FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
===== SIDA 1 ===== 1 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Q1 Precise Biometrics Interim Report Jan–Mar 2025 ===== SIDA 2 ===== 2 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Precise technology is used 100K times/second all year round Precise Biometrics (Precise) is a global pioneer in the field of cybersecurity and biometric solutions. The offering includes algorithm products for fingerprint, facial and hand recognition, as well as turn key products for biometric access (Precise Access) and visitor management (Precise Visit by EastCoast). The 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. Precise operates through two main business areas, Digital Identity and Biometric Technologies, and operates from its offices in Lund (HQ), Stockholm, Potsdam NY, Seoul, Taipei and Shanghai. The Precise share is listed on the Nasdaq Stockholm (PREC). Find out more at www.precisebiometrics.com. ===== SIDA 3 ===== 3 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Table of Contents The period in brief ........................................................................................................................................................................... 4 Presentation and Q&A ................................................................................................................................................................... 5 CEO comments .................................................................................................................................................................................. 6 Security expert Åsa Schwarz on digital threats and cybersecurity ................................................................................ 8 Update from the business areas ................................................................................................................................................. 9 Customer offering .......................................................................................................................................................................... 10 Net sales and operating profit/loss ......................................................................................................................................... 11 Consolidated income statement – in summary .................................................................................................................. 14 Consolidated balance sheet – in summary ........................................................................................................................... 15 Consolidated cash flow statement – in summary .............................................................................................................. 16 Consolidated change in equity – in summary ..................................................................................................................... 17 Notes ................................................................................................................................................................................................... 18 Parent company income statement – in summary ............................................................................................................ 21 Parent company balance sheet – in summary .................................................................................................................... 22 Consolidated key indicators ....................................................................................................................................................... 23 Alternative consolidated key indicators ................................................................................................................................ 24 Analysis of results, in summary ................................................................................................................................................. 25 Financial glossary ......................................................................................................................................................................... 26 ===== SIDA 4 ===== 4 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 The period in brief: Stable demand but geopolitical events having a short-term impact on the business First quarter ▪ Net sales totaled SEK 20.0 (21.7) million o A change in revenue allocation in a renegotiated customer agreement results in higher revenue on an annual basis, but has an impact of SEK -1.0 million on net sales in the first quarter. ▪ EBITDA totaled SEK -1.7 (3.1) million o Adjusted for negative currency effects from operating items of SEK 1.6 million and a change in revenue allocation in a customer agreement of SEK 1.0 million, EBITDA amounts to SEK 0.9 million ▪ Cash flow from operating activities totaled SEK 2.1 (-2.8) million ▪ The operating profit/loss (EBIT) totaled SEK -7.1 (-2.8) million ▪ Earnings for the period totaled SEK -7.2 (-3.0) million ▪ Earnings per share before and after dilution totaled SEK -0.1 (-0.0) ▪ ARR (Annual Recurring Revenue) at the end of the period was SEK 18.4 (18.3) million Significant events during the quarter (the bullet list below contains links to the relevant press releases) ▪ The anti-spoof solution BioLive approved for national ID program ▪ The Nomination Committee proposes Victor Kuzmin for the Board of Directors ▪ Entering the Norwegian visitor management system market ▪ Expanded biometric physical access offering for high-security sector ▪ Showcasing Biometric Security Solutions at ISC West in Las Vegas ▪ Västra Hamnen Corporate Finance initiates coverage of Precise ▪ Xiaomi launches new smart safe with technology from Precise Significant events after the end of the interim period (the bullet list below contains links to the relevant press releases) ▪ Rebranding initiative to clarify and strengthen Precise’s offering Financial data and key indicators See the Financial Glossary for definitions. 