FULLTEXT DEL 1 AV 1

Kvartalsrapport Q1 2024

Dokumentindex

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1
Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

Q1
PRECISE BIOMETRICS
INTERIM REPORT JAN-MAR 2024

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

times/second
all year round

Precise technology
is used
100K

Precise Biometrics (Precise) is a global pioneer in the field of biometric IT security solutions. The offering includes algorithm
products for fingerprint, facial and hand recognition, as well as end -customer products for biometric access (YOUNiQ
Access) and visitor management (YOUNiQ Visit). Our focus areas are biometric authentication for mobile phones, laptops,
security keys and smart locks, vehicle applications for in -car payment, driver authentication and personal settings/access –
as well as specialized systems for visitor management and physical biometric access control. Precise operates through two
main business areas, Digital Identity and Biometric Technologies, and operates from its offices in Lund (HQ) and Stockholm,
Sweden, Potsdam NY, USA, Seoul, South Korea, Taipei, Taiwan and Shanghai, China. The Precise share is listed on the Nasdaq
Stockholm (PREC). Find out more at www.precisebiometrics.com.

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
TABLE OF CONTENTS
Q1 2024 IN BRIEF ............................................................................................................................................................................. 4
PRESENTATION AND Q&A ........................................................................................................................................................... 5
CEO COMMENTS .............................................................................................................................................................................. 6
UPDATE FROM THE BUSINESS AREAS ..................................................................................................................................... 8
CUSTOMER OFFERING ................................................................................................................................................................. 11
NET SALES AND OPERATING PROFIT/LOSS ........................................................................................................................ 13
CONSOLIDATED INCOME STATEMENT, IN SUMMARY ................................................................................................. 16
CONSOLIDATED BALANCE SHEET, IN SUMMARY ............................................................................................................ 17
CONSOLIDATED CASH FLOW STATEMENT ......................................................................................................................... 18
CHANGE IN EQUITY (GROUP) ................................................................................................................................................... 19
NOTES ................................................................................................................................................................................................. 20
PARENT COMPANY INCOME STATEMENT, IN SUMMARY ........................................................................................... 23
PARENT COMPANY BALANCE SHEET, IN SUMMARY ..................................................................................................... 24
CONSOLIDATED KEY INDICATORS .......................................................................................................................................... 25
ALTERNATIVE CONSOLIDATED KEY INDICATORS ............................................................................................................. 26
ANALYSIS OF RESULTS ................................................................................................................................................................. 27
FINANCIAL GLOSSARY ............................................................................................................................................................... 28

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
Q1 2024 IN BRIEF
INCREASED REVENUE AND POSITIVE EBITDA

FIRST QUARTER
▪ Net sales totaled SEK 21.7 (19.2) million.
▪ EBITDA totaled SEK 3.1 (–0.6) million.
▪ The operating profit/loss for the quarter totaled SEK –2.8 (–6.9) million.
▪ Earnings for the period totaled SEK –3.0 (–6.9) million.
▪ Earnings per share totaled SEK –0.0 (–0.2).
▪ Cash flow from operations totaled SEK –2.8 (–5.3) million.
▪ Cash and cash equivalents totaled SEK 41.1 (34.4) million.
▪ ARR (Annual Recurring Revenue) at the end of the period was SEK 18.3 (17.3 million)
SIGNIFICANT EVENTS DURING THE QUARTER
▪ Signed commercial agreement with Korean sensor manufacturer LaserSemicon (formerly CanvasBio)
▪ Launched palm recognition – a new addition to the company’s product portfolio
▪ Showcased the biometric security solutions of the future at the Confederation of Swedish Enterprise’s
Företagardagarna 2024 event
▪ Strengthened position in Benelux through local sales team
SIGNIFICANT EVENTS AFTER THE QUARTER
▪ Extended partnership with Flowscape Technology and signed new customer agreement
▪ Demonstrated biometric recognition solutions at ISC West and Embedded World
FINANCIAL DATA AND KEY INDICATORS
Amounts in SEK thousands unless otherwise stated

See the Financial Glossary for definitions.

2024 2023 2023 Rolling
Amounts in SEK thousands unless otherwise stated Jan-Mar Jan-Mar Full-year 12 months
Net sales 21 684 19 150 75 069 77 603
Net sales growth, % 13,2% -32,4% -17,5% -5,2%
EBITDA 3 069 -625 -1 691 2 002
Gross margin, % 72,2% 64,8% 63,7% 65,8%
Operating profit/loss -2 826 -6 862 -26 458 -22 423
Operating margin, % -13,0% -35,8% -35,2% -28,9%
Cash flow from the operating activities -2 832 -5 810 -10 760 -7 781
Cash and cash equivalents 41 148 34 434 47 534 41 148
Annual Recurring Revenue* 18 317 17 274 18 307 18 317

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
PRESENTATION AND Q&A
Precise Biometrics has published a video in connection with today’s interim report, which includes an interview with CEO Joakim
Nydemark. The video is available on the Investor Relations page: https://precisebiometrics.com/sv/investerare/
The material in the video is designed to complement the report and provide additional depth and better understanding of the
stock market for the company’s business operations.
The company also invites you to a live Q&A that starts at 10:00 AM (CET) on May 14, 2024.
To take part in the Q&A session, access it via the interactive video player on the Investor Relations page here:
https://precisebiometrics.com/investors

Questions can be asked directly in the chat function in the interactive player or submitted in advance to
investor@precisebiometrics.com.

