Terranet AB - Interim report 2024

Significant events during the first quarter

Validation of Proof of Concept together with MobilityXlab partner
The validation of the Proof of Concept (PoC) has been completed. Following the installation of BlincVision in the partner’s vehicle and test environment, work has continued based on the defined requirements. The insights gained from the PoC have been valuable for the continued development of the product, and the validation now shows promising results in the defined test scenarios. The dialogue is ongoing, and Terranet intends to involve the partner in upcoming evaluations of the MVP.

Further development of existing prototype into MVP (Minimum Viable Product)
The development from prototype to MVP is taking place during the first and second quarters, in line with the communicated product development plan. The initial months of the year have focused on requirement specification, design work, and concept verification. The design has been improved to simplify integration and installation of the system in future partners' vehicles and test environments. Development efforts continue with a focus on increasing the system’s maturity and functionality.

New CEO

On March 10, Lars Lindell took over as the company’s new CEO. He brings many years of experience in leadership roles within tech and growth companies, along with broad international expertise and deep knowledge in sales and business models.

Significant events after the end of the period

New financing secured
On April 16, the company announced that the Board had decided on two directed share issues of SEK 25 million and a fully guaranteed rights issue of SEK 15 million. The directed issue consists of two parts, of which the first, amounting to SEK 9 million (fully paid as of April 30), falls within the authorization from
the 2024 AGM. The second part of the directed issue, along with the rights issue,
is subject to approval at the 2025 AGM.

Financial overview

	Jan-Mar 2025	Jan-Mar 2024	Jan – Dec 2024	Jan – Dec 2023
Revenue (TSEK)	0	308	283	834
Operating result (TSEK)	-9,176	-8,281	-35,808	-35,926
Financial items (TSEK)	-665	-1,065	-3,292	-37,190
Earnings per share (SEK)	-0,01	-0,01	-0,04	-0,15
Closing cash (TSEK)	4,952	29,918	18,541	29 006

Comment from the CEO

”2025 – the year BlincVision shows its value in customer environments”

The first quarter was marked by a clear focus on taking the next step in Terranet’s development. With a 2025 plan targeting an MVP for customers in the third quarter, the organization is fully committed to reaching our goals. Since stepping into the role as CEO in March, I’ve had the opportunity to get to know the business, the team, and our priorities. It’s clear that there is a strong drive to move the technology toward commercial use. In June, the management team and board will meet for this year’s strategy session – an important opportunity to set the direction for 2026 and create the right conditions for continued development and growth.

Strengthening BlincVision’s patent portfolio
As part of the MVP development, Terranet is addressing technical challenges within the application areas of event-based cameras. Since the design is now defined and the MVP is set to begin customer deliveries in the third quarter of 2025, it is crucial to intensify the work on IP protection. The company currently licenses patents related to the technology we are developing from third parties, while also continuously strengthening our own patent protection for BlincVision as an integrated part of the development process. This has already resulted in proprietary patent applications, and the work to build a strong, in-house portfolio within event-based camera technology is ongoing.

Development and commercialization progressing according to plan
The Proof of Concept report for our partner in MobilityXlab has now been completed. The report confirms that BlincVision performs well even in demanding test scenarios, while also identifying areas for further development. The collaboration has been highly valuable and provides important insights for continued product development. The dialogue with the partner continues, with the aim of including them in the upcoming evaluation of our MVP.

During the quarter, development efforts have primarily focused on advancing the prototype toward an MVP, through testing in both indoor and outdoor environments, and by improving both software and hardware.

In the third quarter, our MVP will begin testing with a few selected partners. One of them is an industrial player in the mining sector, with whom a collaboration agreement has already been signed. A kickoff meeting has taken place, and the project requirements have been defined. We look forward to bringing the MVP to the market and gaining a clearer picture of how the technology delivers value in real-world applications.

A strong financing round
After the end of the quarter, we completed a successful financing round for the company. A total of SEK 40 million was secured, consisting of a directed issue of units in two parts totaling SEK 25 million and a fully guaranteed rights issue of units of SEK 15 million. The rights issue is being carried out to compensate shareholders who were unable to participate in the directed issue. Both issues were executed with a low discount relative to the average share price in the days preceding the board’s decision.

The first directed issue of approximately SEK 9 million was fully completed by the end of April, while the second directed issue will be executed following the Annual General Meeting on May 23. The rights issue – which, together with the second directed issue, is subject to approval at the AGM – will be carried out in the weeks following the meeting.

The unit issues also include TO9 series warrants, with a subscription period in the first half of December. If fully exercised, the warrants could provide the company with an additional SEK 15 million.

In the press release on April 16, we stated that the total financing, assuming a high exercise rate of TO9, is expected to be sufficient into the second quarter of 2026. There is always some uncertainty regarding the performance of the stock market and, as such, how much TO9 will ultimately contribute. We will adjust our spending to align with the financial reality at any given time.

One step closer to the customer
We have a clear goal ahead of us and an organization with the right skills and drive. With a stronger financial position, key partnerships, and rapidly advancing technology, we are well positioned to take the next step toward the market. I look forward to the continued journey together with the team, our partners, and our shareholders.

Lars Lindell
CEO
Lund May 19, 2025

This information is such that Terranet AB is required to make public in accordance with the EU’s Market Abuse Regulation (MAR). The information was made public by the Company’s contact person below on 19 May 2025, at 08.00 CET.

For more information, please contact:
Lars Lindell, CEO
E-mail: lars.lindell@terranet.se

About Terranet AB (publ) 
Terranet's goal is to save lives in urban traffic. The company develops innovative technical solutions for Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles (AV). Terranet’s anti-collision system BlincVision laser scans and detects road objects up to ten times faster than any other ADAS technology available today.
The company is headquartered in Lund, with offices in Gothenburg and Stuttgart. Since 2017, Terranet has been listed on Nasdaq First North Premier Growth Market (Nasdaq: TERRNT-B).

Follow our journey at: https://terranet.se/
Terranet financial reports: https://terranet.se/en/reports/

Certified Adviser to Terranet is Mangold Fondkommission AB, 08-503 015 50, ca@mangold.se.

Attachments

• Terranet Q1 Report 2025 ENG
• Terranet PM Q1_2025_ENG