Good morning and thank you for joining us today. I'm Laila Danielsen, the CEO of Elliptic Labs, and joining me as well today is our CFO, Lars Holmøy. We're excited to share with you Elliptic Labs' Results for the Second Quarter of 2025. Let's start off with the highlights. We are proud to share with you the solid commercial progress we have achieved in the first half of 2025 and the milestones we have reached so far this year. Before the summer, we announced a groundbreaking agreement to deliver our AI Virtual Smart Sensor Platform directly into an existing laptop customer's proprietary software stack to enable seamless multi-device connectivity across their device portfolio. This agreement marked a solid commitment from a global leading PC laptop player, enabling wider and broader deployment of our technology. As part of the new agreement, certain revenues were pushed from Q2 to Q3 and some into Q4 due to a shift in licensing structure. This is only a one-time effect. The agreement significantly strengthened the outlook long term we have with this partnership. While we didn't specify any specific laptop models, it enables a more seamless deployment going forward. In fact, earlier this week, as well as yesterday, we announced two new contracts with the customer covering a series of laptop models in the commercial and consumer segments, also including PC accessories. These new contracts give a combined minimum commitment of NOK 55 million, the majority of which will be recognized in Q3 in 2025 and contribute towards a significant uptake in the year-on-year growth in the next quarter. This represents our largest revenue contracts to date, and we're excited to share the continued progress with this customer going forward. Due to the deferral of income, the revenue from contracts with the customer was muted in Q2 and ended just under NOK 25 million. This is, however, just a matter of timing. With basis from our existing and new contracts, it makes us confident that we are on track for double-digit revenue growth for the full year 2025. Our mission stays the same. It is to build the leading AI software platform for all user experience, making every device smarter, interoperable, and more human and environmentally friendly. We are building the future of AI sensing, making devices smarter, seamlessly connected, and intuitive. With advanced AI, sensor fusion, and as we are moving up the software stack, we are not just improving technology, we're redefining how it interacts with the world today. Over half a billion devices are using our AI platform to make them greener, smarter, and more user-friendly. All right, so looking at the smartphone vertical, we are maintaining the strong deployment momentum from the first quarter of the year. We have launched 204 smartphone models to date, with 42 smartphone launches announced so far in 2025. 26 of these models were launched during the first six months of 2025, and six additional models so far in the third quarter. This compares to 66 models for the full year in 2024, and we are well on our way to deliver meaningful growth in deployment. The continued high number of launches demonstrates the strength of our strategic partnerships with leading global OEMs, including Xiaomi, vivo, HONOR, and Transsion. To the right of the screen, you can see some examples of the innovative launches made in 2025. All right, so as explained in the highlights, I want to dive a little bit more into these various contracts. We signed an agreement for a multi-device connectivity solution with the world's largest PC and laptop player just before the summer. This is Lenovo. I want to give some color on what this entails. Firstly, the customer previously used a third-party software integration app to deliver an interconnectivity solution. The customer now has integrated this functionality directly into their own software stack, so that integration of new model devices and accessories can be deployed with ease across their entire device portfolio. Again, this specific contract did not include any laptop models for future launch, but it enables a strong fundament for more seamless deployment going forward. This functionality would not be possible without Elliptic Labs' AI Virtual Smart Sensor Platform, the key driver of this new true interoperability connectivity solution between devices. Our team has worked tirelessly with the customer to deliver this groundbreaking feature, and I am extremely proud of what we have accomplished together. With our technology at the core of their internal connectivity solution, we are confident in the strength of our partnership and the potential for a high pace of device rollouts going forward. This new interconnectivity setup has cemented our position as an essential technology provider for the laptop customer. Earlier this week, as I mentioned, we signed two new multi-year laptop contracts with this laptop customer, covering both commercial and consumer laptops, as well as PC accessories, to be included in both contracts. The contracts contain a mix of AI Virtual Seamless Sensor, as well as a second sensor, the AI Virtual Human Presence Sensor. These agreements have a combined minimum commitment of value for approximately NOK 55 million. The majority of the revenue from these contracts will be mainly recognized in Q3, with some falling into Q4. For those who follow us closely, you will note that we normally don't disclose contract sizes due to confidentiality obligations. In this particular instance, the customer has allowed us to report a minimum commitment due to the change in the license structures and the impact this had on revenue in this Q2 quarter. In other words, just to underscore, we will not be going on reporting minimum commitments amount for contracts in the future as a general statement. All right, summing up, we are maintaining significant commercial momentum, both in terms of pace of model launches and new contract signs. So far in 2025, we have launched on 25 laptop models and 43 smartphone models. Of the top of the 25 laptop models, nine models have been deployed in dual-sensor configuration, meaning both the AI Virtual Human Presence Sensor and the AI Virtual Seamless Sensor. We continue to see increased demand for both sensors. As such, we have launched 34 virtual sensors year to date across 25 laptop models, compared to 16 virtual sensors for the full year in 2024. The number of sensors is important as we charge a license fee per device we ship to the end customer. This is also charged per product, so per virtual sensor. With our current launch pace and outlook going forward, we have set a solid foundation for revenue growth for the full year 2025 and onwards. With that, I will leave the word to Lars to take you through the financials.