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6
Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

CEO COMMENTS
2024 has hit the ground running, characterized by
intensive customer -focused and marketing activities,
including attendance at most trade fairs in Europe and
the USA, the opening of a sales office in the Netherlands,
and new customer and partnership agreements.
I am pleased that the positive trend from Q4 continued
during Q1, with an increase in net sales to SEK 21.7 (19.2)
million and a noticeable improvement in the operating
profit before depreciation (EBITDA) to SEK 3.1 ( –0.6)
million. Had it not been for two slightly delayed customer
payments totaling SEK 11 million (the payments were
registered at the beginning of April), cash flow for the
quarter would also have been strong. With net sales
moving in the right direction and a positive profit before
depreciation, I have an optimistic view of the future.
In addition to a strong focus on customers and intensive
marketing within our two business areas, we have
continued to work on streamlining our processes in order
to further accelerate our progress towards profitable
growth. Precise Biometrics has consolid ated its world -
leading position in biometrics with several new partner
agreements and collaborations, and is in a stronger
position than ever. We now have a well -positioned,
diversified product portfolio focused on products
including ultrasound sensors, wh ich have both higher
growth and better margins than other types of sensors,
which bodes well for the future.
OUR BUSINESS AREAS AND OUR
BUSINESS
In our Digital Identity business area, where we offer visitor
and access systems with biometrics, we have boosted our
strength with additional sales resources in the USA through
our partners Genetec and Flowscape Technologies, resulting
in a significant in crease in our pipeline of potential new
customers. We have also opened a local sales office in
Amsterdam to target Benelux, and in due course other parts
of Europe. Safety and security are becoming increasingly
important, driving demand for biometric access systems such
as YOUNiQ Access in workplaces, public buildings and homes.
We are also seeing more secure, more efficient visitor systems
contributing to increased security and a better customer
experience, which we feel has increased demand for YOUNiQ
Visit.
The mobile market has started to show signs of growth,
especially when it comes to demand for more complex
ultrasound sensors and software solutions that meet
increased security requirements, which benefits our business
in the Biometric Technologies business area. Our positioning
with algorithms for the latest generation of fingerprint
sensors based on ultrasound continues to create good
conditions for growth in 2024 and beyond.
The launch of our latest product and modality for palm
recognition also strengthens our offering going forward, and
enables us to address even more customers, verticals, and
areas of application. Plam recognition is currently available as
a software algorithm product , but is also seamlessly
integrated into our products for access management
(YOUNiQ Access) and visitor management (YOUNiQ Visit) .
Adding palm recognition to the company’s biometric product
portfolio further enables biometric multi -factor
authentication (MFA), further increasing the level of security
and prov iding organizations with customizable
authentication and identification options tailored to their
specific needs and meeting various regulatory requirements.
NEW PARTNER AGREEMENTS
New partner agreements and extended partnerships are
naturally important components in the company’s journey of
growth, and there are two partnerships that I am particularly
proud of and would like to highlight. One is the extended
partnership with Flowscape Technology, a listed building
technology company. The agreement gives Flowscape the
right to sell YOUNiQ Visit globally and entails a significant
expansion of Precise Biometrics’ international selling power.
“We are delighted to further deepen our
collaboration with Precise, which is a leader
in its category. In our efforts to offer
innovative, high-quality solutions to our
customers in the area of Smart Office, this
type of high-tech system is an important
competitive advantage that strengthens our
offering to customers. The fact that we have
already signed an agreement with a customer
in the UK as a result of the collaboration is a
clear confirmation of this.”
Peter Reigo, CEO of Flowscape Technology

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
The second is the partnership with Infineon Technologies,
which has been further strengthened during the quarter. This
has included several joint marketing activities such as the
Consumer Electronics Show (CES) in the USA and Embedded
World in Germany. Dis cussions are also underway about
further deepening the collaboration in order to win more joint
business. There is a lot going on in the automotive industry
in general, where many new services in the vehicles of the
future will require payment and biometri c authentication.
Biometrics in the automotive industry is expected to grow by
more than 23% a year over the next five years, which creates
excellent opportunities for Precise Biometrics, as Infineon’s
only Premium partner in biometrics in the automotive vertical.
MARKET DEVELOPMENT
Safety and security are important values that Precise delivers
hundreds of thousands of times every single second when our
world-leading biometric technology makes the individual the
key to unlock doors, mobile phones, computers, and cars, or
to create secure authentication when making a payment.
There is no doubt that biometrics represents the way ahead
for personal identification and authentication in a number of
different areas. As a pure software company, we have the
opportunity to quickly adapt to mark et requirements, and
thus further strengthen our position in this future, as many of
our competitors who also build hardware do not have the
facility to make the switch as quickly.
You can rely on the entire Precise team working incredibly
hard to take the company to new heights. I am looking
forward to the continuation of 2024, as we, with increased
market presence, high -quality products, and more efficient
sales and delivery proces ses, will maintain a full focus on
creating both growth and profitability.
Joakim Nydemark
CEO

“My top three:
▪ Biometrics are more in demand than ever.
▪ Our focus on sales and cost savings has
paid off.
▪ The positive trend from Q4 is continuing,
and 2024 looks promising with
new customer projects and an
extended offering with palm
recognition.”

CEO Joakim Nydemark

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
UPDATE FROM THE BUSINESS AREAS
BIOMETRIC TECHNOLOGIES
Precise is experiencing increased interest in biometric
solutions, where increased security, multi -factor
authentication and a good user experience are driving factors.
Collaboration with important partners continues to be
deepened, and new partners are being added on an ongoing
basis, driving business in the right direction. Equally
important is the fact that the company is well positioned for
the future and the next generation of products, for example
with algorithms for ultrasound sensors and hand recognition.
THE AUTOMOTIVE INDUSTRY
The collaboration with Infineon Technologies is developing
well, and the first vehicles with the shared fingerprint solution
are expected to reach the market before the end of the year.
Interest in biometric authentication in vehicles is growing,
and one important reason for this is that in -vehicle payment
will become increasingly common and important. In addition,
vehicles are increasingly becoming a software product – SDV
(Software Defined Vehicle). SDV is a central concept and
means that the hardware is installed during the manufacture
of the vehicle, after which continuous updates of functions
are made by downloading new software. Vehicles are also
being fitted with more and more senso rs, which, combined
with new, stricter requirements for road safety and safety in
the vehicle, opens up new opportunities for authentication
and for Precise.

PALM RECOGNITION
During the quarter, Precise launched its latest modality, palm
recognition. This product is available both as algorithm
technology for sensor manufacturers and as an end-customer
product integrated into the access and visitor systems
YOUNiQ Access and YOUNiQ Visit. The benefits of palm
recognition include a clear intention when used, the fact that
the technology is touchless, and that it offers a simple user
experience. Examples of applications are payment and door
access. Precise palm recognition was presented to customers
for the first time at a security fair in the USA in April, where it
was extremely well received.
INCREASED SECURITY WITH
LIVENESS AND MFA
Liveness and fraud detection, where the Precise product
BioLive has a unique position on the market, are more
relevant than ever. When biometrics are used in systems with
a high level of security, there is also an increased need to
protect against fraud, for example in the form of impressions
of fingerprints or photos of faces. Biometrics generally has a
very high level of security, but with Precise BioLive, which is
optimized to detect false impressions and images, and to
verify that the biometric impressi on belongs to a living
individual, the very highest security demands in the world can
be met. In addition to increased security, BioLive also
contributes to a better and faster user experience.
Precise has also been investing resources in Multi Factor
Authentication (MFA) for some time now, which means that
more than one identification method is required for physical
or digital access. Precise has three modalities (face, hand and
finger) that, to gether with the company’s expertise and
technology, offer great opportunities in the field of MFA – an
area that is included in, among others, the EU’s new NIS2
regulations on cyber security.