2025 2024 2024 Rolling Amounts in SEK thousands unless otherw ise stated Jan-Mar Jan-Mar Full-year 12 mth Net sales 20 007 21 684 86 852 85 175 Net sales grow th, % -7,7% 13,2% 15,7% 9,8% EBITDA -1 689 3 069 13 379 8 622 Gross margin, % 71,9% 72,2% 72,6% 72,6% Operating profit/loss -7 051 -2 826 -9 414 -13 639 Operating margin, % -35,2% -13,0% -10,8% -16,0% Cash flow from the operating activities 2 103 -2 832 10 055 14 990 Cash and cash equivalents 36 036 41 148 37 704 Annual Recurring Revenue 18 376 18 317 18 980 ===== SIDA 5 ===== 5 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Presentation and Q&A Precise has published a video interview with CEO Joakim Nydemark in connection with this report. The interview is designed to complement the report and provide additional depth and a better understanding of the stock market for the company’s business operations. The video is available on the Investor Relations page: https://precisebiometrics.com/sv/investerare/ The company also invites you to a Q&A session. More information and a link to the Q&A session may be found on the Investor Relations page: https://precisebiometrics.com/sv/investerare/ Time of Q&A: May 14, 2025, at 13:00 (CET). Questions can be asked directly during the Q&A or submitted in advance to investor@precisebiometrics.com Q&A May 14, 13:00 ===== SIDA 6 ===== 6 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 CEO comments Stable demand but geopolitical events having a short-term impact on the business We are continuing our journey at a high tempo, even though the figures for the first quarter are affected by quarterly fluctuations and the turbulent global market situation. Net sales for the quarter totaled SEK 20.0 (21.7) million and EBITDA was SEK -1.7 (3.1) million. Both net sales and earnings are affected by the weakening US dol- lar and a change in the allocation of revenue from a cus- tomer agreement. The latter affects the quarter, but not the full year. EBITDA adjusted for these two factors totals SEK 0.9 million, which is in line with our expectations given the cost of increasing our selling power and the caution we are experiencing among our customers linked to the uncertainty surrounding the effects of new tariffs. At the same time, cash flow of SEK 2.1 million (-2.8) rep- resents an improvement compared to the corresponding quarter last year. There has also been commercial pro - gress during the period, including in national ID pro - grams where we have been approved by the Unique Iden- tification Authority of India (UIDAI) for use in Aadhaar, the national ID program. We feel that demand for the company’s products is increasing, even though the mar - ket situation is prolonging business discussions, and given the new customer projects initiated during the quarter, we have a positive view of the full year 2025. We are continuing to execute on the commercialization strat- egy and growth journey that has only just begun. We are well-positioned to continue to deliver market-leading visitor management systems, security solutions and biometric products with a focus on expansive verticals and geographies. We are cost-conscious, and by renegotiating sup plier agreements and efficiency improvements, we have been able to increase our selling power and productivity with a relatively small cost increase. This will yield results during 2025. Biometric Technologies The first quarter was characterized by new mobile projects and intensive work aimed at customers and partners both within the mobile vertical and for our latest offerings linked to hand recognition and anti -spoofing for national ID pro - grams. By meeting the strict requirements of national ID pro- grams such as Aadhaar, BioLive not only boosts the integrity of these systems, but also sets a new standard for anti-spoof- ing and liveness detection, opening up new geographical markets such as Southeast Asia, Africa, and South America. Sensor production, which governs our royalty volumes, can also vary greatly between different quarters, which is why it is important to view the company’s growth over a number quar- ters, not just individual quarters. Given the turbulent global situation, volumes have varied more than usual, as many of our customers have been more cautious in their production during the past quarter – in order to avoid high inventory lev- els if sales of consumer products were to be negatively af - fected by tariffs or the econ omic climate in general. We feel confident in our relationship with partners and remain opti - mistic about growth for 2025. With end products in several verticals and in Asia, Europe, and the USA, we have good cov- erage, which we believe will balance the volumes over time. The vehicle vertical has now started to deliver royalty vol - umes, and despite the market situation, this segment came in slightly higher than expected in the first quarter. The trend is increasing continuing towards the Software Defined Vehicle (SDV) concept, where we are positioning ourselves together with Infineon as a world leader in the field of biometrics for the automotive industry. Digital Identity Growth in our offerings in the Digital Identity business area is still not at the level we want to be, but it is now moving for - ward and we can see that our framework agreements with larger companies will contribute to positive development go- ing forward. During the quarter, we made investments and launched new products, such as a locally installed (on -prem- ise) version of Precise Access, our physical access solution, as a complement to the company’s existing hybrid cloud solu - tion. By offering full on -premise implementation, we are meeting the increasingly demanding security requirements of high-security organizations including government agencies, critical infrastructure facilities, and defense organizations. During the quarter, we further strengthened the sales organ- ization by hiring sales resources in Norway. These will be working closely with the Swedish organization to ensure rapid upscaling and cost efficiency. The goal is to both accelerate business with customers and build a local partner network. ===== SIDA 7 ===== 7 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 We see a growing demand for our visitor management system, both in Sweden and internationally, which, combined with the fact that many existing customers are ex- panding the solution to more of fices, creates the conditions for growth in 2025. The continued migration to the cloud is one of the highlights of the period, with customers who mi grated including Alfa Laval, Familje - bostäder, Tobii Technology and Öresundskraft. Demand con- tinues to benefit