Interim report
April - June 2024
XMReality Interim report
Group overview, April - June 2024
For the first half of the year, the order intake increased by 31.3 percent compared to the same period last year, but decreased slightly for the quarter. Net sales decreased by 12.6 percent for the half-year compared to the same period last year and for the quarter, net sales decreased by 17.3 percent compared to Q2 2023. Costs fell by 13 percent for the quarter and for the half-year, they decreased by 16 percent compared to the previous year.
The Quarter April - June 2024, The Group
- Net Sales amounted to SEK 4,086 thousand (4,939)
- Costs totaled SEK -14,759 thousand (-16,979)
- The operating loss before taxes was SEK -8,106 thousand (-9,414)
- Cash flow was SEK 3,210 thousand (-8,741) and the equity/assets ratio at the end of the period was -20.0 (43.1) percent
Order intake during the quarter was lower than the corresponding level in Q2 2023 and decreased by
10.6 percent to SEK 1,983 thousand (2,217). Net sales decreased by 17 percent to SEK 4,086 thousand (4,939) compared to the previous year. Costs for the half-year decreased by 5.2 MSEK compared to the same period last year. During the first half-year,one-time costs equivalent to 3.7 (0) MSEK were recognized, where a large part is related to strategic development. Excluding one-time costs, the decrease was 8.9 MSEK in the first half of 2024 compared to the previous year. The annual recurring revenues (ARR) decreased by 13 percent and amounted to SEK 15,885 thousand (18,252) compared to Q1 2023. The gross margin remained high, 97 (96) percent for the quarter. The order backlog, order intake that remains to be recognized as revenue, increased to SEK 10,370 thousand (10,139) compared to Q2 2023. The quarter shows a positive cash flow of SEK 3,210 thousand due to short-term loans of 6.4 MSEK being taken.
The period January - June 2024, The Group
- Net Sales amounted to SEK 8,796 thousand (10,061)
- Costs totaled SEK -26,374 thousand (-31,583)
- The operating loss before taxes was SEK -12,384 thousand (-16,007)
- Cash flow was SEK 2,320 thousand (6,906)
- Order intake amounted to SEK 8,333 thousand (6,346)
Company Goal
XMReality's financial goal, to start generating positive cash flow by the end of 2024, remains.
1
XMReality AB (publ) | Interim report April - June 2024
Notable events
Notable events during the period
- The Board of XMReality AB (publ) decided, conditional on the subsequent approval of the Extraordinary General Meeting, on a new issue of shares of approximately 36.7 MSEK with preferential rights for the Company's existing shareholders. Additionally, bridge financing of approximately 8 MSEK was raised to finance the short-term liquidity needs before the proceeds from the Rights Issue are received.
- XMReality signed a new agreement with HIMA Americas, a leading provider of smart secure automation solutions for industrial applications.
- The Board of XMReality chose to prepare a balance sheet for liquidation purposes for precautionary reasons. The balance sheet showed that the share capital in XMReality was intact.
- XMReality received a shareholder loan of 1.5 MSEK in May. This came after the company communicated on April 12 that the existing working capital was sufficient until mid-May.
- XMReality signed a new customer agreement with Mission Restaurant Supply, one of the largest resellers of restaurant equipment and supplies in the USA.
- Amico Group of Companies, a leading manufacturer and global distributor of hospital equipment, is implementing XMReality to improve support for medical equipment.
Notable events after the period
- XMReality signed an agreement with the global technology company GiveX to assist them with support for their 132,000 active trading locations.
2
XMReality AB (publ) | Interim report April - June 2024
CEO comments
Continued positive influx of new customers and a 31 percent increase of order intake for the first half of the year compared to 2023.
Summer is here and we have closed an intense Q2. The order intake for Q2 ended at 1,98 MSEK, a decrease with 10.6 percent compared to Q2 2023. For the first half of the year the order intake ended at 8,33 MSEK, which is an increase of 31.3 percent compared to the first half of 2023. Our ARR decreased slightly compared to the first quarter, but increased marginally the last month of the quarter. New sales are more predictable than before and less fluctuating, which means that we will get a more even distribution of income over time, even if we still have a larger proportion of contracts in the last quarter. We also think that the ARR that we now have is stronger in the sense that the customers who are now coming in have succeeded in getting XMReality into their routines and processes in a significantly better way.
