Hello, and welcome to this call from us, Zwipe. This is Robert Puskaric, the CEO, and this presentation is about shifting strategy to focus on access control. If I just flip the slide here, a quick disclaimer, and today's agenda and presenters. So, you have myself, Robert, CEO and President. You also have Danielle Glenn, our CFO and head of investor relations, and we also have our incoming CFO and head of investor relations, Hugo Petit, who is the moderator for this session. What we will do is we will have a Zwipe in brief, quickly, Zwipe Pay, Zwipe Access, and why we do this change now. So let's embark on this journey. As of today, we have announced a company restructuring with a new strategic direction, which is creating a path to profitability. The rationale for this new direction, this new strategic direction, is that we have concluded with a number of different data sources that there is a lack of the needed market traction that we were anticipating in biometric payment cards. I'm going to come back on that. We do also see that there is tangible commercial progress in access control with all the efforts that we have done so far. And again, we didn't focus on access control as a company, basically a little bit more than a year ago, because then the main focus was actually pay. We also see that there are things that are working in our direction, when it comes to access being a quicker path to profitability, and that is that there is an EU directive called NIS2, which is about cybersecurity. That is from October, and that works in our favor when it comes to two-factor authentication in the cybersecurity space. We also feel that we need to allocate our financial resources that have been given to us to areas where we see we can have immediate commercial potential and not kind of wait further to see if the pay market will pick up or not. And focusing on access is creating a more viable and significantly faster path to profitability. We do believe that, you know, being bold and making bold decisions and being decisive is in the best interest of our company and the shareholders. So that's why we have decided to embark on this road and communicate this today. If we dig further into this, you all know that we have been presenting ourselves as a technology company, you know, that have a complete biometric system on card. That is both hardware, software, solutions for power harvesting, you know, management system, algorithms, manufacturing and packaging methods and processes, and so on. And the good thing about this is that our biometric authentication technology can be used for two different tracks. One was always pay, and the other one that we have done lately, or the last year, started talking more and more about, is access. And they are both leveraging the same core technology platform, and in reality, that has not changed. What has changed, however, is that during the year, and since we you know did the previous strategy, which was late 2022, with all the facts and inputs and data points that we had then, the market was basically pointing at that in the time frame of, you know, 2026, there would be a market out there of biometric payment cards shipped in the range of 250 million cards in 2026. Then, of course, then that was brought down as spring 2023, which is a darker color pillar that you, that you see in this graph in front of you. And then in October 2023, ABI came out with a research projection, which was kind of really, really, really lowering the outlook for how biometric payment cards will eventually pick up. We, of course, do believe that the market will be there, but it will be somehow more of a niche market. And it's not kind of what we do, but it's that is what everybody is seeing out in the marketplace in terms of our competitors and customers as well. So, the adaptation and the uptake of biometric payment cards that was then anticipated to, you know, basically become 1 billion cards shipped, in the future, is now picking up much, much, slower. So this is, of course, one great input, that is impacting us a lot. And then you would of course ask yourself, but, but you have been saying that, you know, there is a, that the 2023 was the year of inflection. And honestly, we, Zwipe, me, myself, and my colleagues in the industry, we really believed and worked accordingly to those lines. Everything was geared up, everything was prepared, all the commercial contracts that we needed with different card makers around in the world, payment processor, companies that needed to prepare, everything was geared up in order to create this market. Looking at the first half of 2023 versus 2022, there was good traction. There was a number of pilots that were communicated, there were six commercial launches that were communicated, and Zwipe actually had two out of the six commercial launches that we communicated to the market in May. So of course, we felt that we had a good momentum in all the dialogues that we had with our customers, it felt that it's really going to happen. But what then happened in the second half was that there were no new announcements of new pilots by anyone. We didn't manage, together with our partners, to sign up any additional pilots or commercial launches of magnitude that will make a bigger difference for the second half. So basically, it basically stopped by half year. We couldn't replicate and move forward faster as we were planning to do for the second half. So we raised capital to the extent of NOK 35 million that we