from several external factors, such as the se- curity situation, new regulatory requirements and the fact that modern companies want to be more customer-centric. Our offering To further enhance and clarify our offering, and to simplify internal processes, we are bringing all products together un - der the Precise brand. The name YOUNiQ is disappearing and EastCoast will become part of the Precise Visit name. Our physical access system will be called Precise Access and our visitor management system Precise Visit by EastCoast. Com- pany names are not affected, nor the product functionality. Future prospects There is an incredible level of activity in the areas that are the cornerstones of our business – biometrics, cybersecurity, seamless access and AI. In parallel with our commercialization strategy, we are continuing to open up new offerings, includ- ing national ID programs, hand recognition and on -premise access systems. I feel that we have an extremely positive and exciting future ahead of us, and if I look ahead to the coming year, there is a lot to suggest healthy growth. In a society where security and user-friendliness are becoming increasingly central, our solu- tions help create greater peace of mind. As one of the actors in the field of ultrasound algorithms, I see potential for in - creased revenue, while we make progress in cybersecurity, the automotive industry and biometric solutions for government agency projects. With a strong product portfolio, stable fi - nances and long-term partnerships, we are well positioned. Many thanks to our highly competent team, customers and partners. Together we are creating a simpler and safer world. Onwards and upwards! Joakim Nydemark CEO My top three: ▪ The fundamental macro drivers of our offering are stronger than ever ▪ Many opportunities in national ID programs ▪ Our knowledge and our strong offering ===== SIDA 8 ===== 8 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Security expert Åsa Schwarz on digital threats and cybersecurity In a world where digital threats are becoming increas - ingly sophisticated, cybersecurity is more important than ever. Åsa Schwarz, expert on the subject and Board mem- ber at Precise, shares her thoughts on today’s biggest risks, how companies and individuals can protect them - selves – and how she combines cybersecurity with her work as an author. How did your interest in cybersecurity start, and what is cybersecurity actually? I started programming as a child, but came into contact with cybersecurity during a summer course while studying at uni - versity. Then I was hooked. Cybersecurity nowadays is a broad concept meaning that you work systematically to ensure that information in systems and networks is available, correct, and can only be accessed by the right people. The big difference today is that all businesses are completely dependent on IT, which makes security and secure systems even more important now than ever before. Is cybersecurity completely detached from physical se- curity, or how does it all link together? In the past it was detached, but now the two are very much interlinked. Our locks and alarms are digitalized, and it’s every bit as important that the bolt in a lock is as robust as the IT system behind it. If you have biometric solutions such as those from Precise, it's even more integrated. What are the biggest risks today, and what are your best tips for staying safe? Hackers try to gain access to either money or information, and we see that in some countries criminal hacker groups col- laborate with state actors. It makes a big difference whether you’re a private individual or a company. Private individuals are often targeted by fraud and phishing. Companies often have a much broader risk profile, facing everything from ran- somware, where a criminal encrypts your information and hard drives, DDoS attacks, where systems become unavaila - ble, to problems with suppliers who have security problems themselves. And we mustn’t forget that many incidents are due to user error or poor systems. As a private individual, you can keep in mind some basic measures such as always having backup, multi-factor authen- tication and long passwords. But above all, you must be alert when things are not as they usually are. Companies need to work systematically with cybersecurity throughout the organization. What is the most common misconception related to cybersecurity work in organizations? One of the biggest preconceptions is that it’s the IT depart - ment’s problem. Many breaches and errors are caused by us- ers making mistakes. Management and, in some cases, the Board of Directors must also be involved in determining the risk appetite and focus of security work. How do you see the role of Precise’s offering in cyber- security? Precise has several different solutions that increase security while making life a little easier for users. One typical example is fingerprints to open a mobile phone, computer or car. Sup- port for visitor management is also an important part of a company’s systematic security work. How do you think digital developments and cyber threats/risks will change going forward? Right now, the world around us is extremely turbulent, which means that companies must find ways to continuously man - age new risks. Criminal activity online has also increased sig - nificantly, which increases the need for security. Will those who develop cybersecurity solutions or the “cyber villains” win at the end of the day? That’s the classic question. I think we’ll continue as before, with the villains constantly challenging and finding new ways, while those of us working with security are constantly learning and improving. The big trend is that those that are good at managing incidents are also the ones that perform the best. You’re not just a cybersecurity expert, but also an au- thor – how do you weave that into your books? Although all my books are thrillers, some also deal with cybersecurity. For example, Master of Dolls has elements of artificial intelligence and security, and The Seven Keys is a hacker thriller. Åsa Schwarz Board member at Precise Biometrics and Enea, and Head of Business Development at Knowit Cybersecurity & Law. She also writes thrillers. ===== SIDA 9 ===== 9 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Update from the business areas Biometric Technologies