Thank you, Laila. Now let's move into the Financial Review for Q2 2025. As we continue to build a solid foundation for a durable, profitable growth, our goal is to ensure sustainable profitability by combining growth in top-line revenue with disciplined cost control. I will walk you through the numbers and trends shaping our financial performance this quarter and the broader outlook for Elliptic Labs. In Q2 2025, revenue from customers came in at NOK 24.6 million, making the first six months of the year just over NOK 51 million. It's down about 9% from the same period of 2024. As Laila mentioned, the decline in the quarter was driven by deferred laptop revenues from the new laptop license structures from Q2 2025 into H2 or second half of 2025. We continue to remind you that revenues tend to fluctuate from quarter to quarter due to the timing of these revenues or contracts and new product launches and shipments into the market. With announced laptop contracts containing a minimum commitment of NOK 55 million, the majority of which will be recognized in the third quarter, we are already positioned to deliver strong year-on-year growth in the third quarter from these contracts alone. This is before taking the smartphone business and other laptop contracts into consideration. With that in mind, we are confident in our ability to continue delivering on growth and the company is well-positioned to generate meaningful year-on-year growth for the second half of 2025. Despite the muted revenue in the quarter, we are maintaining a profitable business on a running 12-month basis. Total revenues increased just over 44% trailing the 12 months to Q2 2025, a period in which total operating expenses only increased by 9.5%. We maintained a positive EBITDA in the second quarter, and with a relatively stable cost base, the company is set to generate a solid profitability during the second half of the year. Looking more thoroughly at Q2 2025, we generated revenue from contracts with customers of NOK 24.6 million, down 27% from last year. Smartphone contracts are mainly pay-as-you-go above minimum committed volume. With the contribution from other operating income, the quarter ended with a total of revenues of NOK 25 million. Operating costs totaled NOK 23.9 million, comprised of employee benefit expenses at NOK 18.3 million, up from NOK 17.1 million last year. Reflecting additional three FTEs year -on -year, it should be noted that employee expenses are typically lower in the second quarter of the year due to holiday pay adjustments in Norway specifically. Other operating expenses remain largely stable at NOK 5.6 million, slightly down from NOK 5.7 million in Q2 2024. In sum, EBITDA remained positive at NOK 1.1 million, despite the top line affected by revenue deferral. As always, we remain focused on balancing investment in growth with cost management. Turning to the cash flow, we delivered a negative operating cash flow of NOK 9.3 million in the quarter, compared to a positive cash flow of NOK 12.1 million in Q1 2025. Key contributors were a loss of NOK 10.1 million before tax, NOK 2.2 million increase in receivables from new contracts, and NOK 8 million decrease in payables, including payout of holiday pay and board remuneration. In comparison, we generated NOK 18.5 million from outstanding contracts in the first quarter of the year. Investments remain relatively stable and are primarily reflecting R&D, supporting our AI Virtual Smart Sensor Platform. The financing cash flow reflected repayments of NOK 1.6 million for lease liability, and the final repayment for Innovation Norway of NOK 1 million for short-term debt, and NOK 0.4 million of interest payments. All of our revenue is invoiced in USD, so exchange rate fluctuation can affect cash flow. In this quarter, the exchange rate had an adverse effect of about half a million NOK. Our balance sheet remains robust despite a reduced cash position to NOK 57 million at the end of the quarter. As I just mentioned, other current assets increased by some NOK 5 million due to increased receivables from new contracts, while non-current assets remain relatively flat. We continue to work with our customers to better our payment cycles related to the milestone revenue. Liabilities are down in the quarter, mainly from payout of holiday pay, but also the repayment of Innovation Norway. On other equity ratio is slightly up to 91%. With our current cash position and the outlook from our contract space, we remain well-funded to execute on our growth plans with the financial flexibility required to invest in innovation and new customer deployments. With that, I will hand the final words back to Laila.
