Interim report
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1 HALF-YEAR REPORT 2025
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2 3 Crunchfish announced a turnaround – third time’s the charm in the Q1 report. The new go-to-market approach has had an overwhelming reception in the market. Most importantly, India has taken it to heart and the National Payments Corporation of India is implementing the approach into their payment networks. This opens the market to sell Digital Cash wallets to all payment services providers in India. Furthermore, we have during this quarter widened the market to many other opportunities in the rest of the world. CRUNCHFISH CEO JOACHIM SAMUELSSON IN FRONT OF THE HEADQUARTER IN MALMÖ WITH TURNING TORSO IN THE BACKGROUND New go-to-market strategy is working decided to offer the payment networks the ability to receive for free as we then open the market for us to sell wallets to the payment service providers using that payment network. It is by selling wallets to payment service providers we can create a scalable business and it starts in India and with a referernce case from this leading market we can expand to other national or international payment networks. Broadening our offer We announced in June as we are rethinking payments for all types of retail payments – online, offline, and cash. With the Digital Cash Wallet it is possible for a payment service provider to strengthen the identity authentication of the payer. This is important to reduce potential fraud in online payments. Furthermore, for online payments we bring with our wallets load balancing and resilience. We annouced in June also a way to rethink cash payments. If a customer pays in a store with cash for goods and services it is typically not for the exact amount. The merchant then owes the customer money and this may be returned digitally instead of cash. Crunchfish delivers this use case also with our Digital Cash solution but equipping the merchants with wallets so they can pay digitally also. The Reserve Bank of India has expressed intrest in this use case and we are discussing a pilot with a fintech that has 200 000 merchants served by them. It is this use case that will be presented at the Asia Cash Cycle confrence in Bali in September and at the Americas Cash Cycle conference in Miami in November. A week after the release of the Q1 report I went to the Digital Currency Conference in Bangkok to announce the new go-to- market strategy which essentially is a new way to package and present our solution. Instead of marketing the whole solution as a package to payment networks and payment service providers we split it up into a receiving part for the payment networks and the sending or paying part for the payment service providers. There are two distinct actors in a payment ecosystem – payment networks and payment services. The role and responsibility of the payment network is to define the common standards of the payment network and to accept and process payments so that the money arrives to the recipient. On the other hand, there are payment services that enable users with the ability to pay. They need secure wallets so users cannot double spend, that is spend their funds more than once. By splitting up our product by offering the terminals to payment networks and wallets to payment services respectively we have a much better way to approach the market than trying to sell the whole system to either of these parties. The problem we have been facing for years is that neither part wants our whole system, but it resonates with the market when we have broken it up into parts. The go-to-market strategy is clear. First we have to approach the payment networks and enable it to receive payments. Then we can market wallets to all payment services that are using that payment network. To accelerate our market penetration we have
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4 5 Industry validation We are happy to note that Crunchfish approach is being validated by industry professionals. Recently, the International Monetary Fund (IMF) published a fintech note discussing the existing CBDC options for offline payments. Table 2 in the report clearly states what we have been saying for years that hardware-based Secure Element (SE) or Trusted Execution Environment (TEE) solutions are very challenging to scale. In parallel, two of the co-authors came out with a complementary 2-pager on Crunchfish Digital Cash solution as it was only briefly described in footnote 5 in the IMF paper. Another whitepaper is from Bank of Canada. It is a feasibility study on retail CBDC solutions. They refer to online CBDC solution although their finding can be generalized to offline. Bank of Canada recommend the MIT Digital Currency Initiative’s OpenCBDC 2PC (2 phase commit) architecture as the most promising for retail CBDC. They argue that it is of paramount importance to protect the integrity of the core ledger and propose therefore a ledger update in wallets as phase 1 and then after careful validation should the transaction be committed to the core ledger as the second phase. This approach is identical to the Reserve, Pay, and Settle approach we have been suggesting for years. There is an offline/ off-chain transactional update of ledgers in wallets as a first step and then there is a subsequent settlement on the core ledger. The transaction is an digital IOU (I Owe You) rather than a digital banknote. Crunchfish has also annouced a partnership with the Central Banking Standards Organization (CBSO), a global non profit dedicated to defining comprehensive technical and operational standards for central banks. By this collaboration we aim to integrate our archtecture into CBSO’s open, interoperable, holistic framework for Central Banking 4.0. Financing and closing remarks We are very happy that our new go-to- market announced last quarter is working. Payment networks are interested in integrating terminals and gateways which open their networks to sell wallets to the payment service providers on the payment network rail. To ensure that we have sufficient time to become cash flow positive by revenue from payment service providers equipping their users or merchants with Digital Cash Wallets we are exploring ways to finance the company. We have started several parallel processes early this year and at this juncture we have a number of options on the table besides asking our shareholders again for additional capital. The target is to extend the runway of cash into 2027 to suffice even in a worst case scenario. With the validations and positive signs of our approach from the industry, payment networks and service providers we are very much looking forward to a very busy time ahead. In September there are three payment conferences ahead of the Global Fintech Fest in Mumbai in early October where we have a great presence. Please make sure to follow our lead. “They say the shortest path between two points is a straight line. But what happens when the path is blocked? The river never stops flowing. It bends. It finds its way around. It takes a detour – not because it wants to, but because it has to. What looks crooked from above is the most efficient path for water. Nature adapts. It doesn’t give up. So do we. Some bonds cannot be broken. Some transactions are meant to happen – regardless of time, place or logic. The universe finds a way. When all else seems impossible. When hope is gone. Two points that are meant to meet will. Sooner or later. By Crunchfish’s way there is survivability in the face of failure. Now also on the application level by deep fintech from Crunchfish.” Rethinking Payments
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6 7 Rethinking Payments Online, Offline, and Cash Crunchfish is rethinking retail online, offline, and cash payments by enabling resilience and payment service availability on layer-2, regardless of network connectivity issues or server outages. From rural merchants in remote areas to urban customers impacted by network congestion or service disruptions, the ability to pay no matter what is rapidly becoming an essential feature of modern financial ecosystems. In today’s financial landscape, end users and merchants rely on a variety of payment options—cash, cards, and online methods—to facilitate transactions. Each of these payment methods offers unique advantages, yet they also come with inherent limitations that can hamper the overall transaction experience. - Digital Payments: Digital payment options, whether through e-wallets or mobile apps, have gained immense popularity. They enhance convenience and speed, but the reliance on a stable internet connection can be a barrier in various contexts. Digital payment systems can also create challenges regarding user privacy and data security, particularly when sensitive information is transmitted without adequate safeguards. - Card Payments: Card payments offer convenience and security but are not without their drawbacks. There is a credit risk for offline payments, and for mobile card payments it is typically not even allowed without internet connectivity. They rely heavily on third-party processors for authorization and settlement. This dependency can lead to transaction failures or delays—especially during network outages. - Cash Payments: While cash is widely accepted and provides immediate value exchange, it poses significant challenges for merchants. Handling cash involves logistical burdens such as ensuring sufficient change, managing security risks, and dealing with daily cash reconciliations. Additionally, cash transactions are not easily traceable, making them less favorable in an age that demands transparency. Crunchfish’s layer-2 solution Crunchfish’s Layer-2 solution revolutionizes the payments landscape by augmenting traditional cash, card, and online payment methods. By rethinking how we handle online, offline, and cash payments, Crunchfish enables a seamless transaction experience that enhances resilience and adaptability. With Crunchfish, transactions can be conducted on a layer-2 without sacrificing security or user experience. The solution incorporates layer-2 wallets, terminals, and gateways that allow users to make payments anywhere, anytime—whether connected to the internet or not. The Crunchfish Layer-2 solution helps merge the convenience of digital payments with the practicality of cash. Digital IOUs are used to facilitate secure transactions, ensuring that both merchants and consumers can trust the integrity of their payment methods. This also extends to interactions with various payment networks, allowing for comprehensive interoperability.