We continue according to the new strategy, and we subsequently see an increased number of new customers and also an increasing number becoming customers completely without sales efforts via "self service". Even though the summer is always a bit slower, during the quarter we closed 12 new Enterprise customers and some new online customers thanks to the updates both on the web and in the ease of getting started with the service. If we sum up the half year, we have thus gained more than 30 new customers so far, to be compared with 45 new customers for the whole year 2023. We also note an increased usage and an increased customer satisfaction, which has led to many customers recommending us to others, just to name the latest example ICETRO, which also displays our solution on its website.
In terms of the product, during Q1 and Q2 we worked intensively on a major update. The release that came just after the end of Q2 is the biggest change we have implemented in 2.5 years - when
we came out with the current generation of the desktop apps. Now we are launching face-chat and multi-cam and many more functions that, together with all the tools you already have in an XMReality call, open up for completely new use cases for our customers and a great potential for many new customers.
We still have some way to go until we reach the goal of becoming cash flow positive and in the meantime the company still has a capital need. The board of directors have proposed a preferential rights issue, provided approval at the extraordinary general meeting. The rights issue is secured to 70 percent through offsetting owner's loans, subscription obligations from owners and guarantees. This rights issue will give the company a much needed capital addition to continue moving forward with our updated product.
The company continues to act on the cost side to get to a positive cash flow during 2024. This means that during the quarter, and continuing during Q3, we carry out another large adjustment of our running costs. Most of the cost adjustments will come into effect at the end of Q3. When all the adjustments are completed, this will result in an annual cost base that corresponds to our revenue.
In our industry, there are ongoing discussions about structural transactions, and XMReality will actively seek such opportunities with the aim of creating shareholder value.
Autumn has historically been a good for XMReality and with some humility we look forward to turning to black numbers later this year.