received in December, adding to the cash at hand, that was NOK 48.3 million by the end of Q3. And of course, we intended to use these proceeds during Q4 in the way that you see displayed in front of you, which was, you know, spread across both Pay and Access for the different categories, which was both operational supply chain expenses, go-to-market acceleration, and also further development that was needed for both Pay and Access. But with all the indicators at hand, the way the second half panned out and looking at the market in broad with all our partners, competitors, suppliers, we cannot continue according to this path. So our best assessment starting 2024 is that we should focus all the financial, human, and technical resources that we have at Zwipe Access, which has a much higher profitability and a near-term commercial success that we see. That is a responsible action from our side to change gear and go for where we see success and commercial profitability. Next one, to talk more about Zwipe Access then, because that is where we now embark heavily, is that we have seen a better commercial progress in 2023. We have communicated a commercial order from a globally well-known Swedish consumer tech company. We have, in total, more than 60 proof of concepts and testings in progress or in pipe with different partners around the world. And we do have top tier end user enterprises consisting of global cloud service providers and Fortune 100 companies, also including ASSA ABLOY and Berkshire Hathaway Energy Group. We have also talked about that we have opportunities that we are working on, which is multiple U.S. airports. Some of them we have named, but we have many more in the pipe as well, especially connected to what Tadera and Safeguard are doing in U.S. But we also have a unique situation in Sweden that has been granted to us when it comes to compatibility with readers that are installed in Swedish government agencies and publicly held, owned, or government-owned enterprises or controlled and also critical infrastructure operators of different kinds that we're compatible with. So there are very good end user opportunities that we're actively working on that is in a totally different magnitude of interest from the end user enterprise, from the installers, from the system integrators, than what we see on the pay side. We have signed more than 30 go-to-market partners, or about to sign in Europe and US, and those are both distributors, value add distributors, it's installers, and it's security system integration companies that we're working with. And just to mention a few, Tadera, which was before Civix, we have Schneider Electric, we have M.C. Dean, Matrix, Fair Quant Data, Oloid, and CardLogix, and also to mention the Swedish company, AWT, that we have also talked about. Safeguard that has been doing a test in the U.S., an extensive test at Richmond Airport. That report is expected to be released any day, which we will then, of course, communicate to the market as soon as we can. And that will, of course, work in our favor in approaching and basically signing up the U.S. airports that we have been working with. And then again, the offering that we have complies extremely well with the EU NIS2 Directive on cybersecurity that was released on October seventeenth. That will be a potential driver that works in our favor and in our direction. And again, it's a huge market out there, we know that. It consists, of course, of smart card access readers that are being deployed out there. And there are tens of thousands of units being shipped, and the installed base is just growing. And smart card readers out there will be the dominant reader type going forward. And we should bear in mind that there are basically 500,000 smart cards shipped annually in 2024. So, of course, we are making our way that these cards are not only kind of ordinary smart cards, but biometric access smart cards to increase security at critical sites. We do have a product that is very cost-effective. It's a cost-effective way of increasing the security, as we have said before, not having to replace the readers, but rather, just kind of changing the cards. It's highly secure, it's GDPR compliant, and you can use it basically in any vertical. It's fully validated to work with leading access control systems of HID and LEGIC, and it can be implemented extremely fast. We should also know that our card, compared to our competitors in this market space, especially the kind of the smaller tech companies that are out there, our card has gone through the rigorous tests of Mastercard and Visa, which of course, from a quality, functionality, and durability point of view, is saying something about what we have to offer. So, I think that is kind of our unique selling point versus many of the others. The value chain we have talked about before, we are, in this case, not selling chipsets to somebody that is making cards. We are actually making the finished product ourselves, and we are shipping cards to our partners, which are either distributors in different countries, then serving installers and system integrators, or we are in specific countries, maybe selling directly to system integrators and installers, but that is on a case-by-case basis. But the bigger difference is that, of course, the average sales price on a card versus component is much higher, and the margin is much better. So even if the total revenue is lower, that means that we still have a quicker path to profitability. And