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8 9 By utilizing an isolated runtime execution environment, Crunchfish ensures that payment data integrity during cryptographic operations, at rest on device, and in transit between clients and to servers. The certified high level of security builds trust in both online and offline environments, empowering users to transact confidently. Crunchfish’s revolutionary layer-2 solution can be implemented incrementally in an evolutionary way, one payment network, payment application, and end user at the time. The competitive business model is attractive for all participants and stakeholders, promoting broader adoption and financial inclusion. As we move forward in an increasingly digital economy, the Crunchfish Layer-2 solution stands as a pivotal tool for rethinking the way retail payments are processed, making the payment experience smarter, safer, and more resilient than ever before. Rethinking Online Payments: Survivability in the Face of Failure – A Packet-Switched Approach Just as the internet transformed digital communications in the 90’s into a much more robust and resilient packet-switched approach introduces Crunchfish’s patent- pending Trusted Application Protocol (TAP) resilience to the application layer of, for instance, digital payments by designing payment traffic with a packet-switched communication architecture inspired by the TCP/IP protocols that built the internet. TAP ensures that payment applications function reliably even during backend server failures or disrupted network conditions. TAP works across proximity protocols (QR code, Bluetooth, NFC) and remote protocols (internet or SS7 signaling), making it transport-layer agnostic, ensuring secure end-to-end communication between clients as well as between clients and servers. With private key in a trusted client in a PKI-based architecture, TAP ensures secure communications in between clients and between clients and servers using software-based isolated runtime execution environments by virtual secure elements in the clients, offering unmatched security and scalability for both offline and online environments. Rethinking Offline Payments: Reserve, Pay, and Settle with Digital IOUs Built on a patented architecture, the Reserve, Pay, and Settle (RPS) model allows payment ecosystems to operate seamlessly offline by issuing Digital IOUs locally in trusted client devices. Crunchfish’s signature offline payment solution enables digital payments to function even when disconnected from backend systems or the internet. Consecutive offline payments on layer-2 are also supported by Crunchfish Digital Cash Layer-2 solution. These IOUs are reconciled securely when connectivity is restored, ensuring trust, scalability and interoperability across domestic and international payment networks. The patented solution is payment network agnostic and even makes diverse payment networks interoperable regardless if it is real-time payment networks (e.g., UPI, Pix), card networks (e.g., Visa, Mastercard), CBDCs, mobile money, stable coins, other cryptocurrencies, or closed-loop payment systems. Rethinking Cash Payments: Returning Change Digitally By providing digital change instead of coins or small banknotes, merchants can solve this pain point while reducing operational inefficiencies and logistical overhead. Leveraging Crunchfish’s offline payment technology, merchants sign Digital IOUs for returning exact change digitally, and customers only need offline terminals to receive the change. This decreases logistical challenges significantly surrounding coins and small denominations and reduces cash handling costs while simplifying the payment experience. It provides a natural fit for Central Bank Digital Currency (CBDC), allowing physical cash-backed change to be issued as CBDC. The Superior Approach Crunchfish shows with its Digital Cash Layer-2 (L2) solution a viable way forward with its groundbreaking, modular, and packet-switched architecture that augments any Layer-1 (L1) payment system with multiple desired design objectives. An L2 packet-switched architecture with wallets, terminals and gateways mitigates the inherent vulnerabilities in traditional L1 online payment systems. For online payments it provides resilience as well as load balancing as congestion can be avoided by batch processing during peak load. For offline payments, it brings many new use cases and for cash payments it enables return of change digitally. The modular approach: The L2 solution respects the roles and responsibilities of payment networks and payment service providers respectively by clearly separating the L2 wallet, terminal and gateway modules. This brings flexibility, scalability, and healthy ecosystem competition.
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10 11 The layered approach: An L2 solutions built on top of L1 payment systems provides multiple key design objectives, such as resilience, privacy, scalability, and interoperability, by enabling off- chain processing while still achieving reconciliation and settlement on the underlying L1 payment system. Any L1 Payment Networks can be augmented with a L2 solution. Hybrid architectures, e.g. a CBDC, card network or realtime payment system can be augmented by a L2 solution to achieve maximum scalability, security, and resilience. The packet-switched approach: Integrating a packet-switched architecture for a payment network ensures survivability in the face of failure, which is especially important for high-volume payment networks as it brings load-balancing to overburdening centralized servers. Bringing packet-switching to the higher-level application layer is just as groundbreaking as when the internet delivered packet- switching to the underlying communication layer. The privacy approach: Privacy should be offered for all payments, not just offline payments, by using banks and intermediaries to reconcile and pay for their end users by proxy. Offline use cases may provide complete anonymity if that is desired by the financial regulator. The universal and interoperable approach: By augmenting an underlying L1 payment system with an L2 solution it may work across devices, proximity methods, geographies, and demographics as well as cross-systems, cross-networks, and also cross-borders. The seamless approach: A hybrid payment system merges transactions that has been cleared offline in L2 with a subsequent L1 online settlement. The future of digital payments hinges on balancing cost, resilience, and seamless integration, bridging traditional infrastructure gaps while gearing solutions for next generation financial landscapes.
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12 13 Digital Cash in India India is the leading country when it comes to real-time payments. The Reserve Bank of India (RBI) and the National Payment Corporation of India (NPCI) are the two cornerstones of the Indian payment ecosystem. The Digital Rupee is one of the most advanced CBDC implementations globally and with 19,5 billion transactions in July, the Unified Payments Interface (UPI) is by far the largest real-time payment system in the world. Crunchfish has been focusing on India for over five years and has developed the Digital Cash products based on the needs and requirements in India. Digital Rupee During 2023, Crunchfish and IDFC FIRST Bank signed a software license agreement to integrate Digital Cash into the bank’s payment apps. As part of the Reserve Bank of India’s (RBI) Digital Rupee pilot, IDFC FIRST Bank upgraded its Digital Rupee app with support for Digital Cash functionality in Q4 2023. Digital Cash has been made available to IDFC FIRST Bank customers but is not yet interoperable with other Digital Rupee bank apps. The RBI is preparing to expand the scope and usage of the Digital Rupee by building a more robust and interoperable infrastructure that enables all participating apps to receive offline payments. A key part of this involves integrating an Offline Receiving Component directly into the Digital Rupee payment rail, establishing offline functionality as a core feature of the ecosystem. On the issuing side, it is the responsibility of the banks and Third-Party Application Providers (TPAPs) to equip their end-users with wallets and the ability to pay offline. This will represent a huge market opportunity for Crunchfish. Crunchfish and IDFC FIRST Bank are at the forefront of implementing and adopting this new architecture. As a result, Crunchfish have during Q2 deepened the partnership with IDFC FIRST Bank. With the Reserve Bank of India pushing for offline functionality and interoperability in the payment ecosystem, the existing software license agreement with IDFC FIRST Bank was extended for another two years, at the same commercial terms as when the initial contract was signed 2023. The extension of the Digital Cash agreement marks an important step toward scaling the solution, enabling significantly more users to pay offline with the Digital Rupee. Currently 17 banks are participating in the pilot, offering Digital Rupee wallets to customers. In addition to IDFC FIRST Bank this includes major players such as SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, Canara Bank, Union Bank, Bank of Baroda, IndusInd Bank, Punjab National Bank, Federal Bank, Karnataka Bank and Indian Bank. Also, non-bank payment platforms such as Google Pay, PhonePe, Amazon Pay, CRED, and MobiKwik, have been invited by RBI to participate in the Digital Rupee ecosystem, pending regulatory approvals. Crunchfish are in discussion with several of these banks and TPAPs for implementation of the new offline payment architecture. Besides IDFC FIRST Bank, Crunchfish expects to do early implementations with 1-2 other players, to prove the feasibility of the solution to NPCI. Once this is done, the entire market for Digital Rupee apps is open for Crunchfish.