Andreas Jonsson, CEO
Linköping August 1st, 2024
3
XMReality AB (publ) | Interim report April - June 2024
4
XMReality AB (publ) | Interim report April - June 2024
Financial basis for the interim report April - June 2023
Income statements in summary (SEKk), the Group
April - June
2024 | 2023 |
January - June
2024 | 2023 |
Full year
2023
Net sales | 4 086 | 4 939 | 8 796 | 10 061 | 19 788 |
Capitalized production costs | 2 426 | 2 490 | 4 850 | 5 298 | 9 572 |
Other operating income | 138 | 134 | 340 | 215 | 471 |
Total income | 6 651 | 7 563 | 13 986 | 15 573 | 29 831 |
Raw materials and consumables | -122 | -213 | -259 | -373 | -915 |
Other operating expenses | -6 731 | -5 558 | -9 238 | -10 226 | -17 175 |
Employee benefits expenses | -6 393 | -9 675 | -13 578 | -17 864 | -36 685 |
Depreciation, amortization and | -1 539 | -1 418 | -3 036 | -2 769 | -5 784 |
impairment of property plant and | |||||
equipment and intangible assets | |||||
Other operating costs | -74 | -32 | -132 | -69 | -319 |
EBIT
Financial income and similar profit items
Financial expenses and similar loss items
-8 208
159
-56
-9 332
1
-83
-12 257
160
-288
-15 728
3
-282
-31 046
191
-441
Profit(-loss) after net financial income
Income tax expense for the period
Profit(-loss) for the period
Earnings per share before dilution (SEK)1
Earnings per share after dilution at the end of the period1
-8 106
0
-8 106
-0,08
-0,08
-9 414
0
-9 414
-0,11
-0,10
-12 384
0
-12 384
-0,12-0,12
-16 007
0
-16 007
-0,18
-0,18
-31 297
0
-31 297
-0,35
-0,34
1 Number of shares, The Group and the Parent company see page 9.
5
XMReality AB (publ) | Interim report April - June 2024
Balance sheets in summary (SEKk), the Group
Assets
Non-current assets
Capitalized development costs Equipment, tools and systems
2024-06-302023-06-302023-12-31
21 877 | 18 733 | 20 030 |
59 | 132 | 91 |
Total non-current assets | 21 936 | 18 865 | 20 121 |
Current assets | |||
Inventories | 344 | 189 | 358 |
Current receivables | 3 458 | 4 165 | 5 040 |
Cash and bank balances | 4 237 | 14 702 | 1 980 |
Total current assets | 8 039 | 19 056 | 7 378 |
Total assets | 29 976 | 37 921 | 27 499 |
Equity and liabilities | |||
Equity | -5 981 | 16 333 | 6 752 |
Non-current liabilities2 | 833 | 2 500 | 1 667 |
Current liabilities2 | 35 123 | 19 088 | 19 080 |
Total equity and liabilities
2 Of which interest-bearing liabilities Collateral provided
of which in own custody Contingent liabilities
29 976
- 500
-
000
0 Inga
37 921
- 167
-
000
0
Inga
27 499
- 333
-
000
0 Inga
Statements of change in equity in summary (SEKk), the Group
April - June
2024 | 2023 |
January - June
2024 | 2023 |
Full year
2023
Balance at the beginning of the period | 2 127 | 24 387 | 6 752 | 31 169 | 31 169 |
New share issue (net of issue costs) | 0 | 1 372 | -288 | 1 186 | 6 865 |
Exchange rate difference | -2 | -11 | -61 | -15 | 15 |
Profit(-loss) for the period | -8 106 | -9 414 | -12 384 | -16 007 | -31 297 |
Balance at the end of the period | -5 981 | 16 333 | -5 981 | 16 333 | 6 752 |
Number of shares, The Group and the Parent company see page 9.
6
XMReality AB (publ) | Interim report April - June 2024
Statements of cash flow (SEKk), the Group
Operation activities
Cash flow (-used) before changes in working capital
Change in working capital3
Cash flow from (-used in) operation activities
Cash flow from (-used in) investing activities Cash flow from (-used in) financing activities
Cash flow from (-used in) the period
Exchange rate difference
Cash and cash equivalents at the beginning of period
April - June
2023 | 2022 | |
-6 694 | -8 097 | |
12 746 | 928 | |
6 052 | -7 168 | |
-2 426 | -2 513 | |
-417 | 955 | |
3 210 | -8 727 | |
-2 | -14 | |
1 029 | 23 443 | |
January - June | Full year | |
2023 | 2022 | 2022 |
-17,436 | ||
-9 672 | -13 428 | -25 824 |
17 963 | 22 013 | 21 083 |
8 291 | 8 585 | -4 741 |
-4 850 | -5 348 | -9 622 |
-1 121 | 3 686 | 8 532 |
2 320 | 6 923 | -5 832 |
-63 | -18 | 15 |
1 980 | 7 796 | 7 796 |
Cash and cash equivalents at the end | 4 237 | 14 702 |
of period |
3The amount includes 19,307 in final payment of the new issue in January 2023.
4 237 | 14 702 | 1 980 |
Parent company income statements in summary (SEKk)
Net sales
Capitalized production costs Other operating income
Total income
Raw materials and consumables Other operating expenses Employee benefits expenses
Depreciation, amortization and impairment of property plant and equipment and intangible assets
Other operating costs
EBIT
Financial income and similar profit items
Financial expenses and similar loss items
Profit(-loss) after net financial income
Group contribution received
Income tax expense for the period
April - June
2024 | 2023 | |
3 992 | 4 900 | |
2 426 | 2 490 | |
154 | 137 | |
6 572 | 7 528 | |
-122 | -188 | |
-8 555 | -7 268 | |
-4 830 | -7 552 | |
-1 534 | -1 414 | |
-74 | -32 | |
-8 543 | -8 927 | |
159 | 1 | |
-56 | -83 | |
-8 441 | -9 009 | |
0 | 0 | |
0 | 0 | |
January - June
2024 | 2023 |
8 681 | 10 089 |
4 850 | 5 298 |
356 | 218 |
13 886 | 15 604 |
-259 | -349 |
-13 256 | -13 604 |
-9 982 | -14 757 |
-3 028 | -2 765 |
-132 | -69 |
-12 770 | -15 940 |
160 | 3 |
-288 | -282 |
-12 898 | -16 219 |
0 | 0 |
0 | 0 |
Full year
2023
19 565
9 572
488
29 625
-797-24 289 -29 635 -5 772
-319
-31 186
191
-441
-31 437
0
0
Profit(-loss) for the period | -8 441 | -9 009 |
Earnings per share before | -0,08 | -0,10 |
dilution (SEK)4 | ||
Earnings per share after dilution | -0,08 | -0,10 |
at the end of the period4 |
4Number of shares, The Group and the Parent company see page 9.