The market for the company’s biometric platform suite con - tinues to grow, and Precise continues to hold a very strong position, primarily in the ultrasonic and anti -spoof segment. The market for our customers’ sensor hardware is competitive and under price pressure, but the algorithm software for ul - trasonic and anti-spoof has better margins. A few highlights: ▪ The security situation and technological developments are generating opportunities, and there are generally high levels of interest and many ongoing business discussions. ▪ One area of particular interest is National ID Programs. New, stricter security requirements are being established to reduce the risk of fraud, manipulation, and various forms of attack. Precise's anti-spoof solution BioLive fits in well here, and it is already integrated in biometric readers that are certified for the updated Aadhaar requirements. There are some very interesting things happening in this area, but this also involves large government agency pro- jects with long processes. ▪ Successful marketing of Palm, including activities at ISC West in Las Vegas and IFSEC Korea in Seoul. The company is seeing a high level of interest in both palm as a modality and the various solutions presented during meetings with stakeholders, including multi-factor authentication (MFA) for physical access. Precise is constantly taking new steps in terms of functionality and performance in its biometric platform suite. One specific example is the new packaging of the BioLive anti -spoof solution, where both AI technology and services in the form of data collection are important components. Digital Identity Precise has a strong offering in the field of visitor management systems and physical access. The company grows its customer base through both new customers and additional sales to existing customers. The offering for the Precise Visit by EastCoast visitor manage- ment system (formerly EastCoast Visit in Sweden and YOUNiQ Visit internationally) is growing and expanding inter- nationally, while also being enhanced with new functionality. The first month of the year was weak, which is normal, but towards the end of the period there was strong growth, and during the quarter new and updated agreements were signed with, among others, Atlas Copco, Certego Norge, the City of Helsingborg, Norstedts, SJ Stockholms Tåg and Tradera. The company has also seen its solutions implemented in new geographical markets such as Germany and Latvia. The visitor management system initiative is being affected in the short term by higher churn, as a result of the change in strategy that involved an investment in a scalable cloud and SaaS solution. Some customers with legacy on-premise solu- tions are choosing not to renew their agreements. The main reason is that they no longer see any need for a visitor man - agement system. A small number of customers also re - questing special functionality that is not available in the cloud solution. Even if this means a temporary cut in the ARR stock, Precise and its management are convinced that building a more uniform and scalable cloud business is the right deci - sion in the medium to long term. Management also believes that this negative impact will be short -term. Evidence of this is provided by strong new sales of our cloud solution, the fact that no cloud customers left during the quarter and the pos- itive trend that can be seen in connection with framework agreements with large corporate groups. Sales of Precise Access did not meet expectations during the quarter, mainly due to economic uncer tainty in the world at large and uncertainty about GDPR and similar regulations. But interest in the solution remains greater than ever, given the situation in the world and the opportunities offered by the product. There has been a particularly high level of interest in hand modality, which was ev ident at the ISC West security trade event in Las Vegas. The product was on display at the Genetec booth during the event. A few highlights: ▪ Precise Visit by EastCoast is growing internationally, with new customers in Asia, the USA and Europe. At the same time, Precise has launched an initiative in Norway. ▪ More public sector players are using Precise solutions. ▪ An on-premise version of Precise Access was launched in order to better meet the increased security requirements from users, including high-security companies. Product roadmap Several new functions have been launched, including Agree- ment Signature, where links can be created between the visi- tor management system and confidentiality agreements. ===== SIDA 10 ===== 10 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Customer offering In a society where security and user -friendliness are be - coming increasingly central, Precise helps create in - creased peace of mind by developing innovative technical solutions in the areas of cybersecurity and biometric recognition. Simplicity and a first -class user experience are combined with performance and a high level of secu- rity. Instead of using a PIN, password, key, card, etc. you use your finger, face or hand for authentication or iden - tification. There are areas of application in both digital and physical access, and the applications are found in, for example, mobile phones, laptops, logical access, payment, vehicles, and in visitor management and access systems, and various forms of government ini tiatives such as national ID systems and Automated Biometric Identification Systems (ABIS). The offering consists of biometric algorithm products, basic technology, which component manufacturers use in their products, and also end -customer products for access and visitor management. The focus is on creating a safe and seamless everyday environment for people by combining user -friendliness with a high level of security in our cybersecurity and biometric security solutions. Why Precise? ▪ Unique knowledge, as biometrics and cybersecurity has been the company’s core business for 25 years. ▪ Established on the global market, the technology is used more than 100,000 times per second, all year round. ▪ Large customer base and a global ecosystem of partners. ▪ Software company, which creates flexibility and the facility to make quick changes. ▪ Hardware-independent. ▪ Combines several different biometric modalities such as finger, palm, and