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14 15 Unified Payment Interface Unified Payments Interface (UPI) is the world’s most successful real-time payment system. UPI was launched in November 2016 and in July had a transaction volume of 19,5 billion transactions per month. NPCI, which is the product owner of UPI, announced at the Global Fintech Fest (GFF) in Mumbai in September 2024 that it plans for an increase in the coming years to 100 billion transactions per month. To achieve this, offline payments are important for load balancing, resilience, and coverage in areas where internet connectivity is spotty or non-existent. The Offline Receiving Component infrastructure for the Digital Rupee is also highly relevant for UPI and is being considered between Crunchfish and NPCI, as part of the ongoing discussions. If fully implemented, Offline Receiving Component for UPI would enable an interoperable, more user friendly and secure offline solution than currently is available with UPI Lite X. At the same time, it would provide the same kind of business opportunity for Crunchfish, to provide offline wallet solutions to the many banks and TPAPs acting as UPI payment service providers. The software license agreement with IDFC FIRST Bank also covers the right for the bank to use Digital Cash on UPI. Similarly, the other banks Crunchfish is working with for the Digital Rupee will be offered to extend the license term to cover usage with UPI. Digital Cash in the Rest of the World Most of the world’s central banks are evaluating or preparing to launch CBDCs. Support for offline payments is on the agenda for most of these projects. In August the International Monetary Fund (IMF) published a Fintech Note that examines technology solutions for enabling CBDC operations in environments with limited or no connectivity. A key take-away from the paper was that solutions using virtual secure elements, such as Crunchfish Digital Cash, are secure and scalable, whereas hardware-based solution are challenging to scale.
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16 17 CBDC in the Rest of the World The IMF published in August a Fintech Note, like many other papers that cover offline payments, the IMF Fintech Note focused mainly on wallet-to-wallet considerations but also gives a light touch to other aspects that determines how implementable a solution is in practice. The IMF Fintech Note did establish that offline payment solutions using virtual secure elements are secure and scalable, whereas hardware-based solutions are costly and challenging to distribute and upgrade. Two of the co-authors of the IMF Fintech Note, have also published an add-on note that describes Crunchfish Digital Cash Layer-2 solution as a viable augmentation to any CBDC payment system with its novel packet-switched architecture delivered by a secure, scalable, interoperable, and cost- effective architecture. Both these papers are well in line with the merits of Crunchfish Digital Cash as a layer-2 solution augmenting the underlying layer-1 CBDC payment system with desired features. It is designed to respect the roles and responsibilities of payment networks and service providers. Whereas payment service providers equip users with Wallets to initiate and make payments, payment networks need Terminals and Gateways to receive and accept payments. This clear separation allows for flexibility, scalability, and healthy market competition by ecosystem participants and protects the integrity of the CBDC payment system from Wallet transactions initiated off the central ledger. The European Central Bank (ECB) is investing heavily in an offline payments project for the Digital Euro. Over 2 billion SEK is the estimated budget for the project. The ECB has chosen a solution where the security of offline payments is based on the use of hardware in the mobile phone. Just as IMF points out, Crunchfish also sees significant scalability risks with this approach because there is no existing ecosystem to distribute and update an offline payment application on hardware. Without an ecosystem where the solution can be distributed and updated, the solution will not be scalable to the wide range of mobile phones on the market. ECB has also announced that they want to offer conditional payments with the Digital Euro and are fostering innovation through the ECB innovation platform. The platform simulates the envisaged digital euro ecosystem, in which the ECB provides technical support and infrastructure for European companies to develop innovative digital payment features and services at European level. Crunchfish was one of almost 70 market participants that were selected by ECB to work with ECB to explore digital euro payment functionalities and use cases. During May, Crunchfish submitted demos of three offline payment use cases with online settlement, showcasing innovative implementations of digital euro conditional payments. The demos are using Crunchfish’s patented offline payment with online settlement. Findings from the pioneer projects will be published by the ECB on the ECB website on 26 September, and will be officially presented at the conference The Future of Payments-CBDC, Digital Assets and Digital Capital Markets. Crunchfish is in advanced discussions with an Eastern European central bank for a CBDC pilot. Crunchfish has teamed up with one of the dominating system integrators within CBDC implementations globally, and with a local technology provider. With this setup the consortium has a strong technical offering, including Crunchfish’s unique offline solution, combined with experience form CBDC pilot projects and a strong local representation. The board of the central bank will be presented with the viable solutions and providers during Q3. Based on recommendations from the board, one consortium will be selected, and contractual arrangements will be initiated. The pilot is planned to start during the second half of 2025, but based on previous experiences it might also slide over to 2026. Standards are critical for CBDC adoption because they ensure interoperability, security, and scalability across the payment ecosystem. By defining common technical and operational rules, all participants - banks, payment providers, merchants, and users - can transact seamlessly and securely, both online and offline. This shared foundation builds public trust, supports regulatory compliance, and enables innovation without fragmenting
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18 19 the market. The Central Banking Standards Organization (CBSO) is a global non-profit committed to defining standards for central banking operations and technology. Embracing open source, open banking, and holistic principles, CBSO guides central banks effectively toward Central Banking 4.0 and interoperable, secure, and stable financial systems. Crunchfish recently became sponsor of CBSO to advance global CBDC standards. An important opportunity for Crunchfish is commercial payment systems that facilitate a payment ecosystem. Several countries have a centralized payment switch that operates in real time, like UPI in India, which makes payment apps in the country interoperable with each other. Integrating an interoperable terminal module on the acquiring side in the payment ecosystem would have several advantages in terms of scalability, as much of the integration work would only need to be done once, compared to integrating with each of the payment service providers in the system. Crunchfish is in advanced discussions with several national switches. One is a leading country in Africa where the Rethinking Payments concept resonates very well with their ambitions. They will start design, implementation and testing second half of 2025. Two workshops have been conducted during the summer to start this work. Crunchfish’s new go-to market approach that enables a terminal module first with the payment network and then markets offline wallets to banks and TPAPs is very applicable here. SaaS Expand Agency continues to develop the markets in Africa and South America, with focus on telecom operators and technology providers to them. Currently they are working with a new telecom operator that plans to enter several countries in Africa, starting with Kenya and Malawi. The operator sees offline support as a critical feature to win market share. Another interesting opportunity is with a technology provider in South America, with customers in 36 countries throughout South America and the Caribbean.
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20 21 One night in Bangkok.... Our participation in the Digital Currency Conference in Bangkok marked an important milestone this quarter. Even though CEO Joachim Samuelsson only spent “one night in Bangkok,” the event left a strong impression. It generated significant interest, strengthened relationships with key stakeholders, and positioned Digital Cash firmly in front of an international audience. This success laid the foundation for the global expansion of event presence in the months ahead. Crunchfish fresh thinking on offline payments that solutions have to respect the roles and responsibilities of payment networks and payment service providers respectively, received an overwhelming response from central bankers, commercial banks, technology providers, and payments experts at the Digital Currency Conference in Bangkok at the end of May. The payment industry overall is overdue for a transformative change into a packet- switched approach delivering survivability at the face of failure for transactions. The incumbent circuit-switched happy- flow where payments only works when everything works must be updated for better resilience. Crunchfish deep fintech solution delivers by leveraging: • Scalable trust in the client by means of a isolated runtime execution environment provided ny a patented virtual secure element by our partner V-Key. • A patent pending agnostic transport protocol - TAP: Trusted Application Protocol - on the application level that appends any application message with a cryptographic signature that allows any entity offline or online to trust the message using PKI. • A patented layer-2 Reserve, Pay, and Settle approach based conditional payments / smart contracts that makes the offine solution agnostic to the underlying payment network and ensure interoperability cross-service, cross- network as well as cross-border. This has been Crunchfish’s patented approach to payments and offline payments all along. What has been missing was getting the go-to-market approach right. It is all about respecting the established roles and responsibilities in the payments industry. The payment service / application providers that serve end-users should implement Wallets to have sufficient trust in clients to be able to MAKE payments by connecting to the payment network either offline or online as today. The payment network provider, on the other hand, should make sure that the payment ecosystem of end-users and merchants can RECEIVE payments. This is not a new idea in as it is exactly the way the card networks work. The payments industry gets it intuitively. Applying this model to offline payments is novel though as we and others have been trying to sell a whole offline payment system, when it should be broken up with a software-based Terminal kernel for the payment network provider, ensuring that ecosystem can RECEIVE offline payments, and a software- based Wallet for the payment service / application providers, ensuring that their end-users or merchants can MAKE payments. The presenttion in Bangkok was made into a whitepaper that we released in May and it is also accessible on our homepage under the menu Rethinking Payments. Another whitepaper was released at the end of June which describes our solution more in detail and with a feature-by-feature comparison with real-time payment systems, mobile card payments, smartcards, and CBDC systems. Crunchfish solution excels on all aspects – security, scalability, resilience, privacy, interoperability, universality, seamlessness, and cost effectiveness. This whitepaper is also presented under the menu Deep Fintech on our homepage. The landing page of our homepage has also been updated with an introductory overview of how Crunchfish is rethinking payments for online, offline, and cash.
