24/01/22

Estimated sales of XTPL products and services reach PLN 2.07 million at the end of 2021

XTPL S.A. (WSE: XTP), a global supplier of breakthrough nanoprinting solutions for the world’s electronics market, presented estimated revenues from the sale of its products and services for the fourth quarter and 2021. According to those data, the estimated value of the Company’s commercial sales in the last quarter of this year amounted to nearly PLN 1,857 thousand compared to PLN 20 thousand in the same period last year. At the same time, in the whole of 2021, the estimated revenues from the sale of XTPL’s products and services were at PLN 2,070 thousand vs PLN 64 thousand in the previous year. The revenue growth was mainly driven by the commercialization of the Delta Printing System line and the several times higher number of orders for the conductive nanoinks developed and produced by the Company.

As stated in the published report, the main sources of financing of the Company’s operations last year, in addition to cash flows from the commercialization of two business lines, also included proceeds from public grants that XTPL uses in its R&D projects. In 2021, the Company obtained grants of PLN 4.42 million compared to PLN 2.23 million in 2020. As the Company has pointed out, in accordance with the rules for accounting for those grants, part of the proceeds will be included in the Company’s income statement for 2021, while the remainder will be recognized as deferred income. For this reason, the final share of public grants in the structure of sales revenues is subject to change.

The Company has also published information on the estimated cash balance at the end of the fourth quarter of 2021, which is PLN 4.4 million compared to PLN 4.81 million reported at the end of the third quarter of 2021.

“The fact that we have exceeded the level of PLN 2 million in revenues from the sale of products is a milestone for us as a producer and supplier of innovative technology. At the present stage of the Company’s development, this value is also significant in the financial aspect. This is also testament to the effectiveness of our growth path, which we intend to follow in the forthcoming quarters. Understandably, our ambitions and goals we set for ourselves are significantly greater than what is reflected in the reported revenues, but wish to emphasize the fundamental change in the dynamics of the commercialization processes for our breakthrough solutions.

We are confident about the financial aspect of our business, as the revenues from the sale and post-sale service of the Delta Printing System, execution of subsequent orders for inks, as well as the revenues received from the recently started partnership with Nano Dimension will secure our capital needs in the medium term,” says Jacek Olszański, Management Board Member and CFO of XTPL S.A.

XTPL COMMERCIALIZES ITS TECHNOLOGICAL SOLUTIONS

XTPL’s business model is based on three complementary, and at the same time independent business lines: the Delta Printing System prototyping devices, conductive metallic inks and the EPSILON printing module dedicated to the implementation of the Company’s technology on the industrial production lines of new generation global electronics manufacturers. In 2021, XTPL made a major commercial breakthrough as it multiplied the volume of commercialization of its ink and prototyping devices line launched at the end of 2020.

The Delta Printing System (DPS) is a device developed by the Company designed for rapid prototyping and testing, whose printing precision, based on the use of various types of high-viscosity inks, is unattainable by any other available technology. In 2021, the Company sold another four DPSs , increasing the total sales pool to five. XTPL emphasizes that the underlying idea behind the commercialization of this line was to select appropriate clients among academic units and research institutes.

“As we strive for industrial commercialization of our technology, we go down the paths that are not so obvious to everyone. For example, we have our solutions employed in development of new technologies carried out by outstanding scientists at prestigious and recognized scientific institutes. The breakthrough solutions adoption curve always starts with global innovators who are looking for technological enablers for the development of next generation products. That’s why it is so important to build the presence and credibility of our technological solutions in the global market of modern electronics manufacturing technologies.

At the same time, these actions are intended to give a significant boost to our revenue base and the Company value. The network of highly specialized distributors that we are currently building at present is a major commercialization channel. We are already working with four distributors in our key markets. With their market position and established business relationships, they effectively increase interest in our technology and products. For example, with the support from our British distributor, we finalized the sale of the Delta Printing System to the University of Glasgow. We are set to continue to expand our network of specialized distributors in international markets,” says Filip Granek, the CEO of XTPL.