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
MOBILE MARKET AND
ULTRASOUND SENSORS
After a period of lower volumes in mobile phones, the
number of mobile phones manufactured has now started to
rise again. Precise is well positioned in the mobile market,
with strong partners such as Qualcomm and EgisTech, but has
also created a strong and strategic position as one of the very
few suppliers in the world of fingerprint algorithms for
ultrasound sensors. The new generation of mobile screens
requires the more advanced ultrasound sensors to read the
fingerprint through the m obile screen, as ver y little light
passes through.
Together with its partners, Precise has an almost unique
opportunity to take new market shares, and there is also a
higher margin in the ultrasound sensors segment. There are
already products on the market with Precise’s ultrasound
algorithm, but with more of the new generation of displays,
demand will increase.

MORE VERTICALS
With a long history as a supplier to the mobile industry,
Precise is now continuing to expand its offering into new
verticals. The automotive industry, smart locks, security
tokens and laptops are all important segments. One concrete
example of this is Inf ineon, but the partnership agreement
with the Korean sensor manufacturer LaserSemicon (formerly
CanvasBio) is also exciting, with the first laptops with a shared
solution coming to market shortly.

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

DIGITAL IDENTITY
The current security situation strengthens Precise’s position
in the fields of both access and visitor systems, and the
business area is a hive of activity. The fourth quarter was the
best ever, while sales in the first quarter were slightly lower,
which was expected and normal for Q1. Sales are, however,
largely on track, and we see extremely high levels of interest
and potential going forward.
EXTENDED COLLABORATION WITH
FLOWSCAPE
Precise extended its collaboration with Flowscape through a
global partnership agreement covering all markets in which
they operate. This extended collaboration has already
resulted in one new customer – a large global consultancy
company.
MORE SALES RESOURCES AND
OPENING OF SALES OFFICE IN THE
NETHERLANDS
During the quarter, a sales office was opened in the
Netherlands, which will initially target the Benelux countries,
and in due course additional markets as well. The level of
interest and activity has been good, and the first customer
has already implemen ted a pilot project. Precise has also
boosted its strength with additional sales resources in the
USA, as well as further extending its collaboration with
existing partners such as Genetec.
NEW CUSTOMERS
In recent months, Precise has signed many new customers up
for YOUNiQ Visit, several of whom are large international
companies that are implementing YOUNiQ across the
majority of their offices. We are seeing a general increased
level of interest in YOUNiQ Visit, the main reasons for such
investment being stricter requirements for security, an
ambition to become more customer -friendly, and a need to
create more efficient administration.
PALM RECOGNITION
The new palm recognition modality is also being integrated
into YOUNiQ Access and Visit as a complement to facial and
QR codes. One major benefit of palm recognition is that the
hand movement indicates a clear intention. When YOUNiQ
Access with palm recognition was presented at one of the
world’s largest security fairs, ISC in Las Vegas, there was a
great deal of interest. The product is hardware -independent,
needing just a sufficiently good camera, but we are also
collaborating with hardware partners such as American
Hand.ID to create an optimal user experience.
“We are proud to be working with Precise, as
they are the global leader in premium
biometric technologies. Precise is the natural
choice for collaboration for our hand-held
reader unit, and their performance and
expertise in the field of biometrics has
impressed us a lot. Together, we are ready to
deliver solutions that take biometric
authentication to the next level.”
Ken Brownlee, CEO of Hand.ID

NEW RELEASES AND ROADMAP
New releases of both YOUNiQ products were launched
during the quarter, and there is a clear roadmap going
forward, which includes both new functionality and further
improved security and compatibility with different security
standards.
PERSONAL PRIVACY AND SECURITY
Both of these areas are important to us, and we work
continuously to both increase our customers’ security and at
the same time ensure customers’ personal privacy. We also
work to comply with the various industry standards and
regulations that are in place . More information about this
work is available at precisebiometrics.com.

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CUSTOMER OFFERING
In a society where security is becoming increasingly central,
Precise Biometrics helps to create increased peace of mind.
This is done by developing innovative technological solutions
in the field of biometric recognition, where simplicity and a
first-class user experience are combined with a very high level
of security because “YOU are the key”. Instead of using a PIN
code, password, key, card, etc. to authenticate yourself, you
use your finger, face, or palm.
There are areas of application in both digital and physical
access, and the applications can be found in, for example,
mobile phones, laptops, smart locks, security keys and
vehicles, and in visitor and access systems.
The offering consists of algorithm products, basic technology,
which component manufacturers use in their products, and
also end -customer products for access and visitor
management. The focus of all solutions is to combine high
security with a first -class user experience through
outstanding technology, based on AI and Deep Learning.
– YOU ARE THE KEY

WHY PRECISE?
▪ Unique knowledge, as biometrics has been
our core business for 25 years.
▪ Established on the global market, our
technology is used more than 100,000 times
per second, all year round.
▪ Large customer base and a global footprint in
the world of biometrics.
▪ Hardware-independent, handling several
different biometric modalities such as finger,
hand, and face.
▪ Public company
are
the key
ccess visitor management systems
Other embedded use cases
Smart locks
Security tokens
Laptops
obile phones
utomotive
are
the key

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
THE COMMERCIAL BENEFIT OF BIOMETRIC RECOGNITION
The commercial benefit of biometric recognition solutions
can be divided into internal company factors and external
environmental factors. The internal factors relate to areas
such as security, efficiency, user -friendliness, customer
service, compliance, and scalability, while the external factors
primarily concern the rapid development of technology and
AI, and the uncertain security situation.