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22 23 2025-09-29 Sibos Frankfurt Crunchfish will exhibit Digital Cash and arrange a fireside chat with invited guests where CEO Joachim Samuelsson also will participate. The fireside chat will discuss Rethinking Payments. 2025-10-07 Global Fintech Fest Mumbai Crunchfish will exhibit Digital Cash. CEO Joachim Samuelsson will participate in a panel discussion about “Global, Instant, Trusted: What the Next Billion Users Will Expect from Finance”. 2025-11-03 The Americas Cash Cycle Seminar Miami Crunchfish will exhibit Digital Cash and CEO Joachim Samuelsson will present Rethinking Cash Payments at a plenary session. ....and the world’s your oyster 2025-08-29 Financial Meetings Malmö CEO Joachim Samuelsson will present on the topic of Rethinking Payments at the discussion session. 2025-09-09 CB+DC Conference Nassau Crunchfish will exhibit Digital Cash and CEO Joachim Samuelsson will present on the topic of “Rethinking Payments - Respecting Roles and Responsibilities in the Payment Ecosystem” at a plenary session and participate in a panel discussion about Interoperability & Standardization. 2025-09-22 The Asia Cash Cycle Seminar Bali Crunchfish will exhibit Digital Cash and CEO Joachim Samuelsson will present Rethinking Cash Payments at a plenary session. Our participation in Bangkok was a great success, even if it was just “One night in Bangkok” for our CEO Joachim Samuelsson it showed that the world’s our oyster. The Digital Currency Conference demonstrated strong interest in Digital Cash and provided valuable international exposure. Building on this momentum, we will expand our presence throughout the fall at several leading industry events. From Nassau and Bali to Frankfurt, Mumbai and Miami, we will continue to showcase our technology on the global stage. What began as a hit in Bangkok now grows into a season of opportunities to connect, expand and deliver.
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24 25 A Detailed Payment System Comparison Payment systems augmented with Crunchfish Digital Cash layer-2 solution promises new possibilities, especially with added resilience, interoperability and privacy implemented in a secure, scalable and cost-efficient way. This section compares five payment systems: 1. Real-Time Payment (RTP) in Mobile Devices 2. EMVCo XPay Host Card Emulation in Mobile Devices 3. EMVCo Bank Issued Smartcards 4. Crunchfish Digital Cash Layer-2 (L2) solution in Mobile Devices and Smartcards 5. CBDC Layer-1 (L1) systems in Mobile Devices and Smartcards The design, security and implementation of these payment systems are analyzed in detail in the matrix below and then ranked in three solution categories: Legacy systems like EMVCo card payments and Account-to-Account Real- Time Payment system dominate in online contexts. Next generation payment networks will include additional features such as resilience which is lacking in these payment systems. CBDC implementations aims to address shortcomings with offline payments, but many suggested solutions fail to deliver as they are challenging to implement in practice. Crunchfish Digital Cash solution is the most well-rounded, future-proof solution, excelling across solution design, security, and implementation. Payment networks should implement hybrid architectures augmented with Crunchfish Digital Cash layer-2 solution to meet the demands of modern payment systems. 1. System Design 2. System Security 3. System Implementation This chapter presents also an analysis on eight key design objectives and present a best practice on each design objective and an overall top performer: 1. Security 2. Scalability 3. Resilience 4. Privacy 5. Universality 6. Interoperability 7. Seamlessness 8. Cost SYSTEM OPTIONS: Real-Time Payment on Mobile Device EMVCo Xpay HCE on Mobiles EMVCo Bank Issued on Smartcard Crunchfish Digital Cash on Mobiles or Smartcard CBDC Solution on Mobiles or Smartcard SYSTEM DESIGN Online Payment Yes Yes Yes Yes Yes Offline Payment No Few MCC only Yes Yes Yes Resilience Low Low Medium High Medium Load Balancing Online Low Low Medium High Low Digital IOU Yes Yes Yes Yes No, Digital Banknote Reservation Online No No No Yes No Online Settlement Yes Yes Yes Yes No Credit Risk in store Online only Floor limit Floor limit No No Data-in-Transit Integrity Online only Online only If SE in Terminal Yes by TAP Yes by Digital Token Network Interoperability RTP only Card networks only Card networks only Yes Single CBDC only Layer 1 Solution Yes Yes Yes Possible Yes Layer 2 Solution No No No Yes No Wallet to Wallet (W2W) Payments No No No Yes Yes Wallet to Terminal (W2T) Payments No Yes Yes Yes No Consecutive Offline Payments No No No Yes Yes Programmable Money No No No Yes Yes Programmable Payments No No No Yes Online only Use Case Flexibility Medium Medium Low High Low Payment Privacy Low Low Low High Medium Bank Driven Privacy Yes Yes Yes Yes No System Driven Privacy Yes Yes Yes Possible Yes Payment Anonymity No No No Possible Possible Digital Banknote Privacy No No No No Yes SYSTEM SECURITY Isolated Runtime No No Yes Yes Yes Runtime Execution Environment SW (REE) SW (REE) and HW SE HW SE SW (Virtual SE) or HW SE HW SE Rollback Protection N/A No N/A Yes N/A for SE, No for TEE Secure Time No No Yes Yes No Double-Spending Risk Low as Online Only Low Online Low Medium as Offline Also Medium as Offline Also Quantum Safe Possible Possible Possible Possible Possible Bank Reconciliation Yes Yes Yes Yes No Central Reconciliation Yes Yes Yes Possible Yes Detect Fradulent Wallets Online Yes Yes Yes Yes Yes Wallet Upgrade Ecosystem Yes XOEM only Yes Yes No Transaction Cost Medium P2M High High No or Low No or Low SYSTEM IMPLEMENTATION Wallet Distribution Ecosystem Yes XOEM only Yes Yes No Wallet Scalability Yes Yes Yes Yes No Wallet Configurability High Medium Low High Low Multiple Device Form Factors No Yes Yes Yes Yes Implementation Complexity Low Medium High Medium High Wallet Cost Low Medium High Low High Proximity Methods QR NFC NFC QR, BLE, NFC, Multi-modal NFC Terminal Distribution Ecosystem Yes Yes Yes Yes No Terminal Upgrade Ecosystem Yes Yes Yes Yes No Terminal Scalability Yes Yes Yes Yes No Terminal Configurability High Medium Medium High Low Multiple Terminal Form Factors No No No Yes Yes Implementation Complexity Low Medium Medium Low High Terminal Cost No or Low Medium Medium No or Low High Isolated Runtime in Terminal No as online only Preferred Preferred No Yes as W2W only Open Solution Commercial platforms EMVCo standard EMVCo standard Proprietary and Patented Proprietary and Patented Figure: Detailed analysis of design, security, and implementation aspects of five payment systems. Entries in green are positive, yellow neutral, and red are negative aspects for the payment systems.
