Realfiction (REALFI) Status Update summary

Technology and Product Development

• Focus has shifted from legacy 3D display products to Directional Pixel Technology (DPT), enabling glasses-free, multi-user 3D with no resolution loss and advanced multi-view capabilities.

• DPT uses a spatial light modulator (SLM) to direct light electronically, allowing for dynamic, high-resolution, multi-user 3D and 2D multiview experiences.

• The SLM is being iterated to address image imperfections and integrate ferroelectric crystals (FLC) for higher speed and more features, with GoWorld leading development at minimal cost to the company.

• DPT is compatible with major display technologies, including LCD, OLED, LED, and MicroLED, and can be modular for large-scale displays.

• AI is seen as a future driver for content and software, with current focus on hardware integration in display panels.

Business Model and Partnerships

• The business model is based on technology licensing to display manufacturers, with revenue expected from upfront NRE fees and per-unit licensing as products reach mass production.

• Key partnerships include GoWorld (panel manufacturing), PlayNitride (MicroLED collaboration), and AmTRAN (legacy product manufacturing and future integration).

• GoWorld provides significant development resources for SLM iterations, while PlayNitride collaboration led to the first glasses-free 3D MicroLED display, attracting industry attention.

• Negotiations with large panel makers are ongoing, with cultural and industry skepticism being gradually overcome through demonstrations and partnerships.

• IP strategy emphasizes maintaining broad licensing rights, balancing customer exclusivity demands with the goal of wide DPT adoption.

Commercialization and Financial Outlook

• First DPT revenue came from a confidential entertainment industry project requiring multi-view 2D, with successful POC delivery.

• NRE and upfront payments from multiple customer projects are targeted for 2025–2026, with volume-based licensing revenue expected from late 2026 or early 2027.

• Current SLM is sufficient for some deals, while new iterations will expand capabilities and address specific customer requirements.

• The ongoing rights issue is 60% guaranteed, providing a chance to reach break-even even at this level, with further subscription increasing growth potential.

• Confidence remains high in converting current project discussions into concrete agreements, with ongoing efforts to onboard new clients.