OUR PRODUCTS

End-customer products for access and
visitor management
Algorithm products for biometric
recognition

▪ YOUNiQ Access is our access solution for
doors based on biometrics, such as facial
recognition.
▪ YOUNiQ Visit (EastCoast Visit in Sweden) is
our visitor management solution.

▪ BioMatch is our fingerprint matching product.
▪ BioLive is our product to prevent fraud using
false fingerprints.
▪ BioEnhance is our product for image
enhancement, e.g., regarding fingerprints
before matching.
ega acro icro
Trends
Scalability
Compliance
User Experience
educed isk of raud
Convenience
Security
are
the key

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13
Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

NET SALES AND OPERATING
PROFIT/LOSS
NET SALES FOR THE QUARTER
Net sales during the quarter increased to SEK 21.7 (19.2)
million, representing an increase of 13.2%, and net sales were
divided between royalty revenues of SEK 10.5 (4.1) million,
license fees (including support and maintenance) of SEK 9.8
(13.2) million and other revenues of SEK 1.4 (1.9) million.
Royalty revenues have been at a low level over the past two
years, but we are seeing an increase to a royalty level that we
have not seen since Q1 2022. License fees decreased
compared with the same period last year, mainly due to
changes in the composition of customers and renegotiated
license agreements. The reduction in Other is primarily expla-
ined by the fact that less hardware is sold in Digital Identity.

BIOMETRIC TECHNOLOGIES
Net sales for Biometric Technologies totaled SEK 16.7 (14.0)
million and are reported under royalties at SEK 10.5 (4.1)
million, licenses at SEK 5.3 (8.8) million, and Other at SEK 0.9
(1.1) million. After a period of low royalty levels towards the
end of 2022 and the first part of 2023, as a consequence of
low demand and low production volumes in the mobile
market, royalty levels increased during Q4 2023 and increased
further during Q1 2024. This increase is partly due to Precise
being correctly positioned in the area of new sensor
technologies such as ultrasound. License fees decreased
compared with the same period last year, mainly due to
changes in the composition of customers and renegotiated
license agreements. The gross margin during the quarter
totaled 85.3% (82.3). The increase in gross margin is primarily
due to higher sales. Royalty revenues are based on the
customers’ sales volumes, and increased royalty revenues
therefore have a positive impact on margins as they do not
entail any extra costs for Precise.
DIGITAL IDENTITY
Net sales for Digital Identity totaled SEK 5.0 (5.1) million and
are reported under licenses at SEK 4.5 (4.3) million, and other
at SEK 0.5 (0.8) million. The proportion of recurring revenues
(Annual Recurring Revenue, ARR) increased, while revenues
of a non-recurring nature decreased. The ARR at the end of
the quarter was SEK 18.3 (17.3) million.
The gross margin during the quarter totaled 28.7% (16.9). The
higher gross margin is mainly due to a lower proportion of
hardware sales, where the margin is lower. The margin in Q1
2023 was also very low due to non -recurring costs in
connection with the integration of EastCoast.
EARNINGS FOR THE QUARTER
The gross margin during the quarter totaled 72.2% (64.8). The
increase is primarily caused by increased sales and a changed
product mix, as sales in Biometric Technologies increased and
this product segment has higher margins. Total amortization
of capitalized development expenses was SEK 4.3 (4.5) million.
Amortization of acquired intangible assets totaled SEK 0.6
(0.6) million.

Operating expenses for the quarter fell slightly to SEK 18.5
(19.3) million due to a strong focus on cost control. The
profit/loss at EBITDA level improved to SEK 3.1 (–0.6) million.
The improved EBITDA is primarily attributable to higher net
sales combined with lower operating expenses.
The operating profit/loss for the quarter totaled SEK –2.8 (–
6.9) million. Earnings for the quarter totaled SEK –3.0 (–6.9)
million. Total depreciation/amortization totaled SEK 5.9 (6.2)
million. Earnings per share (average number of shares) for the
quarter totaled SEK –0.0 (–0.2).

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Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
NET FINANCIAL ITEMS & TAX
Net financial items for the quarter totaled SEK –0.2 ( –0.2)
million and the tax expense totaled SEK 0.1 (0.1) million. Net
financial items are attributable to exchange rate differences
in cash and cash equivalents, interest income, interest on the
lease liability in accordance with IFRS 16, as well as interest
expense on the deferred fixed purchase price related to the
acquisition of EastCoast.

CASH FLOW & INVESTMENTS
The cash flow for the quarter from operating activities totaled
SEK –2.8 ( –5.8) million, of which SEK –5.8 ( –5.1) million is
attributable to changes in working capital caused by
increased accounts receivable. Working capital accumulation
was negatively impacted by delayed payments from two large
customers of SEK 11 million, which were paid during the first
week of Q2. During the quarter, the Group invested SEK 0.o
(0.0) million in intangible assets. Total cash flow for the
quarter was SEK –6.5 (–12.0) million.
CAPITALIZATION &
AMORTIZATION OF
DEVELOPMENT WORK
Development expenses of SEK 3.0 (5.2) million were
capitalized during the quarter, and amortization of capitalized
development expenses in respect of Digital Identity and
Biometric Technologies totaled SEK 4.3 (4.5) million.
FINANCIAL POSITION AND
LIQUIDITY
Cash and cash equivalents at the end of the period totaled
SEK 41.1 (34.4) million. Total equity at the end of the period
totaled SEK 156.5 (138.9) million, and equity per share was
SEK 2.0 (2.9).
THE PARENT COMPANY
The parent company's net sales for the quarter totaled SEK
17.7 (14.2) million. The operating profit/loss for the quarter
totaled SEK –3.1 ( –7.8) million and was affected by
amortization of goodwill totaling SEK 0.6 (0.6) million. Cash
and cash equivalents at the end of the interim period totaled
SEK 26.7 (22.6) million, and equity SEK 146.1 (129.1) million.
ORGANIZATION AND STAFF
The organization consists of the head office in Lund, Sweden,
and offices in Stockholm, Sweden, Potsdam, USA, and
Shanghai, China. At the end of the quarter, the Group had a
workforce of 43 (50) people, including on -site consultants.
The number of employees was 32 (32), of which 24 (26) were
located in Sweden. Precise works in an agile way together
with several partners, creating a fast -moving, scalable
organization. The number of employees does not include
partners.
FINANCIAL CALENDAR
Annual General Meeting 2024 in Lund – May 22, 2024
Q2 Interim Report 2024 – August 16, 2024
Q3 Interim Report 2024 – November 15, 2024
RISK FACTORS
The Group and parent company’s business risks and risk
management as well as the management of financial risks are
described in detail in the Annual Report for 2023, which was
issued in April 2024. There have been no incidents of
significant importance since then that would affect or change
these descriptions of the Group or parent company’s risks and
how they are managed.
OWNERSHIP STRUCTURE
Precise Biometrics AB (publ), corporate ID number 556545 -
6596, is the parent company in the Precise Biometrics Group.
Precise Biometrics B’s shares are listed on the Small Cap list
of the Nasdaq OMX Nordic. The number of shareholders at
the end of the qua rter was 16,270 (17,189), of which the
proportion of foreign shareholders is 14.7%. 13,305,644 PREC
shares were traded during the quarter. The closing price on
March 28 was SEK 1.11, and during the quarter the share price
fluctuated between SEK 0.80 and SEK 1.17.