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26 27 Ranking of System Design, Security and Implementation This ranking reinforces Crunchfish Digital Cash L2 solution as the most well-rounded, future-proof solution, excelling across solution design, security, and implementation. While legacy systems like EMVCo and RTP retain their relevance in online contexts, CBDCs and hybrid L2 implementations promise new possibilities, especially with added resilience and privacy configurability. Payment networks should prioritize hybrid architectures that blend online scalability with offline survivability to meet the demands of modern payment systems. System Design System Security System Implementation System design evaluates the scalability, resilience, privacy, programmability, and flexibility of the system. System security evaluates the system’s ability to protect against fraud, and ensure data integrity in operation, at rest, and in transit. System implementation evaluates wallet distribution and upgrade system, scalability, infrastructure complexity, terminal integration, and associated costs. 1st Place: Crunchfish Digital Cash L2 solution 1st Place: Crunchfish Digital Cash L2 solution 1st Place: Crunchfish Digital Cash L2 solution - Reasons: Crunchfish Digital Cash L2 solution excels in its hybrid approach, implementing a L2 solution that supports both online and offline payments. Its use of a packet-switched architecture allows for highly resilient and scalable operations, with configurable privacy and programmable features that support use-case flexibility such as Wallet-to-Wallet (W2W) and Wallet- to-Terminal (W2T) payments. Additionally, it enables consecutive offline payments, an essential feature in environments with poor connectivity. - Reasons: Crunchfish Digital Cash provides very high security through cryptographic signing, rollback protection, secure time mechanisms, and fraud-resistant offline payments in isolated runtime execution environment. By online settlement it leverages distributed core banking systems for detection of fraudulent offline wallets. - Reasons: Crunchfish Digital Cash stands out in implementation due to its low- cost scalability and reliance on existing infrastructure (e.g., smartphones, wallets, terminals). Its lightweight L2 solution reduces complexity, while multi-modal proximity methods (QR, NFC, BLE) enhance both wallet and terminal reach. Importantly, it does not require specialized terminal hardware or device ecosystems. - Advantages: High scalability, support for hybrid online/offline architecture, configurable privacy, programmability, and support for multiple proximity methods (QR, NFC, BLE, multi-modal). - Advantages: Strong cryptographic operations, effective fraud mitigation, and reliable offline security mechanisms in packet-switched approach provides data integrity in operation, at rest, and in transit. - Advantages: Affordable, scalable, highly configurable across mobile devices and terminals. 2nd Place: CBDC L1 Systems 2nd Place: CBDC L1 Systems 2nd Place: Real-Time Payment (RTP) - Reasons: CBDC systems offer scalability and programmability at the national level, making them a strong candidate for real-world deployment. However, their centralized nature hinders offline resilience and introduces greater implementation complexity. Privacy in CBDCs is configurable but policy-dependent, which can limit flexibility based on desired use cases. - Reasons: CBDC systems benefit from being directly issued by central banks, ensuring high institutional trust and security. With proper implementation (e.g., quantum- safe cryptography and secure tokens), they deliver exceptional security. However, they remain fundamentally dependent on centralized infrastructure, which poses risks during network disruptions. - Reasons: RTP systems score relatively high on implementation due to low-complexity and low-cost infrastructures, especially for wallet design. Leveraging QR codes and phone-based transactions, RTP systems minimize dependency on specialized terminals or devices, making them cost- effective for real-time online payments. - Advantages: Strong programmability and scalability for real-time online systems. Configurable privacy aligns with compliance for KYC and AML regulations. - Advantages: Centralized trust and future- proof cryptographic mechanisms. - Advantages: Low initial infrastructure cost and simple integration with mobile ecosystems. 3rd Place: EMVCo XPay (HCE) 3rd Place: EMVCo Bank Issued ICC Cards 3rd Place: EMVCo XPay (HCE) - Reasons: XPay systems like Apple Pay and Google Pay have solid solution designs for specific use cases (e.g., retail payments), leveraging NFC-based proximity methods. However, they generally lack offline capabilities and configurability for broader use-case flexibility. - Reasons: ICC Cards offer robust physical tamper resistance and cryptographic protections. However, limitations in offline fraud mitigation and static terminal reliance reduce their overall ranking in dynamic use cases. - Reasons: XPay systems rely on OEM device manufacturers like Apple, Google, or Samsung creating barriers for scalability and distribution. High dependency on proprietary ecosystems (e.g., phones with NFC hardware) reduces implementation flexibility, while terminal costs remain moderate. - Advantages: Seamlessness in online use cases and reasonable scalability. However, the system is highly platform-dependent (tied to device manufacturers) and lacks resiliency for offline payments. - Advantages: Reliable in traditional retail scenarios with established security protocols (e.g., PINs, EMV standards). - Advantages: Simple configuration for end users but restricted to specific platforms and terminal compatibility. 4th Place: EMVCo Bank Issued ICC Cards 4th Place: EMVCo XPay (HCE) 4th Place: EMVCo Bank-Issued ICC Cards - Reasons: Traditional cards are well- established globally, providing solid interoperability and scalability in online retail ecosystems. However, their low configurability, lack of programmability, and limited offline flexibility place them low in terms of design innovation. - Reasons: XPay systems utilize Secure Elements (SEs) and encryption to ensure secure transactions within proprietary platforms. However, dependence on centralized cloud-based validation and app ecosystems introduces vulnerabilities, particularly in offline environments. - Reasons: Implementation requires high- cost infrastructure, including card issuance, terminals, and maintenance of bank-specific networks. While ICC cards dominate in physical retail environments, scalability into purely digital or hybrid spaces is limited. - Advantages: Suitable for standardized retail payments, especially for physical environments, but lacks a path forward for cash-like functions required in modern financial ecosystems. - Advantages: High-level encryption at the device level makes XPay systems relatively secure for retail use cases but not for resilience-demanding environments. - Advantages: Ubiquitous in retail and reliable for physical terminals, but implementation complexity is high. 5th Place: Real-Time Payment (RTP) 5th Place: Real-Time Payment (RTP) 5th Place: CBDC L1 Systems - Reasons: While RTP performs well in real-time online payment contexts, it lacks programmability, resilience, and offline operability. It is deeply tied to centralized infrastructure, which makes it less flexible compared to more distributed and hybrid alternatives. - Reasons: While RTP systems ensure security through centralized verification, their lack of offline fraud prevention leaves them vulnerable to systemic attacks and network dependencies. Additionally, having no secondary support reduces protection in payment contexts requiring redundancy. - Reasons: Centralized CBDC systems typically involve high implementation costs, requiring substantial national infrastructure development, terminal upgrades, and wallet design. As central banks issue CBDCs, governance and distribution complexities further complicate implementation. - Advantages: Works exceptionally well for connected, high-volume transactions but fails in environments requiring hybrid designs or privacy. - Advantages: Strong for centralized, always- connected use cases but weak in resilience. - Advantages: Strong scalability for real-time connected payments but burdensome in terms of infrastructure and operational overhead.
