Realfiction (REALFI) Investor update summary

Technology development and validation

• Focus is on validating the nematic SLM approach, seen as the key to overcoming manufacturing and scalability obstacles for DPT technology.

• Iterative development with Goworld is ongoing, with first samples produced and tested, and further refinements underway.

• External LCD specialists have confirmed technical feasibility for prototyping and industrial scale, with main risks in achieving ambitious contrast and viewing angle targets.

• Multi-user performance targets remain unchanged, aiming for support of five simultaneous users without compromising image quality.

• Milestones include completing the rights issue, demonstrating nematic DPT, increasing resolution, and preparing a trade fair-ready platform.

Commercialization and strategic review

• Strategic review is ongoing with Grant Thornton to identify commercial partners, including options for co-investment, licensing, or sale.

• Multiple dialogues are active with global electronics, display, and digital platform companies, but no binding offers or alternative financing have materialized.

• Customer and partner hesitancy is attributed to the need for further technical validation, especially regarding manufacturability and scalability.

• AUO and AmTRAN are not currently active partners but may re-engage if nematic SLM is validated.

• Legacy products are being licensed out to focus resources on DPT development.

Financing and rights issue

• The rights issue is proposed as the only viable financing option, with a minimum guaranteed subscription providing runway until June 2027.

• Additional capital raises may be needed if commercial milestones are not achieved by then.

• Terms from potential partners, such as the Chinese LED wall manufacturer, were rejected due to negative cash flow implications.

• Management and board are participating in the rights issue primarily through salary reductions, with a revised incentive program halving the original option allocation to reduce dilution.

• The revised incentive program aims to balance cash preservation, retention, and shareholder alignment, with options representing 7–10.7% dilution depending on subscription levels.