===== SIDA 15 =====

15
Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

This interim report has not been audited by the company’s auditors.

The undersigned certifies that the interim report provides a true and fair view of the parent company and Group’s operations,
financial position and financial results, and describes the significant risks and uncertainty factors faced by the parent com pany and
the companies that belong to the Group.

Lund, May 14, 2024

Torgny Hellström
Chairman of the Board

Jimmy Hsu Mats Lindoff Maria Rydén Åsa Schwarz Peter Gullander
Board member Board member Board member Board member Board member

Joakim Nydemark
CEO

For further information, please contact:
Joakim Nydemark, CEO
Email: joakim.nydemark@precisebiometrics.com

This information is information that Precise Biometrics AB is obligated to disclose pursuant to the EU Market Abuse Regulation.
The information was submitted for publication on May 14, 2024 at 08:00 AM (CET).

===== SIDA 16 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CONSOLIDATED INCOME STATEMENT,
IN SUMMARY

*Dilution effects are only considered in the event that the earnings per share become worse. Dilution effects have not been
considered, as the average price is below the price in current option programs.

2024 2023 2023 Rolling
Amounts in SEK thousand Note Jan-Mar Jan-Mar Full year 12 months
Net sales 2,3 21 684 19 150 75 069 77 603
Cost of goods sold -6 027 -6 741 -27 246 -26 532
Gross profit 15 657 12 409 47 823 51 071
Marketing and sales expenses -8 484 -6 806 -27 420 -29 098
Administrative expenses -3 850 -3 516 -14 150 -14 484
R&D expenses -6 808 -8 911 -32 105 -30 002
Other operating income/expenses 658 -39 -606 91
-18 483 -19 271 -74 281 -73 493
Operating profit/loss -2 826 -6 862 -26 458 -22 423
Finacial income/expenses 4 -229 -166 -291 -354
Profit/Loss before tax -3 055 -7 028 -26 749 -22 776
Tax 86 87 346 345
Profit/loss for the period attributable to parent company
shareholders -2 969 -6 941 -26 403 -22 431
Earnings per share, remaining operations, SEK*
- before dilution -0,04 -0,15 -0,34 -0,23
- after dilution -0,04 -0,15 -0,34 -0,23
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit/Loss for the period -2 969 -6 941 -26 403 -22 431
Other comprehensive income:
Items that may be reclassified to profit or loss
Changes in accumulated exchange rate differences 158 -13 -127 44
Other comprehensive income for the period 158 -13 -127 44
Profit/Loss total attributable to holders of participations in the
parent company -2 811 -6 954 -26 530 -22 387

===== SIDA 17 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CONSOLIDATED BALANCE SHEET,
IN SUMMARY

Amounts in SEK thousand
2024 2023 2023
ASSETS Note March March December
FIXED ASSETS
Material assets 11 312 8 700 6 447
Goodwill and immaterial assets 130 804 138 931 132 751
TOTAL FIXED ASSETS 142 116 147 631 139 198
CURRENT ASSETS
Inventories 292 311 359
Accounts receivable 26 845 16 355 19 173
Other current receivabels 3 016 3 400 3 499
Accruals and deferred income 3 056 2 620 2 903
Cash and cash equivalents 4,6 41 148 34 434 47 534
TOTAL CURRENT ASSETS 74 357 57 120 73 467
TOTAL ASSETS 216 473 204 751 212 665
EQUITY AND LIABILITIES
EQUITY
Equity 156 509 138 925 159 319
TOTAL EQUITY ATTRIBUTABLE TO PARENT
COMPANY SHAREHOLDERS 156 509 138 925 159 319
LONG-TERM DEBT
Long term debt 6 22 614 25 237 17 460
TOTAL LONG-TERM DEBT 22 614 25 237 17 460
SHORT-TERM LIABILITIES
Short-term liabilities 4,6 37 350 40 589 35 886
Total Short-term liabilities 37 350 40 589 35 886
TOTAL EQUITY AND LIABILITIES 216 473 204 751 212 665

===== SIDA 18 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CONSOLIDATED CASH FLOW STATEMENT

1) The balance sheet item Cash & Cash Equivalents only includes bank balances at both the beginning and end of the period.

2024 2023 2023 Rullande
Amounts in SEK thousand Note Jan-Mar Jan-Mar Full year 12 months
Cash flow from operating activities
Operating profit/loss -2 826 -6 862 -26 458 -22 422
Adjustments for items not included in cash flow 6 011 6 241 24 843 24 613
Interest payments, net -229 -44 386 201
Tax paid -7 -4 -9 -12
Cash flow from operating activities 2 949 -669 -1 238 2 380
before changes in working capital
Cash flow from changes in working capital
Change in inventories 66 0 -48 18
Change in current receivables -7 306 -3 868 -7 083 -10 521
Change in current liabilities 1 459 -1 273 -2 392 341
-5 781 -5 141 -9 522 -10 162
Cash flow from operating activities -2 832 -5 810 -10 760 -7 781
Acquisition of subsidiaries 6 0 0 -10 000 -10 000
Investment in fixed assets 31 -17 -1 215 -1 167
Investment in intangible assets -3 055 -5 191 -14 101 -11 965
Cash flow from investing activities -3 024 -5 208 -25 316 -23 132
New share issue 0 0 49 523 49 523
Commission expenses 0 -423 -9 979 -9 556
Repurchase of own shares -1 0 0 -1
Payment for sale/buy-back of options 0 0 0 0
Payment of lease liability -622 -529 -2 258 -2 351
Cash flow from financing activities -623 -952 37 287 37 616
Total Cash flow -6 478 -11 969 1 211 6 703
Cash & cash equivalents at beginning of year 47 534 46 405 46 405 34 434
Exchange rate differences in cash & cash equivalents 91 -2 -83 10
Cash & cash equivalents at end of period 1) 41 148 34 434 47 534 41 148