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28 29 Overall Ranking: 1. Crunchfish Digital Cash L2 solution: Excels in all categories — solution design, security, and implementation — by providing a scalable, resilient, and cost- effective L2 hybrid architecture suitable for both online and offline payments. 2. CBDC L1 Systems: Strong in solution design and security but falters under implementation complexity and cost. Incorporating L2 hybridization with Crunchfish would greatly enhance CBDC performance. 3. EMVCo Bank Issued ICC Cards: Reliable for traditional transaction environments, yet constrained by limited configurability and high implementation costs in the evolving financial ecosystem. 4. EMVCo XPay (HCE): Performs moderately across all categories but lacks the scalability, resilience, and configurability needed for future-proof designs. 5. Real-Time Payment (RTP): Great for real- time transactional volumes in connected environments but lags in offline resilience, programmability, and advanced features necessary for hybrid ecosystems. Analysis and Best Practise Ranking for Eight Key Design Objectives Crunchfish Digital Cash L2 solution is the overall top performer as it leads across all dimensions: Security, Scalability, Resilience, Privacy, Universality, Interoperability, Seamlessness, and Cost. Its hybrid design integrating L2 offline operations and scalable L1 online settlement reconciliation makes it both robust and cost-effective. The future of digital payments hinges on balancing cost, resilience, and seamless integration, bridging traditional infrastructure gaps while gearing solutions for next- generation financial landscapes. The way forward is the novel packet-switched architecture delivered by the modular Crunchfish Digital Cash L2 solution that augments any payment network with multiple desired design objectives. Design Objectives Definition Analysis Recommendation Security Assesses the strength of measures protecting payment solutions against fraud, unauthorized access, tampering, and data breaches. Includes encryption standards, runtime isolation, rollback protection, and quantum-safe mechanisms. Security is paramount for safeguarding transactional data. Solutions like Crunchfish Digital Cash and CBDC solutions excel due to device isolated runtime execution environments and systemic quantum- safe cryptography. EMVCo ICC and XPay rely heavily on hardware like Secure Elements (SEs), which offer substantial protection but limit scalability and universality, while RTP systems struggle due to no support for offline use cases and resilience issues. Crunchfish Digital Cash L2 solution and CBDC L1 systems Scalability Evaluates the ability of payment solutions to process increasing transaction volumes and expand infrastructure without performance degradation. Includes online and offline scalability. Crunchfish Digital Cash leads scalability due to its L2 design, enabling offline transactions and asynchronous reconciliation for virtually infinite payment streams. RTP performs well for strictly online high-frequency payments. EMVCo (cards and XPay) and CBDCs have scalability issues when offline operability is required. Crunchfish Digital Cash L2 solution Resilience Reflects the ability of payment systems to withstand systemic failures, including offline operability and continued functionality during network, power and server outages. Only Crunchfish Digital Cash achieves very high resilience by its packet-switched architecture and allowing consecutive offline payment cycles, ensuring operability during systemic failures. CBDC solutions fare moderately well but typically depend heavily on centralized backend systems for reconciliation. Other solutions (RTP, XPay, and EMVCo ICC) suffer due to their reliance on online infrastructure. Crunchfish Digital Cash L2 solution Privacy Examines how well the payment system protects users’ transactional data from exposure, ensuring anonymity or configurable privacy settings. Crunchfish Digital Cash offers configurable privacy, balancing user anonymity for low- value payments with traceability for regulatory requirements. CBDC solutions may match this with privacy thresholds driven by central bank policies, but token/account-based designs need careful planning. Other systems have inherent traceability due to online network dependencies. Crunchfish Digital Cash L2 solution and CBDC L1 system Universality Measures acceptance and compatibility across geographies, populations, and device types, including accessibility in low-tech or underbanked environments. Universal acceptance across devices and environments makes Crunchfish Digital Cash a leader. Supporting multiple proximity methods (QR, BLE, NFC, ultrasound) ensures it adapts to diverse infrastructure. CBDC solutions could achieve similar universality but rely heavily on centralized policies and NFC proximity methods. Crunchfish Digital Cash L2 solution Interoperability Refers to the solution’s ability to integrate across platforms, devices, and networks to ensure seamless cross-system compatibility. Interoperability is critical for cross-network operation. Crunchfish Digital Cash excels due to its agnosticism to layer-1 infrastructure, while CBDCs struggle with domestic-only designs (though interoperability could improve with cross-border integration). The other payment system struggle also as being closed payment networks. Crunchfish Digital Cash L2 solution Seamlessness Indicates how frictionless the interaction is between online and offline payment systems, balancing user experience and technical integration across hybrid contexts. Systems integrating online and offline payments without friction—Crunchfish Digital Cash—achieve excellence. Other solutions fail to deliver seamless transitions, particularly in offline contexts. Crunchfish Digital Cash L2 solution Cost Evaluates cost efficiency in terms of implementation complexity, hardware/ software requirements, wallet/terminal and transactional expenses, and operational scalability relative to each solution. Cost efficiency is dominated by Crunchfish Digital Cash, which minimizes hardware/ software dependencies while achieving scalability, privacy, and resilience. RTP and EMVCo XPay maintain medium costs, while cards (EMVCo ICC) and CBDCs suffer from much higher infrastructure expenses. Crunchfish Digital Cash L2 solution
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30 31 Significant news during and after Q2 2025-08-21 Crunchfish gets Industry validations of its way of rethinking payments. 2025-08-08 Crunchfish Digital Cash was featured in an IMF Fintech Note and follow-up note from two of the co-authors. 2025-07-29 Crunchfish became sponsor of CBSO to advance global central banking standards. 2025-07-23 Crunchfish announced validation of its fundamental Digital Cash patent in Europe. 2025-07-11 Crunchfish received patent in Taiwan for Fundamental Offline Payment Innovation. 2025-07-02 Crunchfish provided a high-level description of its modular, packet- switched, layer-2 approach to payments. 2025-06-25 Crunchfish presented a new white paper on the topic Resilience, Privacy, and Other Key Design Objectives in CBDC and Commercial Payment Networks and Applications – A Groundbreaking Packet- Switched Layer-2 Approach. 2025-06-18 Crunchfish CEO Joachim Samuelsson was featured in the P.I.T. Exchange Podcast by Currency Research. 2025-06-05 Crunchfish introduced new tagline: Rethinking Payments – Redefining the Future of Payments Across Online, Offline, and Physical Cash Ecosystems. 2025-06-05 Crunchfish solved key pain point of physical cash handling with patented Digital Cash Solution. 2025-06-02 Crunchfish announced the result of the exercise of warrants series TO11. 2025-06-02 Crunchfish received a Final Notice from the Swedish Patent Office (PRV) for a privacy and interoperable offline payment innovation. 2025-05-27 Crunchfish unveiled the white paper titled Rethinking Offline Payments: A Groundbreaking Ecosystem Approach. 2025-05-23 Crunchfish receives Decision to Grant for its initial fundamental offline payment innovation in Europe. 2025-05-21 Crunchfish redesigned the Digital Cash Web Section on its website to highlight the interoperable offline wallet and terminal infrastructure. 2025-05-21 Crunchfish published the 2025 Q1 report, and held a webinar in Swedish about it, where Crunchfish CEO Joachim Samuelsson was interviewed by Johan Widmark, Equity Research Analyst from Emergers. 2025-05-21 Crunchfish launches Offline Terminal Infrastructure for payment networks. 2025-05-05 Crunchfish pioneers offline payments with online settlement in ECB innovation platform. 2025-04-15 Crunchfish published the 2024 annual report, and held a webinar in Swedish about it, where Crunchfish CEO Joachim Samuelsson was interviewed by Johan Widmark, Equity Research Analyst från Emergers.