then we are working through different type of partnerships, when we're approaching the end user enterprises, and that you can see more on the left-hand side in terms of system integrators and installation companies. Next one is Zwipe going forward. So this is really wrapping it up, right? So that we try to get the final key takeaway here. I mean, focusing on Zwipe Access gives us a viable and faster path to profitability. We are absolutely convinced on this, and we have compared the two different tracks by keeping both alive, or going only on access. And in the near medium term, this is a much better path to profitability. We do have a complete and tangible traction, where we are near-term likelihood of substantial commercialization is definitely evident. We do believe, and I personally also believe, that biometric payment cards will finally happen one day. Maybe it will be more of a niche market, but the problem for Zwipe is that we can't sit and wait because our only source of revenue is biometric cards. So if access doesn't pick up, we need to put all our effort and all our money on where we can find profitability and a fast, faster path to financial stability. So with the access that we have communicated today and taken, the total operational cost saving is around NOK 40 million, versus in 2024, versus 2023. If you look at the total cash flow in 2024 and 2025, it is anticipated to be better than NOK 40 million than if we would have kept both pay and access control alive. So if you compare with what we have today, continue kind of progressing and trying to get business on both tracks, only keeping access from a cash flow perspective, 2024 and 2025, this is more than NOK 40 million, not better. So even with a lower top line revenue in absolute terms, a combination of the higher gross margin, and the lower operational cost that we are now executing on and taking out costs, also then including lower supply chain cash outflows, meaning that we need to buy less components and that, of course, improves the whole situation, when we focus only on Zwipe Access, becomes more financially viable and attractive for us, simple as that. And by this, we extend Zwipe's runway, that gives us financial flexibility to get to cash flow break even in 2025. So the recently completed rights issue should enable this path to profitability with the actions that we have now taken. So the near-term priorities in commercializing Zwipe Access is of course to close deals and announce major access pilots, but also commercial deployments with end user enterprises in the first half. So we need to prove ourselves in the first half, demonstrating commercial action traction. And this is well known to the entire team in Zwipe. There is no time to spare. We need to demonstrate commercial traction in first half on access, full stop. We also see that after first half comes second half, and what is in the plan is triple digit growth on access volumes in second half versus first half, with everything that we have going that we plan to execute on. And what we also have as a priority near term is that we are looking into if we can complement our product portfolio with offerings that goes beyond HID and LEGIC Advant in second half, meaning that we can access a broader and wider part, a bigger piece of the pie, if you put it that way, when it comes to access, and not stick to HID and LEGIC, but go beyond, meaning MIFARE DESFire. That is where we need to complement our offering. And of course, this we want to do by, you know, a stepwise approach, where we first find a way of complementing our portfolio without spending R&D money. In the second wave, if this all goes well, then we will bring forward a product of our own, that we can then offer to the markets. So that is the plan, these are the priorities, this is what we are executing on, and all of this will lead to a quicker path to profitability than earlier anticipated. So with this, I will end this presentation, and we will go into a Q&A session. Thank you for listening to the presentation, and then I will hand over to Hugo, who will be the moderator. Thank you, Robert. Let me just start trying to aggregate some of the questions that have come. One of the questions asked is, are you closing Zwipe Pay entirely, or are you just putting it on hold until the market is ready? I mean, we will maintain our Mastercard and Visa certification, of course, and we will continue to serve and fulfill purchase orders from Zwipe Pay customers that have already been certified, meaning that they need a minimum of support from us in order to convert what they buy from us to actual cards that they can ship to their customers. We will no longer spend resources assisting other smart card manufacturers in becoming certified or further develop the technology that we have. So, that will stop. And I mean, if there may be a sudden sign of mass demand, we could, of course, consider refocusing on Zwipe Pay again. I mean, all the technology development that we have been doing and that we are doing also on access, will still stay relevant, and it will benefit the pay offering as well, right? But as we see it right now, we don't see this scenario as likely for, you know, foreseeable future. So we still have the platform, it can still be used for two tracks. However, we will not put money into further developing pay and helping non-certified customers to become customers. That will stop. But the ones that are certified, we will absolutely obey their orders and