA and in the world.

The Boston Demo Center will be equipped with the Company's products and the necessary laboratory infrastructure to conduct demonstrations of XTPL technologies and solutions. The center’s team consists of Urs Berger, Managing Director hired in January this year, who previously held key management positions (for 16 years) at Optomec, an additive technology company, and an Application Engineer who is currently finalizing the process of getting up to speed with the XTPL technology and from the next year will be able to join Urs Berger in deploying the Company’s products at client sites in North America. The team members are US citizens, and the facility is part of XTPL Inc., which operates under the laws of the United States.

“There are several important tasks ahead of our Demo Center in Boston, and the facility is now ready to take them up. This is another medium to conduct active sales processes, enriched with the capability of demonstrating our products and technologies on site. The center also provides regular support to the existing customer base and ensures fast delivery of HPM (High-Performance Materials, nanoinks) in the US market. We are also paving the way for the possibility of participating in some R&D projects and grants under e.g. the Chips Act, and as a local partner we‘re already receiving the first invitations to work on interesting grant applications. In line with the Strategy, we sustain our vision to achieve PLN 100 million in commercial sales in 2026. At the same time, we will certainly consider the possibility of developing a project with large technology corporations that we would like to partner with as part of their value chain, or within the currently adopted internal R&D. The center will also be a natural place to continue many of the sales processes initiated during our presence at conferences and industry events taking place in the USA” says Jacek Olszański, CFO of XTPL.

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 (in 2025, the Company is also developing its DPS+ line of devices to address the niche between DPSs and modules for industrial implementation) and High Performance Materials (HPM, nanoinks). The Company has 9 projects at least at the second stage of processes aimed at industrial implementation of its technology (completed initial contact, identified customer needs, started technology evaluation and development by XTPL), including 4 projects at the most advanced stage, covering areas of strategic importance for the Company: semiconductors and displays. The total potential of those 9 industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues over their respective lives, depending on the specific nature of each project. The Company’s end clients 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.