According to market analyzes, the market of electronic prototyping devices is to see a CAGR of 31% in the years 2021–2031 (source: Transparency Market Research). Global annual sales of printers for R&D, rapid prototyping and small-lot production in the area of the broadly understood printed electronics sector amount to approx. 250–500 devices per annum, at a price of approx. EUR 50–500 thousand per device.

An equally positive outlook is reported for the market of conductive inks produced and sold by XTPL. Analysts from the research company Research and Markets (The Global Market for Conductive Inks to 2030) estimate that the annual revenues of the global conductive inks market were USD 2.5 billion in 2020. The analysis are of the opinion that the development of new materials and processes will contribute to the emergence of new market opportunities for producers and suppliers of conductive inks, especially in the flexible printed electronics industries. They expect that in the coming years silver- and copper-based nanoinks will dominate the market. At the same time, according to the data published in the Nano Silver Inks Market – Forecasts from 2019 to 2024 (Knowledge Sourcing Intelligence LLP), the estimated size of the market of conductive inks based on silver nanoparticles may reach USD 52.38 million in 2024 (18.83% CAGR in 2018–2024). The market is buoyed by the growing use of electronics in the rapid urbanization processes, miniaturization of electronic components, as well as by the possibility of reducing production costs while maintaining high electrical conductivity.

In 2021, XTPL completed 19 new orders (26 in total since the start of sales) for industrial and scientific clients from Europe, the USA and EMEA. The Company specializes in the production of silver-based nanoinks, but is currently also working on new formulations, including inks based on gold nanoparticles.

“Conductive inks produced by XTPL have already won acclaim from our clients, who renew their orders. As a result, the products under this business line have a steady and growing share in our revenues. Another important thing is that those buyers are both research institutes and global industrial producers. It should be pointed out that the development of this business line is owed to our dedication and belief that we can create a product with unique properties on a global scale. The work we’ve done so far is now paying off, as our clients are recommending our nanoinks to other market players. As a result, we also start to do business with key state administration institutions from selected countries,” says the CEO of XTPL.

PROMISING START TO THE NEW YEAR

At the beginning of January, XTPL roused investors with information about the start of cooperation with the Israeli company Nano Dimension Ltd., listed on NASDAQ, which is an industry leader in Additively Manufactured Electronics (AME)/3D-Printed Electronics (PE), and Micro Additive Manufacturing (Micro-AM). Under this collaboration, XTPL and Nano Dimension will focus on the development of new high conductivity and high performance nanoink for industrial applications in Nano Dimension’s products designed for PCB production.

Another important piece of information was the announced expansion of the international network of distributors of XTPL’s technological solutions to include the German company Merconics. The new distributor will promote the Company’s technology and products in selected European countries, including in Germany, France, Austria and Switzerland. This is the fourth distributor and the second European partner for the Company.

At the beginning of the year, XTPL extended the patent protection for its technological solutions to include Japan. The Company filed a patent application with the Japanese patent office at the end of March 2016. It is related to the Company’s method of forming lines less than 1 micrometer wide, using its proprietary ink with silver nanoparticles. Currently, XTPL has another 24 patent applications in its portfolio. The applications protect the Company’s intellectual property rights in their respective scopes as of the moment of their submission.

The XTPL technology is a response to the three megatrends in the production of modern electronics. The industry is currently strongly focused on further miniaturization of the size and weight of electronic devices, modifying their forms and properties, and moving towards an increased flexibility and three-dimensionality. The recent global trend is also environmental protection by efficient use of limited resources while reducing the production waste, which is enabled by additive technology. XTPL develops its proprietary innovative nanoprinting solutions that support those trends, offering them to global players in the rapidly growing printed electronics industry. In 2020, its value was USD 41.2 billion (+11.0% YoY), and in 2025 it is forecast to grow to USD 63.3 billion, while 2030 it is expected to reach even USD 74.1 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 9.0% in 2020–2025.