===== SIDA 19 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CHANGE IN EQUITY (GROUP)

Amounts in SEK thousand 2024 2023 2023 Rolling
Note Jan-Mar Jan-Mar Full year 12 months
Equity at start of period 159 319 146 302 146 302 138 925
Comprehensive income
Profit/loss for the period -2 969 -6 941 -26 403 -22 431
Other comprehensive income
Exchange differences 158 -13 -127 44
Total other comprehensive income 158 -13 -127 44
Total comprehensive income -2 811 -6 954 -26 530 -22 387
Transactions with shareholders
Stockoptions 5 0 0 0 0
LTI programme 5 1 0 3 4
Repurchase of own shares 5 0 0 0 0
New share issue 0 0 49 523 49 523
New issue cost 0 -423 -9 979 -9 556
Total transactions with shareholders 1 -423 39 547 39 971
Equity end of period 156 509 138 925 159 319 156 509

===== SIDA 20 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
NOTES
NOTE 1 – ACCOUNTING POLICIES
This interim report has been prepared in accordance with I S 34 Interim inancial eporting. The parent company’s financial
statements have been prepared in accordance with the Swedish nnual ccounts ct and the Swedish nnual eporting Board’s
recommendation RFR 2, Accounting for Legal Entities. The recognition and measurement policies and bases of estimates applied
in the Annual Report for 2023 report have also been used in this interim report.

NOTE 2 – REVENUE ALLOCATION

* Sale at a certain time means that revenue is recognized point-in-time at the start of the agreement period, when control has
been transferred to the customer.
** Sales over time means that revenue is accrued on a straight-line basis over the term of the agreement.

2024 2023 2023 Rolling
Amounts in SEK thousand Jan-Mar Jan-Mar Helår 12 months
Segment
Biometric Technologies (fd Algo)
Royalty 10 488 4 085 17 654 24 057
Licenses, incl. support & maintenance 5 281 8 838 31 500 27 943
Other 911 1 103 3 658 3 466
Digital Identity
Licenses, incl. support & maintenance 4 515 4 329 18 308 18 493
Other 489 795 3 949 3 643
Total 21 684 19 150 75 069 77 603
Timing of revenue recognition
At point in time* 1 396 1 965 7 740 7 170
Over time** 20 288 17 185 67 329 70 433
Total 21 684 19 150 75 069 77 603
Region/Country
Europe 5 824 7 237 29 054 27 641
- w hereof Sw eden 4 819 5 393 20 982 20 408
Asia 8 125 8 406 31 205 30 924
- w hereof China 361 1 320 3 152 2 194
- w hereof Taiw an 6 871 6 067 25 224 26 028
USA 7 735 3 520 14 811 19 025
Total 21 684 19 150 75 069 77 603

===== SIDA 21 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
NOTE 3 – SEGMENT REPORTING

Amounts in SEK thousand
Biometric
Technologies Digital Identity Total Segment Biometric
Technologies Digital Identity Total Segment
Net sales 16 680 5 004 21 684 14 026 5 124 19 150
Cost of goods sold -2 459 -3 569 -6 027 -2 484 -4 257 -6 741
Gross profit 14 221 1 435 15 657 11 542 867 12 409
Biometric
Technologies Digital Identity Total Segment Biometric
Technologies Digital Identity Total Segment
Net sales 52 812 22 258 75 069 55 466 22 137 77 603
Cost of goods sold -10 171 -17 075 -27 246 -10 146 -16 387 -26 533
Gross profit 42 641 5 182 47 823 45 320 5 750 51 071
Other information
2024 2023 2023 Rullande
Reconciliation profit/Loss Jan-Mar Jan-Mar Full year 12 months
Segment profit/Loss 15 657 12 409 47 823 51 071
Marketing and sales expenses -8 484 -6 806 -27 420 -29 098
Administrative expenses -3 850 -3 516 -14 150 -14 484
R&D expenses -6 808 -8 911 -32 105 -30 002
Other operating income/expenses 658 -39 -606 91
Finacial income/expenses -229 -166 -291 -354
Profit/Loss before tax -3 055 -7 028 -26 749 -22 776
Only net sales and product costs are allocated to each segment. Other costs are not allocated at segment level as these items relate to group
operations
Jan-Mar
2024 2023
jan-mar
2023 Rolling
Full-year 12 months

===== SIDA 22 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
NOTE 4 – FINANCIAL INSTRUMENTS
The fair value in respect of financial assets and liabilities corresponds in all material respects with the carrying amount in the
balance sheet.

INTEREST-BEARING LIABILITIES
As of November 30, 2021, the Group acquired 100% of the shares in EastCoast Solutions AB and Besökssystem Sverige AB.

The purchase price totaled SEK 86,203,000, of which SEK 24,466,000 was paid as at 31 December 2021, partly via a cash payment
of SEK 18,000,000 and partly via the issuing of new shares totaling SEK 6,466,000. An additional SEK 8,268 thousand was paid in
cash in January 2022.

On November 30, 2022, a supplementary agreement was signed that changed the terms and conditions for the remaining liability
of SEK 55,000 thousand for the acquisition of EastCoast Solutions AB. On December 1, 2022, SEK 30,000 thousand was paid and on
November 30, 2023, SEK 10,000 thousand was paid.

SEK 5,000 thousand will be paid on November 30, 2024, SEK 5,000 thousand on November 30, 2025, and SEK 5,000 thousand on
November 30, 2026. Interest will be added to the amounts of SEK 5,000 thousand due on November 30, 2025 and SEK 5,000
thousand due on November 30, 2026. The interest, of 3 months STIBOR + 8%, is added from November 30, 2023 until the
amounts have been paid. The liability is recognized as an interest-bearing liability as of March 31, 2024.