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32 33 Sales and earnings for the quarter Net sales amounted to SEK 156 (432) thousand for the second quarter and operating expenses amounted to SEK 8,188 (13,166) thousand. Operating costs have decreased as a result of the closure of the gesture interaction business. EBITDA for the period amounted to SEK -4,583 (-5,867) thousand. Loss before tax for the second quarter amounted to SEK -5,071 (-7,935) thousand and has been charged with amortization of intangible assets of SEK 391 (710) thousand and tangible fixed assets of SEK 65 (76) thousand and with impairment om of intangible assets of SEK 0 (1,286) thousand. Sales and earnings for the half year Net sales amounted to SEK 441 (2,097) thousand for the period and operating expenses amounted to SEK 16,164 (25,977) thousand. Net sales have decreased due to a one-time agreement in the gesture interaction business in the first half of 2024. Operating costs have decreased as a result of the closure of the gesture interaction business. EBITDA for the period amounted to SEK -9,134 (-9,787) thousand. Loss before tax for the period amounted to SEK -10,179 (-14,190) thousand and has been charged with amortization of intangible assets of SEK 806 (1,451) thousand and tangible fixed assets of SEK 129 (197) thousand and with impairment om of intangible assets of SEK 0 (2,793) thousand. Investments During the second quarter, the Group invested SEK 2,308 (4,159) thousand in intangible fixed assets and SEK 0 (0) thousand in tangible fixed assets. During the first half year, the Group invested SEK 4,381 (8,423) thousand in intangible fixed assets and SEK 0 (0) thousand in tangible fixed assets. Liquidity and financing At the end of the second quarter the Group’s cash and cash equivalents amounted to SEK 13,175 (12,503) thousand. Cash flow from operating activities during the second quarter amounted to SEK -3,958 (-5,247) thousand. Staff As of June 30, 2025, the number of employees was 13 (21). Risks and uncertainties A number of different risk factors could impact Crunchfish’s operations and industry negatively. It is therefore very important to consider relevant risks in addition to the Company’s growth opportunities. Relevant risks are presented in the prospectus issued by Crunchfish AB in November 2024 and the annual report for FY 2024, which can be found at crunchfish.com. Related party transactions Company management and administrative staff are employed in the parent company Crunchfish AB. Reported sales in the parent company consists of income from services rendered for management and administration of the company’s two subsidiaries. Financials
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34 35 Financial calendar Crunchfish AB publishes financial reports after each quarter. Upcoming reports are planned to be published according to the schedule below: Half-year report 2025 August 22nd, 2025, 8:30 am CET Interim report Q3 2025 November 13th, 2025, 8:30 am CET Year-end report 2025 February 12th, 2026, 8:30 am CET Accounting principles This report has been drafted according to the Annual accounts act (Årsredovisningslagen) and BFNAR 2012:1 (K3). Auditor’s review This report has not been subject to review by the company’s auditor. Company information Crunchfish AB (publ), corporate registration number 556804–6493, is a limited company seated in Malmö, Sweden. Certified Adviser Västra Hamnen Corporate Finance AB is the company’s Certified Adviser. E-mail: ca@vhcorp.se Phone: +46 40 200 250 Further information For further information, please contact: Joachim Samuelsson, CEO ir@crunchfish.com Crunchfish AB (publ) Stora Varvsgatan 6A 211 19 Malmö Statement by the Board of Directors and the CEO The Board of Directors and the CEO hereby assures that this interim report gives a fair overview of the company’s operations, financial status, and result. Malmö, August 22nd, 2025 The Board of Directors: Göran Linder (Chairman) Susanne Hannestad Joachim Samuelsson (CEO) Malte Zaunders This information is information that Crunchfish AB is obliged to publish in accordance to the EU Market Abuse Regulation. The information was provided by the contact person above for publication on August 22nd, 2025. Name Number of shares* Share % Corespring Invest AB (Chairmain Göran Linder) 13 849 730 18.76% CEO Joachim Samuelsson incl. 50% owned company holdings 7 750 000 10.50% Nowo Global Fund 4 449 981 6.03% Nordic Underwriting ApS 2 118 680 2.87% Mats Kullenberg incl. company holdings 1 666 549 2.26% Agartha AB 1 500 000 2.03% Granitor Invest AB 1 259 269 1.71% Lars Andreasson and family holdings 1 150 000 1.56% Carlquist Holding AB 900 000 1.22% Mikael Kretz incl. company holdings 760 000 1.03% Total 10 largest shareholders 35 404 209 47.95% Other shareholders (approx. 5 000) 38 438 682 52.05% Total 73 842 891 100.00% Major shareholders for Crunchfish AB (publ) as of June 30th 2025 *The number of shares is estimated based on information from Euroclear and shareholders. Share price development during 6 months Sales and earnings for the quarter, parent company The parent company’s net sales amounted to SEK 3,739 (4,146) thousand for the second quarter and operating expenses to amounted to SEK -4,310 (-4,883) thousand. EBITDA for the period amounted to SEK 72 (-115) thousand. During the second quarter, the parent company invested SEK 0 (0) thousand in intangible fixed assets and SEK 0 (0) thousand in tangible fixed assets. Sales and earnings for the half year parent company The parent company’s net sales amounted to SEK 7,126 (8,319) thousand for the period and operating expenses to amounted to SEK -8,176 (-9,405) thousand. EBITDA for the period amounted to SEK 181 (119) thousand. During the period, the parent company invested SEK 0 (0) thousand in intangible fixed assets and SEK 0 (0) thousand in tangible fixed assets.
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36 37 Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Operating income Net sales 156 262 431 893 441 436 2 097 231 2 933 125 Own work capitalized 2 307 904 4 159 236 4 380 882 8 423 407 12 708 120 Other operating income 685 600 635 467 1 272 243 1 228 029 2 393 788 Total operating income 3 149 766 5 226 596 6 094 561 11 748 667 18 035 033 Operating expenses Other external expenses -3 505 153 -4 579 310 -6 227 130 -8 753 671 -15 717 962 Personnel expenses -4 227 685 -6 428 036 -9 002 194 -12 712 960 -23 249 122 Depreciation and impairment of tangible and intangible fixed asset -455 327 -2 071 883 -934 643 -4 441 362 -5 386 783 Other operating expenses 0 -86 386 0 -86 386 -86 386 Gain/loss from participations in associated companies 0 0 0 17 230 17 230 Total operating expenses -8 188 165 -13 165 615 -16 163 967 -25 977 149 -44 423 023 Operating profit -5 038 399 -7 939 019 -10 069 406 -14 228 482 -26 387 990 Financial items Other interest income and similar profit items 372 28 986 -1 236 79 919 155 214 Interest expense and similar loss items -32 504 -24 583 -108 577 -41 036 -214 230 Profit or loss from financial items -32 132 4 403 -109 813 38 883 -59 016 Profit or loss after financial items -5 070 531 -7 934 616 -10 179 219 -14 189 599 -26 447 006 Profit or loss before tax -5 070 531 -7 934 616 -10 179 219 -14 189 599 -26 447 006 Taxes Tax on income for the period 0 0 0 0 -78 774 Profit or loss for the period/year -5 070 531 -7 934 616 -10 179 219 -14 189 599 -26 525 780 Key figures EBITDA -4 583 072 -5 867 136 -9 134 763 -9 787 120 -21 001 207 Earnings per share -0.07 -0.20 -0.16 -0.36 -0.60 Number of shares, average 68 301 466 39 646 906 64 242 184 39 646 906 44 112 423 Number of shares at balance sheet date 73 842 891 39 646 906 73 842 891 39 646 906 57 508 974 Earnings per share after full dilution -0.07 -0.20 -0.16 -0.36 -0.60 Number of shares after full dilution, average 77 433 172 41 059 706 76 888 827 41 059 706 49 923 224 Number of shares after full dilution, balance sheet date 80 822 891 41 059 706 80 822 891 41 059 706 76 628 676 Group income statement (SEK) Financial report
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38 39 Group balance sheet (SEK) Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Assets Fixed assets Intangible assets Capitalized expenses for development work 37 242 871 30 312 448 33 779 659 Total intangible fixed assets 37 242 871 30 312 448 33 779 659 Tangible fixed assets Equipment 776 273 1 035 941 906 372 Total tangible fixed assets 776 273 1 035 941 906 372 Total fixed assets 38 019 144 31 348 389 34 686 031 Current assets Current receivables Account receivables 121 720 389 186 329 212 Other receivables 1 975 768 1 717 417 1 615 856 Prepayments and accrued income 1 233 426 1 723 955 1 057 877 Total current receivables 3 330 914 3 830 558 3 002 945 Cash and bank balances Cash and bank balances 13 175 238 12 503 395 17 276 249 Total cash and bank balances 13 175 238 12 503 395 17 276 249 Total current assets 16 506 152 16 333 953 20 279 194 Total assets 54 525 296 47 682 342 54 965 225 Changes in the group equity (SEK) Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Equity at beginning of period/year 46 347 654 46 007 907 47 163 250 52 262 120 52 262 120 Translation difference -27 442 -20 910 -59 403 -20 140 -52 264 Share issue 5 236 646 0 9 889 278 0 25 899 999 Issue costs -255 159 0 -582 738 0 -5 242 030 Warrant premiums 446 218 0 446 218 0 821 205 Profit or loss for the period/year -5 070 531 -7 934 616 -10 179 219 -14 189 599 -26 525 780 Equity at end of period /year 46 677 386 38 052 381 46 677 386 38 052 381 47 163 250 Group balance sheet cont. (SEK) Equity and liabilites Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Equity Equity attributable to parent company shareholders Share capital 3 396 773 1 823 758 2 645 414 Other contributed capital 348 039 895 318 472 506 339 097 900 Other capital including profit or loss for the period -304 759 282 -282 243 883 -294 580 064 Total equity 46 677 386 38 052 381 47 163 250 Long-term liabilities Lease liabilities 356 903 857 381 754 498 Total long-term liabilities 356 903 857 381 754 498 Current liabilities Lease liabilities 500 478 197 525 202 994 Accounts payable 788 698 1 191 805 642 794 Other liabilities 953 899 849 530 810 044 Accrued expenses and accrued income 5 247 932 6 533 720 5 391 645 Total current liabilities 7 491 007 8 772 580 7 047 477 Total equity and liabilities 54 525 296 47 682 342 54 965 225 Key Figures Equity-assets-ratio 85.6% 79.8% 85.8% Debt-to-equity ratio 1.8% 2.8% 2.0% Interest-bearing net debt n/a n/a n/a