face. Our products Systems for physical access and visitor management ▪ Precise Access: Biometric access for physical security. ▪ Precise Visit by EastCoast: Visitor management system. Biometric suite for biometric recognition ▪ BioMatch: Fingerprint and palm matching product. ▪ BioLive: Prevent manipulation, fraud and forgery by ensuring the authenticity of biometric prints. ▪ BioEnhance: Image enhancement, e.g., regarding biometric prints before matching. ===== SIDA 11 ===== 11 Interim Report Jan – Mar 2025 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 totaled SEK 20.0 (21.7) million, di- vided between royalty revenues of SEK 8.7 (10.5) million, license fees (including support and maintenance) of SEK 9.8 (9.8) mil - lion and other revenues of SEK 1.5 (1.4) million. Royalty reve - nues during the first quarter are slightly lower than in the pre - vious year, which is partly explained by a renegotiated cus - tomer agreement. The agreement entails increased revenue on an annual basis, but lower royalty revenue in Q1 by approxi - mately SEK 1 million. The agreement will have a positive effect in the second half of the year, as revenues will be distributed more evenly between the quarters ahead. A weaker USD also had a negative impact on royalty revenues. Biometric Technologies Net sales for Biometric Technologies totaled SEK 14.9 (16.7) million and are reported under royalties at SEK 8.7 (10.5) mil - lion, licenses at SEK 5.1 (5.3) million, and other revenue at SEK 1.1 (0.9) million. Royalty revenues in the first quarter were slightly lower than in the previous year, as a consequence of a renegotiated customer agreement and a weaker USD. The re - negotiation of the agreement is positive and entails an increase in revenue on an annual basis, but the change affects how rev- enue is distributed over the year. The gross margin during the quarter totaled 82.9% (85.3). The decrease is mainly due to lower net sales. Royalty revenues are based on customers’ sales volumes, and a reduction in royalty revenues therefore has a negative impact on margins as they do not entail lower costs. Digital Identity Net sales for Digital Identity totaled SEK 5.1 (5.0) million and are reported under licenses at SEK 4.7 (4.5) million, and other revenue at SEK 0.4 (0.5) million. The proportion of annual recurring revenue (ARR) was SEK 18.4 (18.3) million at the end of the quarter. As part of the company’s strategy to increase the proportion of annual recurring revenue (ARR) at the expense of one -off licenses and to gradually mi grate older products, some churn occurred during the period. At the same time, the quarter saw positive new sales. The gross margin during the quarter totaled 39.8% (28.7). The higher gross margin is explained by a higher proportion of software, where the margin is higher compared with hardware sales. Earnings for the quarter The gross margin during the quarter totaled 71.9% (72.2). The decrease is primarily due to lower royalty revenues. Amortiza - tion of capitalized development expenses totaled SEK 3.9 (4.3) million. Amortization of acquired intangible assets totaled SEK 0.6 (0.6) million. Operating expenses for the quarter increased to SEK 21.4 (18.5) million. During the quarter, the company was negatively af - fected by the USD exchange rate, which in its en tirety resulted in other operating expenses of SEK -1.6 million. The corre - sponding period in the previous year saw operating income of SEK 0.7 million, which means a currency-related change of SEK 2.3 million between the periods. Personnel expenses increased slightly during the quarter due to more employees, but the company also reduced consultancy expenses. The profit/loss at EBITDA level decreased to SEK -1.7 (3.1) mil- lion, which is explained by the exchange rate impact, a renegotiated customer agreement which in accounting terms entails approximately SEK 1 million lower income in the quarter – but higher income on an annual basis – and increased personnel expenses for the sales and product organization. The operating profit/loss (EBIT) for the quarter totaled SEK -7.1 (-2.8) million. Earnings for the quarter totaled SEK -7.2 (-3.0) million. Total depreciation/amortization of SEK 5.4 (5.9) million. Earnings per share (average number of shares) for the quarter totaled SEK -0.09 (-0.04). 50% 60% 70% 80% 0 5 10 15 20 25 30 35 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Net sales & G ross margin Net sales G ross margin -8 -6 -4 -2 0 2 4 6 8 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Operating profit/Loss & E B IT DA P rofit/Loss E B IT DA ===== SIDA 12 ===== 12 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Net financial items and 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 ex- pense on the deferred fixed purchase price related to the acquisition of EastCoast. Cash flow & investments The cash flow from operating activities during the quarter totaled SEK 2.1 ( -2.8) million, of which SEK 4.1 ( -5.8) million is attributable to changes in working capital. The Group invested SEK 0.0 (0.0) million in property, plant and equipment during the period. Total cash flow for the period was SEK -1.5 (-6.5) million. Capitalization & amortization of development work Development expenses of SEK 3.0 (3.0) million were capitalized during the quarter, and amortization of capitalized development expenses in respect of Digital Identity and Biometric Technologies totaled SEK 3.9 (4.3) million. Right of use assets No new rental agreements were added during the quarter, but an extension of rental agreements in Lund and indexation of rent in Lund and Stockholm resulted in an increase in lease liabilities of SEK 3.4 (5.8) million. Financial position & liquidity Cash and cash equivalents at the end of the period totaled SEK 36.0 (41.1) million. Total equity at the end of the period was SEK 143.6 (156.5) million, and equity per share was SEK 1.83 (1.99). The parent company The parent company’s net sales for the quarter totaled SEK 16.1 (17.7) million and operating profit/loss for the quarter totaled SEK -6.8 (-3.1) million and was charged with amortization of goodwill totaling SEK 0.6 (0.6) million. Cash and cash equivalents at the end of the interim period totaled SEK 23.6 (26.7) million, and equity SEK 132.1 (146.1) million. Organization & 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 interim period, the Group had a workforce of 45 (43) people, including on -site consultants. The number of employees was 36 (32), of which 29 (24) 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 ▪ AGM 2025 – May 22, 2025 ▪ Q2 Interim report 2025 – August 15, 2025 ▪ Q3 Interim Report 2025 – November 14, 2025 ▪ Year-End Report 2025 – February 12, 2026 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 2024, which was issued in April 2025. 