In 2019, XTPL reached further milestones in the commercialization of the nanoprinting technology
(summary of the Annual Report and significant events in 2019)
- Establishing relationships with global players from the high-tech industry (including i.a. BOE);
- R&D successes (including conductive lines printed with a width of merely 1.4 µm);
- Development of the international patent cloud (seven new patent applications filed);
- Operating costs kept stable, and talks about execution of the first commercial orders (nanoink sales) finalized in March 2020.
– 2019 turned out to be the period in which we reached important milestones in the commercialization of our ultra-precise nanoprinting method. Strengthening the cooperation with global high-tech industry leaders, successful printing of conductive lines with a width of merely 1.4 µm, development of the global patent cloud of XTPL solutions, debut on the Main Market of the Warsaw Stock Exchange, formation of a subsidiary in the United States, and preparation for starting the first commercial orders – finalized in March 2020 – these are the events we are really proud of – says Filip Granek, PhD, CEO of XTPL.
STRONG BUSINESS RELATIONS
In 2019, the Company signed two important agreements in the area of development and commercialization of its technology. The first document was the Memorandum of Understanding (MoU) signed with the Korean HPK – one of the main suppliers of open defect repair solutions for the LG Display group. The other was an agreement on evaluation of XTPL’s solution, signed with the Chinese BOE, the global display market giant. The aim of the project is to improve electrical conductivity for the latest generation of OLEDs and QLEDs. Moreover, already in 2020, XTPL entered into an agreement with the Chinese Suzhou Cowin Laser Technology Co Ltd – a supplier for the above-mentioned BOE, and CSOT, a major player in the FPD market. The agreement relates to implementation of the XTPL technology in the field of open defect repair in displays.
– The commercialization process in companies such as XTPL consists of at least several phases, with each of these potentially taking more than ten months. The agreements signed in 2019 and 2020 take us to the next levels of cooperation with individual partners. They provide for evaluation of the XTPL technology by the partners, or initiate the stage of adaptation of the technology to the specific requirements of the partner’s production process. Successful completion of the existing stages will open the door to negotiating the terms of future commercial contracts, ultimately based on the licensing of the XTPL method – the CEO of XTPL adds.
THE FIRST COMMERCIAL ORDERS
– In March 2020, we finalized talks with three partners from the display market in relation to the sale of the first batches of the XTPL nanoink. This is a landmark event in the history of our business, which at the same time marks the fulfilment of our announcements to generate the first sales revenues. These transactions unlock more commercial opportunities for us and give credibility to our business – Filip Granek says.
Developed by XTPL’s in-house R&D unit, nanoinks have special physicochemical properties which are interesting from the point of view of manufacturers of advanced electronics. They ensure very good parameters of the nanoprinting process, while maintaining its high precision. The inks are protected by international patent applications.
STABILIZATION OF COSTS, IN SPITE OF THE INCREASE IN THE SCALE OF ACTIVITIES
In 2019 XTPL S.A. recorded PLN 2.1 million of revenues (subsidies) and PLN 24.2 million of consolidated net loss (PLN 11.2 million, excluding the impact of the incentive program). Expenditures on R&D and general and administrative expenses over the last quarters have remained stable.
NEXT GLOBAL PATENT APPLICATIONS
– In the recent quarters, XTPL has been actively working on the development of its patent cloud. In 2019, we submitted seven international applications relating to the foundations of our technology. To date, 13 patent applications have been registered. The past year was very strong in terms of our R&D activity, closely related to the activity in the area of intellectual property. For example, the XTPL Team developed assumptions for the process of printing features with a distance of 2 μm, new series of inks with a high concentration of silver and copper nanoparticles, and the technology of printing on film for use in strain gauges – Filip Granek says.
The company’s CEO adds that intellectual property is a driver for the company’s value and its competitive advantages, and an enabler of new business relationships. Furthermore, the proper degree of intellectual property protection will position the firm well in negotiations about future commercial contracts, while ensuring security in the commercialization of its technology.
2019 GROWTH MOMENTUM TO BE MAINTAINED IN THE FOLLOWING QUARTERS
The CEO of XTPL points to the challenges in the macroeconomic environment posed by the spread of COVID-19. The decline in economic activity witnessed by the world’s largest economies over the last several weeks may lead to lower economic growth. The company is monitoring the situation on an ongoing basis, remaining in constant contact with its partners. Despite the obvious challenges, including logistic ones, the cooperation has been largely undisrupted, although some delays cannot be ruled out depending on how the global situation plays out. However, the XTPL business model is not based on operations in the sectors most exposed to the adverse impact of the epidemic and the global crisis.
– We are confident that the work done last year has strengthened the position of our business and its value on the technological maps of the giants of the advanced electronics market. In 2020, we are planning to maintain our momentum, which is best evidenced by such events as the implementation of the first nanoink sales contracts already in the first quarter of the year – Filip Granek adds.