The liability has been calculated at current value at the original effective interest rate of 1.8% and is recognized as other current
liabilities (SEK 6,128 thousand) and other non-current liabilities (SEK 11,351 thousand). The effect on earnings of the translation of
the liability was estimated at SEK 2,112 thousand and was reported under financial items as other financial expenses during 2023.
Precise has the option to pay off the entire remaining purchase price early without incurring any interest expenses.

IMPACT ON CASH AND CASH EQUIVALENTS IN 2024 (REPORTED IN INVESTING ACTIVITIES):
There is no impact on the Group’s cash and cash equivalents during Q1 2024.

NOTE 5 – LTI PROGRAM
The nnual General eeting 2022 resolved, in accordance with the Board’s proposal, to establish a long-term share bonus
program (LTI 2022/2028) for all employees in Precise Biometrics. In order to facilitate the implementation of LTI 2022/2028 and to
ensure the delivery of shares to the participants, and to cover the company’s costs for social security contributions, the meeting
also decided to amend the Articles of Association in the form of the introduction of new Class C shares, authorization for the
Board of Directors to issue Class C shares, authorization for the Board of Directors to buy back Class C shares, and approval of the
transfer of shares to participants in LTI 2022/2028. The implementation of Class C shares took place in Q4 2022. As of March 31,
2024, Precise Biometrics held 1,085,000 Class C shares.

===== SIDA 23 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
PARENT COMPANY INCOME STATEMENT,
IN SUMMARY

2024 2023 2023 Rolling
Amounts in SEK thousand Note Jan-Mar Jan-Mar Full year 12 mån
Net sales 1 17 710 14 177 53 787 57 320
Cost of goods sold -8 214 -8 450 -32 709 -32 473
Gross profit 9 496 5 727 21 078 24 848
Marketing and sales expenses -5 684 -4 891 -18 552 -19 345
Administrative expenses -3 727 -3 269 -13 203 -13 661
R&D expenses -3 803 -5 271 -19 813 -18 345
Other operating income/expenses 655 -85 -626 114
-12 559 -13 516 -52 194 -51 237
Operating profit/loss -3 063 -7 789 -31 116 -26 390
Financial income/expenses -140 -103 -109 -146
Group contributions received 0 0 3 487 3 488
Profit/loss before tax -3 202 -7 892 -27 738 -23 048
Tax 0 0 0 0
Profit/loss for the period -3 202 -7 892 -27 738 -23 048

===== SIDA 24 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
PARENT COMPANY BALANCE SHEET,
IN SUMMARY

Amounts in SEK thousand
2023 2022 2023
ASSETS Note March March December
Fixed assets
Fixed assets 1 776 2 510 2 056
Immaterial assets 29 282 39 126 31 630
Deferred tax assets 90 558 90 558 90 558
TOTAL FIXED ASSETS 121 616 132 194 124 244
CURRENT ASSETS
Inventories 64 311 64
Accounts receivable 24 467 12 667 13 704
Accounts receivable Group 2 074 844 1 076
Other receivables 11 656 8 795 12 162
Accruals and deferred income 2 635 2 214 2 488
Cash and cash equivalents 26 655 22 613 35 618
TOTAL CURRENT ASSETS 67 551 47 444 65 112
TOTAL ASSETS 189 167 179 638 189 356
EQUITY AND LIABILITIES
Restricted Equity
Share capital 23 539 14 254 23 539
Paid-in unregistered share capital 0 0 0
Statutory reserve 1 445 1 445 1 445
Reserve for development expenses 20 002 26 672 21 556
Total restricted equity 44 986 42 370 46 540
Unrestricted Equity
Share premium reserve 168 316 137 635 168 316
Retained earnings -64 033 -42 965 -37 849
Profit/loss for the year -3 203 -7 892 -27 738
Total non-restricted equity 101 081 86 777 102 729
Total Equity 146 066 129 147 149 269
LONG-TERM DEBT
Long term debt 11 351 16 866 11 302
TOTAL LONG-TERM DEBT 11 351 16 866 11 302
SHORT-TERM LIABILITIES
Short-term liabilities 31 750 33 625 28 785
Total Short-term liabilities 31 750 33 625 28 785
TOTAL EQUITY AND LIABILITIES 189 167 179 638 189 356

===== SIDA 25 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
CONSOLIDATED KEY INDICATORS

* The key indicator is calculated excluding current liabilities to RM International.

2024 2023 2023 Rolling
Amounts in SEK thousands unless otherwise stated Jan-Mar Jan-Mar Full-year 12 months
Net sales 21 684 19 150 75 069 77 603
Net sales growth, % 13,2% -32,4% -17,5% -5,2%
Gross margin, % 72,2% 64,8% 63,7% 65,8%
EBITDA 3 069 -625 -1 691 2 002
Operating profit/loss -2 826 -6 862 -26 458 -22 423
Working capital * 43 135 26 410 43 683 43 135
Capital employed 173 988 138 925 176 724 173 988
Liquidity ratio, % 198,3% 140% 203,7% 198%
Equity/assets ratio, % 72,3% 67,9% 74,9% 72,3%
Earnings per share before dilution, SEK -0,04 -0,15 -0,34 -0,23
Earnings per share after dilution, SEK -0,04 -0,15 -0,34 -0,23
Equity per share, SEK 1,99 2,92 2,03 1,99
Number of shares (thousands) 78 464 47 513 78 464 78 464
Weighted avg. number of shares, adjusted for dilution effect
(thousands) 78 464 47 513 65 568 73 306
Number of employees at the end of the period 32 32 31 32
Average number of employees during the period 31 31 30 31
Annual Recurring Revenue 18 317 17 274 18 307 18 317