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 AB’s shares are listed on the Small Cap list of the Nasdaq OMX Nordic. The number of shareholders at the end of the quarter was 22,299 (16,270). 50,037,551 (13,305,644) PREC shares were traded during the quarter. The closing price on March 31 was SEK 4.01 (1.11), and during the quarter the share price fluctuated between SEK 2.98 (0.80) and SEK 5.77 (1.17). -10 -5 0 5 10 15 20 0 10 20 30 40 50 60 70 80 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 S E K m Operating cash flow & C ash C ash C ash flow ===== SIDA 13 ===== 13 Interim Report Jan – Mar 2025 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’s and the Group’s operations, financial position and financial results, and describes the significant risks and uncertainty factors faced by the parent company and the companies that belong to the Group. Lund, May 14, 2025 Torgny Hellström Chairman of the Board Howard Ro Peter Gullander Maria Rydén Åsa Schwarz Board member Board member Board member Board member Joakim Nydemark CEO For further information, please contact: Joakim Nydemark, CEO Email: joakim.nýdemark@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 at 08:00 (CET). ===== SIDA 14 ===== 14 Interim Report Jan – Mar 2025 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 subscription price in current option programs. 2025 2024 2024 Rolling Amounts in SEK thousand Note Jan-Mar Jan-Mar Full-year 12 mth Net sales 2,3 20 007 21 684 86 852 85 175 Cost of goods sold -5 615 -6 027 -23 786 -23 374 Gross profit 14 392 15 657 63 066 61 801 Marketing and sales expenses -8 804 -8 484 -32 982 -33 302 Administrative expenses -3 944 -3 850 -13 789 -13 883 R&D expenses -7 097 -6 808 -26 966 -27 255 Other operating income/expenses -1 597 658 1 256 -999 -21 441 -18 483 -72 480 -75 438 Operating profit/loss -7 051 -2 826 -9 414 -13 639 Finacial income/expenses 4 -228 -229 630 631 Profit/Loss before tax -7 278 -3 055 -8 784 -13 007 Tax 86 86 351 351 Profit/loss for the period attributable to parent company shareholders -7 193 -2 969 -8 433 -12 657 Earnings per share, remaining operations, SEK* - before dilution -0,09 -0,04 -0,11 -0,16 - after dilution -0,09 -0,04 -0,11 -0,16 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Profit/Loss for the period -7 193 -2 969 -8 433 -12 657 Other comprehensive income: Items that may be reclassified to profit or loss Changes in accumulated exchange rate differences -342 158 274 -226 Other comprehensive income for the period -342 158 274 -226 Profit/Loss total attributable to holders of participations in the parent company -7 535 -2 811 -8 159 -12 883 ===== SIDA 15 ===== 15 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated balance sheet – in summary Amounts in SEK thousand ASSETS Note 2025-03-31 2024-03-31 2024-12-31 FIXED ASSETS Material assets 13 174 11 312 10 639 Goodw ill and immaterial assets 123 230 130 804 124 741 TOTAL FIXED ASSETS 136 404 142 116 135 380 CURRENT ASSETS Inventories 222 292 242 Accounts receivable 22 748 26 845 23 813 Other current receivabels 2 922 3 016 3 123 Accruals and deferred income 3 184 3 056 2 804 Cash and cash equivalents 4,6 36 036 41 148 37 704 TOTAL CURRENT ASSETS 65 113 74 357 67 686 TOTAL ASSETS 201 517 216 473 203 066 EQUITY AND LIABILITIES EQUITY Equity 143 629 156 509 151 163 TOTAL EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS 143 629 156 509 151 163 LONG-TERM DEBT Long term debt 6 19 233 22 614 16 281 TOTAL LONG-TERM DEBT 19 233 22 614 16 281 SHORT-TERM LIABILITIES Short-term liabilities 4,6 38 656 37 350 35 621 Total Short-term liabilities 38 656 37 350 35 621 TOTAL EQUITY AND LIABILITIES 201 517 216 473 203 066 ===== SIDA 16 ===== 16 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated cash flow statement – in summary 1) The balance sheet item Cash & Cash Equivalents only includes bank balances at both the beginning and end of the period. 2025 2024 2024 Rolling Amounts in SEK thousand Note Jan-Mar Jan-Mar Full-year 12 mth Cash flow from operating activities Operating profit/loss -7 051 -2 826 -9 414 -13 639 Adjustments for items not included in cash flow 5 252 6 011 22 928 22 169 Interest payments, net -228 -229 630 631 Tax paid 3 -7 -22 -12 Cash flow from operating activities -2 024 2 949 14 122 9 149 before changes in working capital Cash flow from changes in working capital Change in inventories 20 66 117 71 Change in current receivables 824 -7 306 -4 113 4 017 Change in current liabilities 3 283 1 459 -71 1 753 4 127 -5 781 -4 067 5 841 Cash flow from operating activities 2 103 -2 832 10 055 14 990 Acquisition of subsidiaries 6 0 0 -6 168 -6 168 Investment in fixed assets -40 31 -370 -441 Investment in intangible assets -2 961 -3 055 -10 967 -10 873 Cash flow from investing activities -3 001 -3 024 -17 505 -17 482 New share issue 0 0 0 0 Commission expenses 0 0 0 0 Repurchase of ow n shares -1 -1 -3 -3 Payment of lease liability -600 -622 -2 542 -2 520 Cash flow from financing activities -601 -623 -2 545 -2 523 Total Cash flow -1 498 -6 478 -9 994 -5 014 Cash & cash equivalents at beginning of year 37 704 47 534 47 534 41 148 Exchange rate differences in cash & cash equivalents -171 91 164 -98 Cash & cash equivalents at end of period 1) 36 036 41 148 37 704 36 036 ===== SIDA 17 ===== 17 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated change in equity – in summary Amounts in SEK thousand 2025 2024 2024 Rolling Note Jan - Mar Jan-Mar Full-year 12 mth Equity at start of period 151 163 159 319 159 319 156 509 Comprehensive income Profit/loss for the period -7 193 -2 969 -8 433 -12 657 Other comprehensive income Exchange differences -342 158 274 -226 Total other comprehensive income -342 158 274 -226 Total comprehensive income -7 535 -2 811 -8 159 -12 883 Transactions with shareholders LTI programme 5 1 1 2 2 New share issue 0 0 0 0 New issue cost 0 0 0 0 Total transactions w ith shareholders 1 1 2 2 Equity end of period 143 629 156 509 151 163 143 629 ===== SIDA 18 ===== 18 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Notes Note 1 – Accounting policies This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The parent company’s financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Annual Reporting Board’s recommendation RFR 2, Accounting for Legal Entities. The recognition and measurement policies and bases of estimates applied in the Annual Report for 2024 report have also been used in this interim report. Note 2 – Revenue allocation * Sale at a certain time means that revenue is reported point-in-time at the start of the agreement period, when control has been transferred to the customer. Royalties have been moved to sales at a certain point in time in order to provide a more accurate picture. ** Sales over time means that revenue is accrued on a straight-line basis over the term of the agreement. 