Elliptic Labs (ELABS) Investor Update summary

Platform and market adoption

• AI Virtual Smart Sensor Platform uses AI, ultrasound and sensor fusion across gesture, proximity, presence, breathing and heartbeat detection, with deployment in over 500 million devices and no added sensor hardware.

• Smartphone adoption includes 137 models launched, 41 new launches in 2024 and 3 of the top 5 OEMs; laptop adoption includes 42 models launched and 4 of the top 6 OEMs.

• Deep chipset integration and partnerships with Qualcomm and MediaTek support market position and create high entry barriers; the platform is backed by several hundred patents.

• Technology has expanded from proximity and presence sensing to the AI Virtual Seamless Sensor and new capabilities such as contextual intelligence.

Product innovation and Lenovo partnership

• Lenovo Smart Share, launched on ThinkPad X1 Carbon Aura Edition PCs, uses the AI Virtual Seamless Sensor for tap-based sharing between iOS and Android devices and laptops.

• The AI Virtual Tap Sensor combines multiple laptop sensors and machine learning; it does not depend on ultrasound and can support apps and use cases beyond picture sharing, including connecting mice by tap.

• Lenovo positions Smart Share as an “AirDrop killer” to build ecosystem appeal, particularly among younger iPhone users; joint marketing and positive retail feedback underscore its strategic role.

• Smart Share is not exclusive to Lenovo; additional OEM partnerships are expected.

Financial performance

• Q2 2024 revenue was NOK 33.9 million; total revenue and other operating income was NOK 34.2 million.

• Q2 2024 EBITDA was NOK 6.4 million and profit before tax was NOK 6.2 million.

• Cash and cash equivalents at quarter-end were NOK 96.9 million; total assets were NOK 356.5 million and equity NOK 316.5 million as of June 30, 2024.

• Net cash flow from operating activities in Q2 2024 was NOK -12.8 million, reflecting investments in growth.