===== SIDA 26 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
ALTERNATIVE CONSOLIDATED KEY
INDICATORS

Amounts in SEK thousands 2024 2023 2023 Rolling
unless otherwise stated Jan-Mar Jan-Mar Full-year 12 months
Net sales 21 684 19 150 75 069 77 603
Net sales growth, % 13,2% -32,4% -17,5% -5,2%
Gross profit 15 657 12 409 47 823 51 071
Net sales 21 684 19 150 75 069 77 603
Gross margin, % 72,2% 64,8% 63,7% 65,8%
Operating profit/loss -2 826 -6 862 -26 458 -22 423
Net sales 21 684 19 150 75 069 77 603
Operating margin, % -13,0% -35,8% -35,2% -28,9%
EBITDA 3 069 -625 -1 691 2 002
Depreciation and amortization -5 895 -6 237 -24 767 -24 425
Operating profit/loss -2 826 -6 862 -26 458 -22 423
Current assets 74 357 57 120 73 467 90 704
Current liabilities excl. current liabilities EastCoast
International* 31 222 30 710 29 784 30 296
Working capital 43 135 26 410 43 683 60 408
Sales expenses -8 484 -6 806 -27 420 -29 098
Administrative expenses -3 850 -3 516 -14 150 -14 484
R&D expenses -6 808 -8 911 -32 105 -30 002
Other operating income/expenses 658 -39 -606 91
Total operating expenses -18 483 -19 271 -74 281 -73 493
Cost of goods and services sold -6 027 -6 741 -27 246 -26 532
Depreciation Cost of goods sold 4 744 5 035 20 244 19 952
Cost of goods and services sold excluding
depreciation -1 283 -1 706 -7 002 -6 580
Operating expenses -18 483 -19 271 -74 281 -73 493
Depreciation Operating expenses 1 152 1 202 4 523 4 473
Operating costs excluding depreciation -17 331 -18 069 -69 758 -80 823
Balance sheet total 216 473 204 751 212 665 216 473
Non-interest-bearing liabilities 42 485 65 826 35 941 42 485
Capital employed 173 988 138 925 176 724 173 988
Closing equity 156 509 138 925 159 319 156 509
Average equity 163 176 140 939 158 780 163 176
Current assets minus inventories 74 065 56 809 73 109 74 065
Current liabilities 37 350 40 589 35 886 37 350
Liquidity ratio, % 198% 140% 204% 198%
Equity 156 509 138 925 159 319 156 509
Total assets 216 473 204 751 212 665 216 473
Equity/assets ratio, % 72,3% 67,9% 74,9% 72,3%

===== SIDA 27 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

ANALYSIS OF RESULTS

2024 2023 2023 Rullande
Amounts in SEK thousand Note Jan-Mar Jan-Mar Full year 12 months
Net sales 2,3 21 684 19 150 75 069 77 603
Cost of goods and services sold excluding depreciation -1 284 -1 706 -7 003 -6 581
Operating costs excluding depreciation -17 331 -18 069 -69 758 -69 020
EBITDA 3 069 -625 -1 691 2 002
Total depreciation -5 895 -6 237 -24 767 -24 425
Operating profit/loss -2 826 -6 862 -26 458 -22 423

===== SIDA 28 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596
FINANCIAL GLOSSARY
NET SALES GROWTH
Percentage change compared with the corresponding period in the previous year. A measure of whether a
company’s net sales are increasing.

GROSS MARGIN
Gross profit/loss divided by net sales. Indicates the proportion of sales that is left over to cover wages, other
operating expenses, interest and profit.

OPERATING PROFIT/LOSS
Profit loss before financial net and tax. measure of a company’s profit before interest and taxes, i.e., the difference
between operating income and operating expenses.

OPERATING EXPENSES
Operating expenses excluding cost of goods sold. Operating expenses are expenses that do not belong directly to a
particular product or product group. Common operating expenses include, for example, wages and other personnel
expenses, as well as rental of premises.

EBITDA
Profit loss before financial items and depreciation. This key figure shows the Group’s profit loss before
depreciation/amortization of capitalized assets. This measure makes it possible to make comparisons with other
companies, regardless of whether the operation is based on acquisitions or through organic growth.

OPERATING MARGIN
Operating profit/loss divided by net sales. Defines what proportion of each Swedish krona of sales is left over to
cover interest, taxes and any possible profit.

CASH FLOW
Cash flow from operating activities after changes in working capital. The operating cash flow indicates whether a
company can generate a sufficiently positive cash flow to maintain and expand its operation, or whether it needs
external financing.

WORKING CAPITAL
Current assets less current liabilities. This measure shows the capital a company needs to finance operating activities.

CAPITAL EMPLOYED
Total assets less non-interest-bearing liabilities and provisions. This measure shows how much capital is used in
operations and is thus one component of measuring the return from operations.

===== SIDA 29 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

EQUITY
Equity at the end of the period. Equity is the difference between the Group’s assets and liabilities, which corresponds
to the Group’s equity that has been contributed by shareholders and the Group’s accumulated profit.

AVERAGE EQUITY
The average equity was calculated as equity for the last four quarters divided by four.

LIQUIDITY RATIO
Current assets excluding inventories divided by current liabilities. This key figure shows the group’s ability to pay in
the short term.

EQUITY/ASSETS RATIO
Equity divided by assets on the balance sheet date. This key indicator shows what proportion of assets is funded by
equity. This measure can be of interest when assessing the Group’s ability to pay in the long term.

RETURN ON EQUITY
Profit loss after tax divided by average equity. This key figure shows the business’s return on shareholders’ capital
invested and is thus a measure of how profitable the Group is. Investors can compare this measure with the current
bank interest rate or return from alternative investments. The measure can also be used to compare profitability
between companies in the same industry.

EARNINGS PER SHARE BEFORE DILUTION
Profit/loss for the period divided by average number of shares.

EARNINGS PER SHARE AFTER DILUTION
Profit/loss for the period divided by the weighted average number of shares adjusted for potential shares that give
rise to a dilution effect.

EQUITY PER SHARE
Equity on the balance sheet date divided by the number of shares on the balance sheet date. A measure of the value
of equity per share, which is used when valuing the share in relation to the share price.

ANNUAL RECURRING REVENUE (ARR)
ARR is defined as repeat revenues at the end of the quarter for Digital Identity, converted to a 12-month period.
Consequently, there is no direct link between the ARR figure and future software revenues for Digital Identity. The
ARR metric is used for contractual recurring revenues for the Digital Identity segment, as Digital Identity has a large
customer base based on SaaS revenues. There are a small number of large customers in Biometric Technologies
(formerly Algo), and therefore license fees are not followed up using the definition of ARR in this segment.

===== SIDA 30 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

===== SIDA 31 =====

Interim Report Jan-Mar 2024
Precise Biometrics AB (publ), corp. ID no. 556545-6596

precisebiometrics.com