2025 2024 2024 Rolling Amounts in SEK thousand Jan-Mar Jan-Mar Full-year 12 mth Segment Biometric Technologies Royalty 8 663 10 488 41 089 39 264 Licenses, incl. support & maintenance 5 121 5 281 21 976 21 816 Other 1 146 911 2 358 2 593 Digital Identity Licenses, incl. support & maintenance 4 640 4 515 18 588 18 713 Other 437 489 2 841 2 789 Total 20 007 21 684 86 852 85 175 Timing of revenue recognition At point in time* 10 258 11 884 47 777 46 152 Over time** 9 749 9 800 39 075 39 023 Total 20 007 21 684 86 852 85 175 Region/Country Europe 6 474 5 824 27 598 28 248 - w hereof Sw eden 5 264 4 819 20 356 20 801 Asia 6 395 8 125 29 443 27 713 - w hereof China 275 361 1 372 1 286 - w hereof Taiw an 5 327 6 871 24 963 23 420 USA 7 138 7 735 29 811 29 214 Total 20 007 21 684 86 852 85 175 ===== SIDA 19 ===== 19 Interim Report Jan – Mar 2025 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 14 930 5 077 20 007 16 680 5 004 21 684 Cost of goods sold exkl. depreciation -272 -1 057 -1 328 -220 -1 063 -1 284 Depreciation included in cost of sold goods -2 289 -1 998 -4 287 -2 238 -2 505 -4 744 Gross profit 12 370 2 022 14 392 14 221 1 435 15 657 Biometric Technologies Digital Identity Total Segment Biometric Technologies Digital Identity Total Segment Net sales 65 424 21 428 86 852 63 675 21 501 85 175 Cost of goods sold exkl. depreciation -1 259 -4 297 -5 556 -1 310 -4 290 -5 600 Depreciation included in cost of sold goods -9 402 -8 828 -18 230 -9 452 -8 321 -17 773 Gross profit 54 764 8 303 63 066 52 913 8 890 61 801 Other information 2025 2024 2024 Rolling Reconciliation profit/Loss jan-mar jan-mar Full-year 12 mth Gross profit 14 392 15 657 63 066 61 801 Marketing and sales expenses -8 804 -8 484 -32 982 -33 302 Administrative expenses -3 944 -3 850 -13 789 -13 883 R&D expenses -7 097 -6 808 -26 966 -27 255 Other operating income/expenses -1 597 658 1 256 -999 Finacial income/expenses -228 -229 630 631 Profit/Loss before tax -7 278 -3 055 -8 784 -13 007 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 Full-year 12 mth 2025 2024 Jan - Mar Jan - Mar 2024 Rolling ===== SIDA 20 ===== 20 Interim Report Jan – Mar 2025 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 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 (see Note 6). SEK 30,000 thousand was paid on December 1, 2022, SEK 10,000 thousand on November 30, 2023 and SEK 5,000 thousand on November 30, 2024. SEK 5,000 thousand will be paid 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. Interest for the period from December 1, 2023 to November 30, 2024 was paid on November 30, 2024. The interest, of 3 months STIBOR + 8%, will be added from November 30, 2023 until the amounts have been paid. The liability is recognized as an interest-bearing liability as of March 31, 2025. 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 5,961 thousand) and other non-current liabilities (SEK 5,351 thousand). Note 5 – LTI program The Annual General Meeting 2022 resolved, in accordance with the Board’s proposal, to establish a long-term share bonus program (LTI 2022/2028) for all employees at 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, 2025, Precise Biometrics held 1,085,000 Class C shares. Note 6 – Business combinations 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 thousand, of which SEK 24,466 thousand was paid as at December 31, 2021, partly via a cash payment of SEK 18,000 thousand and partly via the issuing of new shares totaling SEK 6,466 thousand. 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. See Note 4 for details of the new terms and conditions. Impact on cash and cash equivalents in 2025 (reported in investing activities): There is no impact on the Group’s cash and cash equivalents during Q1 2025. See Note 4 regarding repayment of liability. ===== SIDA 21 ===== 21 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Parent company income statement – in summary 2025 2024 2024 Rullande Amounts in SEK thousand Note jan-mar jan-mar Helår 12 mån Net sales 1 16 065 17 710 69 959 68 314 Cost of goods sold -7 624 -8 214 -32 412 -31 823 Gross profit 8 441 9 496 37 547 36 491 Marketing and sales expenses -6 414 -5 684 -20 783 -21 513 Administrative expenses -3 815 -3 727 -13 227 -13 315 R&D expenses -3 381 -3 803 -16 031 -15 609 Other operating income/expenses -1 587 655 1 261 -981 -15 197 -12 559 -48 780 -51 418 Operating profit/loss -6 756 -3 063 -11 233 -14 927 Financial income/expenses -100 -140 809 849 Group contributions received 0 0 151 150 Profit/loss before tax -6 856 -3 202 -10 274 -13 928 Tax 0 0 0 0 Profit/loss for the period -6 856 -3 202 -10 274 -13 928 ===== SIDA 22 ===== 22 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Parent company balance sheet – in summary Amounts in SEK thousand ASSETS Note 2025-03-31 2024-03-31 2024-12-31 Fixed assets Fixed assets 975 1 776 1 196 Immaterial assets 21 379 29 282 22 812 Deferred tax assets 90 558 90 558 90 558 TOTAL FIXED ASSETS 112 912 121 616 114 566 CURRENT ASSETS Inventories 0 64 0 Accounts receivable 20 791 24 467 20 859 Receivable Group 8 259 2 074 8 145 Other receivables 1 633 11 656 1 841 Accruals and deferred income 2 616 2 635 2 449 Cash and cash equivalents 23 640 26 655 25 452 TOTAL CURRENT ASSETS 56 939 67 551 58 746 TOTAL ASSETS 169 851 189 167 173 312 EQUITY AND LIABILITIES Restricted Equity Share capital 23 539 23 539 23 539 Statutory reserve 1 445 1 445 1 445 Reserve for development expenses 15 272 20 002 15 911 Total restricted equity 40 255 44 986 