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40 41 Group cash flow statement (SEK) Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Operating activities Operating profit or loss -5 038 399 -7 939 019 -10 069 406 -14 228 482 -26 387 990 Adjustments for non-cash intems 540 671 2 050 280 988 366 4 487 509 5 307 962 Interest received etc. 372 9 285 64 196 10 176 105 772 Interest paid -14 119 -18 209 -90 192 -34 662 -214 230 Income tax paid 0 0 0 0 0 Cash flow from operating activities before changes in working capital -4 511 475 -5 897 663 -9 107 036 -9 765 459 -21 188 486 Cash flow from changes in working capital Decrease(+)/increase(-) in receivables 694 021 717 777 -327 969 -690 795 136 818 Decrease(-)/increase(+) in current liabilities -140 113 -67 315 146 046 739 635 -990 937 Cash flow from operating activities -3 957 567 -5 247 201 -9 288 959 -9 716 619 -22 042 605 Investing activities Investments in technology development -2 307 904 -4 159 236 -4 380 882 -8 423 407 -12 708 120 Cash flow from investing activities -2 307 904 -4 159 236 -4 380 882 -8 423 407 -12 708 120 Financing activities Share issue 4 981 487 0 9 306 540 0 20 657 969 Loans from shareholders 0 0 0 0 5 000 000 Repayment loans from shareholders 0 0 0 0 -5 000 000 Amortization of financial leasing agreements -50 398 -88 815 -100 111 -145 431 -227 125 Warrant premiums paid 446 218 0 446 218 0 821 205 Cash flow from financing activities 5 377 307 -88 815 9 652 647 -145 431 21 252 049 Change in cash and cash equivalents -888 164 -9 495 252 -4 017 194 -18 285 457 -13 498 676 Cash and cash equivalents at beginning of period/ year 14 081 787 21 985 320 17 276 249 30 725 483 30 725 483 Exchange rate difference in cash and cash equivalents -18 385 13 327 -83 817 63 369 49 442 Cash and cash equivalents at end of period/year 13 175 238 12 503 395 13 175 238 12 503 395 17 276 249 Parent company income statment (SEK) Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Operating income Net sales 3 739 126 4 145 957 7 125 625 8 318 831 14 667 941 Other operating income 639 452 619 036 1 225 043 1 199 796 2 361 074 Total operating income 4 378 578 4 764 993 8 350 668 9 518 627 17 029 015 Operating expenses Other external expenses -2 194 882 -2 701 870 -3 999 082 -5 425 548 -8 936 349 Personnel expenses -2 112 164 -2 091 342 -4 170 480 -3 887 361 -7 711 561 Depreciation of tangible and intangible fixed asset -3 010 -3 010 -6 020 -6 020 -12 040 Other operating expenses 0 -86 386 0 -86 386 -86 386 Total operating expenses -4 310 056 -4 882 608 -8 175 582 -9 405 315 -16 746 336 Operating profit 68 522 -117 615 175 086 113 312 282 679 Financial items Profit/loss from participation in group companies -45 000 -2 740 000 -180 000 -4 740 000 -119 900 000 Other interest income and similar profit items 69 851 88 367 82 869 129 605 449 875 Interest expense and similar loss items -23 945 -29 962 -38 775 -49 170 -205 328 Profit or loss from financial items 906 -2 681 595 -135 906 -4 659 565 -119 655 453 Profit or loss before tax 69 428 -2 799 210 39 180 -4 546 253 -119 372 774 Taxes Tax on income for the period 0 0 0 0 0 Profit or loss for the period/year 69 428 -2 799 210 39 180 -4 546 253 -119 372 774 Key figures EBITDA 71 532 -114 605 181 106 119 332 294 719 Earnings per share 0.00 -0.07 0.00 - 0.11 -2.71 Number of shares. average 68 301 466 39 646 906 64 242 184 39 646 906 44 112 423 Number of shares at balance sheet date 73 842 891 39 646 906 73 842 891 39 646 906 57 508 974 Earnings per share after full dilution 0.00 -0.07 0.00 - 0.11 -2.71 Number of shares after full dilution. average 77 433 172 41 059 706 76 888 827 41 059 706 49 923 224 Number of shares after full dilution. balance sheet date 80 822 891 41 059 706 80 822 891 41 059 706 76 628 676
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42 43 Parent company balance sheet (SEK) Assets Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Fixed assets Tangible fixed assets Equipment 21 039 33 079 27 059 Total tangible fixed assets 21 039 33 079 27 059 Financial assets Participations in group companies 34 885 363 120 558 538 34 619 145 Receivables from group companies 13 516 188 14 301 006 0 Total financial assets 48 401 551 134 859 544 34 619 145 Total fixed assets 48 422 590 134 892 623 34 646 204 Current assets Current receivables Account receivables 25 189 37 817 282 289 Other receivables 453 878 454 110 359 727 Prepayments and accrued income 1 103 239 1 306 203 1 057 877 Total current receivables 1 582 306 1 798 130 1 699 893 Cash and bank balances Cash and bank balances 12 681 328 11 467 580 16 109 962 Total cash and bank balances 12 681 328 11 467 580 16 109 962 Total current assets 14 263 634 13 265 710 17 809 855 Total assets 62 686 224 148 158 333 52 456 059 Parent company balance sheet cont. (SEK) Changes in parent company equity (SEK) Equity and liabilites Jun 30, 2025 Jun 30, 2024 Dec 31, 2024 Equity Restricted equity Share capital 3 396 773 1 823 758 2 645 413 Total restricted equity 3 396 773 1 823 758 2 645 413 Unrestricted equity Profit brought forward 54 915 618 144 629 474 165 286 994 Profit or loss for the period/year 39 180 -4 546 253 -119 372 774 Total unrestriced equity 54 954 798 140 083 221 45 914 220 Total equity 58 351 571 141 906 979 48 559 633 Current liabilities Accounts payable 240 748 389 242 233 651 Liabilities to group companies 553 223 2 142 868 652 663 Other liabilities 655 576 737 562 328 077 Accrued expenses and accrued income 2 885 106 2 981 682 2 682 035 Total current liabilities 4 334 653 6 251 354 3 896 426 Total equity and liabilities 62 686 224 148 158 333 52 456 059 Key Figures Equity-assets-ratio 93.1% 95.8% 92.6% Debt-to-equity ratio 0.0% 0.0% 0.0 Interest-bearing net debt n/a n/a n/a Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Equity at beginning of period/year 52 854 438 144 706 189 48 559 633 146 453 232 146 453 232 Share issues 5 236 646 0 9 889 278 0 25 899 999 Issue costs -255 159 0 -582 738 0 -5 242 030 Warrant premiums 446 218 0 446 218 0 821 206 Profit or loss for the period/year 69 428 -2 799 210 39 180 -4 546 253 -119 372 774 Equity at end of period /year 58 351 571 141 906 979 58 351 571 141 906 979 48 559 633
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44 45 Parent company cash flow statement (SEK) Q2 2025 Q2 2024 Q1-Q2 2025 Q1-Q2 2024 2024 Operating activities Operating profit or loss 68 522 -117 615 175 086 113 312 282 679 Adjustments for non-cash intems 3 010 3 010 6 020 6 020 12 041 Interest received etc. 55 892 68 666 82 869 84 030 438 436 Interest paid 7 877 -29 962 -6 953 -49 170 -205 328 Income tax paid 0 0 0 0 0 Cash flow from operating activities before changes in working capital 135 301 -75 901 257 022 154 192 527 828 Cash flow from changes in working capital Decrease(+)/increase(-) in receivables 931 617 1 489 692 117 587 136 377 234 614 Decrease(-)/increase(+) in current liabilities 72 700 443 464 537 667 500 068 -364 655 Cash flow from operating activities 1 139 618 1 857 255 912 276 790 637 397 787 Investing activities Loans provided to group companies -7 107 582 -10 431 066 -13 615 628 -19 158 138 -34 746 739 Cash flow from investing activities -7 107 582 -10 431 066 -13 615 628 -19 158 138 -34 746 739 Financing activities Share issue 4 981 487 0 9 306 540 0 20 657 969 Loans from shareholders 0 0 0 0 5 000 000 Repayment loans from shareholders 0 0 0 0 -5 000 000 Warrant premiums paid 0 0 0 130 014 0 Cash flow from financing activities 4 981 487 0 9 306 540 130 014 20 657 969 Change in cash and cash equivalents -986 477 -8 573 811 -3 396 812 -18 367 501 -13 690 983 Cash and cash equivalents at beginning of period/ year 13 685 668 20 021 690 16 109 962 29 789 506 29 789 506 Exchange rate difference in cash and cash equiva - lents -17 863 19 701 -31 822 45 575 11 439 Cash and cash equivalents at end of period/ year 12 681 328 11 467 580 12 681 328 11 467 580 16 109 962
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