-12 898
-0,12-0,12
-16 219
-0,19
-0,19
-31 437
-0,35
-0,34
7
XMReality AB (publ) | Interim report April - June 2024
Parent company balance sheets in summary (SEKk)
2024-06-302023-06-302023-12-31
Assets
Non-current assets
Capitalized development costs Equipment, tools and systems Financial assets
21 877
28
51
18 733
82
51
20 030
54
51
Total non-current assets | 21 956 | 18 866 | 20 134 | ||||
Current assets | |||||||
Inventories | 344 | 189 | 358 | ||||
Current receivables | 3 025 | 3 944 | 4 595 | ||||
Cash and bank balances | 4 034 | 13 898 | 1 832 | ||||
Total current assets | 7 403 | 18 031 | 6 785 | ||||
Total assets | 29 359 | 36 898 | 26 919 | ||||
Equity and liabilities | |||
Equity | -6 684 | 16 040 | 6 501 |
Non-current liabilities5 | 883 | 2 550 | 1 717 |
Current liabilities5 | 35 161 | 18 308 | 18 701 |
Total equity and liabilities
5 Of which interest-bearing liabilities Collateral provided
of which in own custody Contingent liabilities
29 359
- 500
-
000
0 Inga
36 898
- 167
- 000
0 Inga
26 919
- 333
-
000
0 Inga
Parent company statements of change in equity in summary (SEKk)
Balance at the beginning of the period
New share issue (net of issue costs)
Profit(-loss) for the period
Balance at the end of the period
April - June
2024 | 2023 | |
1 757 | 23 677 | |
0 | 1 372 | |
-8 441 | -9 009 | |
-6 684 | 16 040 | |
January - June
2024 | 2023 |
6 501 | 31 073 |
-288 | 1 186 |
-12 898 | -16 219 |
-6 684 | 16 040 |
Full year
2023
31 073
6 865
-31 437
6 501
Number of shares, The Group and the Parent company see page 9.
8
XMReality AB (publ) | Interim report April - June 2024
Parent company statements of cash flow (SEKk)
Operating activities
Cash flow (-used) before changes in working capital
Change in working capital6
Cash flow from (-used in) operating activities
Cash flow from (-used in) investing activities
Cash flow from (-used in) financing activities
April - June
2024 | 2023 | |
-7 034 | -7 695 | |
12 961 | 607 | |
5 927 | -7 087 | |
-2 426 | -2 490 | |
-417 | 955 | |
Januari - June
2024 | 2023 |
-10 340 | -13 644 |
18 513 | 22 132 |
8 173 | 8 489 |
-4 850 | -5 298 |
-1 121 | 3 686 |
Full year
2023
-25 976
21 827
-4 149
-9 572
8 532
Cash flow from (-used in) the period | 3 085 | -8 623 | 2 202 | 6 877 |
Cash and cash equivalents at the | 949 | 22 521 | 1 832 | 7 021 |
beginning of period | ||||
Cash and cash equivalents at the | 4 034 | 13 898 | 4 034 | 13 898 |
end of period | ||||
6The amount includes 19,307 in final payment of the new issue in January 2023.
-5 189
7 021
1 832
Number of shares, the Group and the Parent company
Average number of shares during the period7
Shares outstanding at the end of the period7
April - June | January - June | ||
2024 | 2023 | 2024 | 2023 |
104 987 931 | 89 367 862 | 104 987 931 | 87 080 165 |
104 987 931 | 91 153 047 | 104 987 931 | 91 153 047 |
Full year
2023
90 355 238
104 987 931
- New issue of 36,828,000 shares subscribed in January 2023.
- New issue of 2,377,778 shares subscribed in June 2023.
- New issue of 13,834,884 shares subscribed in November 2023.
9
XMReality AB (publ) | Interim report April - June 2024