40 895 Unrestricted Equity Share premium reserve 168 316 168 316 168 316 Retained earnings -69 576 -64 033 -59 942 Profit/loss for the year -6 857 -3 203 -10 274 Total non-restricted equity 91 883 101 081 98 100 Total Equity 132 139 146 066 138 995 LONG-TERM DEBT Long term debt 5 350 11 351 5 337 TOTAL LONG-TERM DEBT 5 350 11 351 5 337 SHORT-TERM LIABILITIES Short-term liabilities 32 362 31 750 28 979 Total Short-term liabilities 32 362 31 750 28 979 TOTAL EQUITY AND LIABILITIES 169 851 189 167 173 312 ===== SIDA 23 ===== 23 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated key indicators * The key indicator is calculated excluding current liabilities to EastCoast International AB. 2025 2024 2024 Rolling Amounts in SEK thousands unless otherw ise stated Jan-Mar Jan-Mar Full-year 12 mth Net sales 20 007 21 684 86 852 85 175 Net sales grow th, % -7,7% 13,2% 15,7% 9,8% Gross margin, % 71,9% 72,2% 72,6% 72,6% EBITDA -1 689 3 069 13 379 8 622 Operating profit/loss -7 051 -2 826 -9 414 -13 639 Working capital * 32 417 43 135 38 019 32 417 Capital employed 154 939 173 988 162 455 154 939 Liquidity ratio, % 167,9% 198,3% 189,3% 167,9% Equity/assets ratio, % 71,3% 72,3% 74,4% 71,3% Earnings per share before dilution, SEK -0,09 -0,04 -0,11 -0,16 Earnings per share after dilution, SEK -0,09 -0,04 -0,11 -0,16 Equity per share, SEK 1,83 1,99 1,93 1,83 Number of shares (thousands) 78 464 78 464 78 464 78 464 Weighted avg. number of shares, adjusted for dilution effect (thousands) 78 464 78 464 78 464 78 464 Number of employees at the end of the period 36 32 35 36 Average number of employees during the period 36 31 32 34 Annual Recurring Revenue 18 376 18 317 18 980 ===== SIDA 24 ===== 24 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Alternative consolidated key indicators Amounts in SEK thousands 2025 2024 2024 Rolling unless otherw ise stated Jan-Mar Jan-Mar Full-year 12 mth Net sales 20 007 21 684 86 852 85 175 Net sales grow th, % -7,7% 13,2% 15,7% 9,8% Gross profit 14 392 15 657 63 066 61 801 Net sales 20 007 21 684 86 852 85 175 Gross margin, % 71,9% 72,2% 72,6% 72,6% Operating profit/loss -7 051 -2 826 -9 414 -13 639 Net sales 20 007 21 684 86 852 85 175 Operating margin, % -35,2% -13,0% -10,8% -16,0% EBITDA -1 689 3 069 13 379 8 622 Depreciation and amortization -5 362 -5 895 -22 794 -22 260 Operating profit/loss -7 051 -2 826 -9 414 -13 638 Current assets 65 113 74 357 67 686 65 113 Current liabilities excl. current liabilities EastCoast International* 32 696 31 222 29 667 32 696 Working capital 32 417 43 135 38 019 32 417 Sales expenses -8 804 -8 484 -32 982 -33 302 Administrative expenses -3 944 -3 850 -13 789 -13 883 R&D expenses -7 097 -6 808 -26 966 -27 255 Other operating income/expenses -1 597 658 1 256 -999 Total operating expenses -21 441 -18 483 -72 480 -75 438 Cost of goods and services sold -5 615 -6 027 -23 786 -23 374 Depreciation Cost of goods sold 4 287 4 744 18 230 17 773 Cost of goods and services sold excluding depreciation -1 328 -1 283 -5 556 -5 601 Operating expenses -21 441 -18 483 -72 480 -75 438 Depreciation Operating expenses 1 075 1 152 4 564 4 487 Operating costs excluding depreciation -20 366 -17 331 -67 916 -70 951 Balance sheet total 201 517 216 473 203 066 201 517 Non-interest-bearing liabilities 46 577 42 485 40 611 46 577 Capital employed 154 939 173 988 162 455 154 939 Closing equity 143 629 156 509 151 163 143 629 Average equity 149 480 163 176 152 700 149 480 Current assets minus inventories 64 891 74 065 67 445 64 891 Current liabilities 38 656 37 350 35 621 38 656 Liquidity ratio, % 168% 198% 189% 168% Equity 143 629 156 509 151 163 143 629 Total assets 201 517 216 473 203 066 201 517 Equity/assets ratio, % 71,3% 72,3% 74,4% 71,3% ===== SIDA 25 ===== 25 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Analysis of results, in summary 2025 2024 2024 Rolling Amounts in SEK thousand Note Jan-Mar Jan-Mar Full-year 12 mth Net sales 2,3 20 007 21 684 86 852 85 175 Cost of goods and services sold excluding depreciation -1 328 -1 284 -5 556 -5 600 Operating costs excluding depreciation -23 329 -20 305 -78 883 -81 907 Capitalized development expenses 2 961 2 974 10 967 10 955 EBITDA -1 689 3 069 13 379 8 621 Total depreciation excluding acquired immaterial assets -4 761 -5 290 -20 362 -19 833 Total depreciation acquired immaterial assets -601 -605 -2 431 -2 426 Operating profit/loss -7 051 -2 826 -9 414 -13 639 ===== SIDA 26 ===== 26 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Financial glossary 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, and therefore license fees are not followed up using the definition of ARR in this segment. 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. Earnings before interest, depreciation and amortization (EBITDA) Profit/loss before financial items and depreciation. This key indicator 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. 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. 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. Average equity The average equity was calculated as equity for the last four quarters divided by four. 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. Liquidity ratio Current assets excluding inventories divided by current liabilities. This key figure shows the group’s ability to pay in the short term. 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. ===== SIDA 27 ===== 27 Interim Report Jan – Mar 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Earnings per share after dilution Profit/loss for the period divided by weighted average number of shares. Earnings per share before dilution Profit/loss for the period divided by average number of shares. Return on equity Profit/loss after tax divided by average equity. This key indicator 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. Working capital Current assets less current liabilities. This measure shows the capital a company needs to finance operating activities. 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. 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. Operating profit/loss Profit/loss before net financial items and tax. A measure of a company’s profit before interest and taxes, i.e., the difference between operating income and operating expenses. 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. 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.