fulfill them and ship whatever they buy from us. I hope that will. And how, what do you think about the timeline for any success, so to say, in the access market in terms of agreements or purchases? As I pointed out, I mean, we are working. We have a number of activities out there in terms of engagement when it comes to proof of concepts and testings. We have one commercial order, and there are many activities. So, I definitely anticipate that we will have, you know, commercial traction to communicate during Q1 with everything that we have in the pipe. Yes. Okay, thank you. Let's see. Another question that arise, and I think you partially already commented on it, is: How can Zwipe maximize the value that already has been built into pay? How we can maximize the value that have been built into Pay? Whoa, I don't think- I think you already understand, because it's the same technology we use- Yeah, yeah. We utilize. Of course. No, no, no. I mean, of course, we have a patent portfolio, and we have—you know, there are so many commonalities between these two tracks. So, of course, we will piggyback on everything that have been done. And again, we will deliver on orders from certified customers. So, of course, we will continue fulfilling those shipments. Absolutely. Let me see. You mentioned that you aim for break even somewhere during 2025. Can you say something more about what level of revenue you need to get there? Yeah, I mean, I can comment on this one. We don't give financial targets, but the bottom line is significantly lower. Revenue is needed in 2024 and 2025 to get us to break even, because of higher margins and lower costs. Also playing a role here, you know, and I'll comment a little bit on ASPs and margins. They are simply put, much more attractive in the Zwipe Access-only business. ASPs are typically slightly higher than $30, and margins are expected to be higher than 50%. Okay. Can you say something about the main competitors within the access space, and compared to them, what is our competitive advantage? Yeah, I can comment on that. I mean, much like in payment, there are two categories of competitors, right? There are the large card makers, and I don't need to kinda mention those, but there are three big ones in the world. And then there are smaller, focused, more kind of startups, more like ourselves. And I would say that we are ahead of the large players in terms of product readiness on access, and we have actively been pushing it. And again, it's a totally different go-to-market model than on pay. And compared to the smaller startups that are more like us, I would say that we have a much higher credibility out in the market space than having a biometric card platform that has been certified by both Visa and Mastercard when it comes to pay. But what does that mean? I mean, that means that from a functionality, quality, and durability point of view, if Visa, Mastercard have approved you, of course, that means something in terms of how solid you are. Yeah, I would say so. Okay. That answers it. Here's another financial one. When do you expect the effect of the restructuring to have full effect? I mean, I would say mid-second quarter of 2024, and we, you know, in the fourth quarter of last year, saw the full effects of the restructuring that was announced on June 21. So the effects of this restructuring will be seen very quickly. Thank you. And I think this is maybe somewhat the last one. Let's see. Are Zwipe's competitors, and now we're talking about the competitors within the pay space, acting similar, meaning also conducting cost cutting and, and, and refocusing? Do you have any idea on that? I mean, we don't comment directly on what they are doing, right? I mean, that wouldn't be fair. But I mean, it is like that, the lack of market takeoff is, of course, impacting everyone in different ways, right? That are in like the biometric payment card space. It's, of course, impacting the big ones less because they have their biggest revenue source coming from shipping, you know, the bulk of what is shipped today when it comes to cards that are not biometric. But for the ones that have, you know, a big foot or big portion of their revenue expected to come from biometric cards, access or pay, or specifically pay, I would say, they are impacted in one way or another. So you can read their reports and see what they say. Thank you. Let's see. Do you have any—and I think this is the last question. Do you have any idea when you believe the pay market will take off? I mean, I do believe that the market will, of course, be there, one way or the other. But the thing is that we can't really wait and see, right? Because our revenue source is coming from one source only, and that's biometric cards. So I think it will be more of a niche market. I think definitely that it will happen, but we can't kind of be tied up to, you know, wait and see and tie up resources and capital waiting for that to happen. It simply doesn't work for us. Okay. Thank you. I think that was more or less it. There are no further questions. Okay. Okay, then, then I will say thank you for listening in to this call about our updated strategy, shifting gear, and focusing on access at Zwipe. Still kind of supporting shipments to customers that are certified, yes, absolutely. But again, our focus going forward will be around access, and this is a much faster route to profitability for us, with a much higher likelihood of success. So with this, thank you very much, and bye-bye!