Thank you, Lars. All right. Before we run off, I want to remind you of the direction we are working towards as a company. We have spent a decade building a solid platform. We have developed deep expertise in AI, software, operating system, sensor, application, large language model. Yes, basically the whole full software stack. As I've said earlier, we separated our journey into three phases, each building on top of the previous phase. We started out our journey in phase I, replacing hardware sensors with AI Virtual Smart Sensors and building a foundation with our customers. We continue to do so and to expand our position with our customers. We're currently in the second phase, focusing on device interoperability, where we're moving further up the software stack and deliver true device-to-device interoperability. Going forward, we will continue to work our way into the third phase together with our partners and customers to deliver true contextual intelligence on the edge. Finally, let's revisit our assumption to drive future success. We are focused on maximizing our contract base, strengthening customer relationships, expanding partnerships, and increasing AI Virtual Smart Sensor adoption. Our AI Virtual Smart Sensor technology is rapidly expanding across industry, improving device intelligence and user experience. We are working closely with OEMs to integrate AI Virtual Smart Sensors into more devices, including laptops and smartphones. Our focus is clear: optimize contracts, increase adoption, and scale product deployments per device. From our existing contract base and recent announcements, we can say that we are confident in achieving a double-digit growth rate for 2025. Thank you. Now we will take a quick break to review the questions, and we'll be right back. Thank you. Welcome back. First, just thank you to the investor gentleman that gathered a lot of questions and sent it in beforehand. I appreciate that. We have lots of questions.
Lots of questions.
We'll jump right in.
Yep.
I'll just start here.
You please start.
I'll start, and then we can sort of.
Yep.
Lots of questions around the contracts. It's understandable. Do the new contract from 11th of July replace all existing contracts with the customer, HPD , etc., etc.? The answer to that is no. This is a restructuring of the frame agreement. All contracts will continue as before, and they are not changed. All the contracts that are following the announcement of 11th of July for the internal software come under the new framework. These contracts actually also follow the same revenue patterns. Basically, upfront minimum commit and then sort of pay as you go because it's a minimum. When it succeeds, we get, of course, we will keep getting more revenue. The July, just to sort of shed maybe a little bit more light here on the call.
Yes.
Because as I mentioned before, when we send out a press release, we have more restriction on what we can share and not share due to the customer. This is obviously Lenovo that we're talking about, and the contract that for July 11 was basically us helping them migrate from a third-party software application to their own internal software.
Yes.
At least we can share that here today, but it's not something we can broadly share in Business Wire and over OSE. All right. Shall I?
Just please continue. There's quite a few questions.
Yeah. With the new contract, 11th of July, will it be rolled out on all new laptops for that customer? It's not on every... To be clear, the two contracts we have signed is...
This week.
This week is the beginning. This is not covering their whole portfolio. I can say that at least. This will, you know, help them to migrate over to the internal, I would say, app system or app ecosystem that they have. This will support—they're now deciding to also support and want to roll out accessories. We can't talk about the timing on that. That's the purpose of the contract. Basically, going from an external application to their own internal. That is the major difference. Okay. Which quarters will be affected by the new structure? The revenue was pushed from Q2 to the majority of it in Q3. I think we also addressed this in the presentation, but obviously these questions came before we presented.
Yep.
The majority will be in Q3, and the remainder in Q4. The timing of new potential contracts will not be affected at all by the new structure.
Yeah.
You want to...
No, I can just add that this was a one-time thing, as you mentioned, the migration part, like, and then, of course, contracts coming after. This was a one-time thing. New contracts will... Potential new contracts will not be affected by this.
Yeah, yeah, no.
Yeah.
Will the new license structure push the midterm revenue target closer or further in the future? It would not really have an impact. This was a short-term effect. Are you still... Are you in dialogue with other PC OEMs? When will you sign those contracts? Yes, we are working with other PC OEMs. We cannot comment any further on when contracts and any potential rollout will occur. Of course, as soon as we have any specifics that we're able to share, we will do so.
How big do you see the political market risk to, and then specifically Chinese customers? We addressed this in the report, but we continue to monitor the situation. Thus far, we are not directly impacted by it, but of course, we're monitoring.
Yeah.
Yep.
Okay, take another one.
Yeah, please.
Do you pursue a long-term partnership with other major chip manufacturers than Intel that was announced in May 2025? Do you see such a partnership as critical for Elliptic to gain new customers such as other PC OEMs? Okay. Intel is the largest for now.
They are by far the largest still.
That work with the PC OEMs. Also AMD. We work with AMD. We have already also in the past launched with laptops that are running the AMD platform, as well as Qualcomm has a small portion. We work with Qualcomm. Of course, we've been working with them for a decade in the smartphone market, and it's basically the same processor. We work with them. It's not a problem. It's the same. I also can bring up NVIDIA. NVIDIA has also, as public information, they have also been talking about potentially a processor platform for the PC as well. We talked to them as well. We work with the other. You have to sort of work with all the chips at the manufacturer to make sure. This is also like, let's face it, the customers are pushing the PC, I'm sorry, the chipset manufacturer to work with us as well. This is something we have to do to make sure that we can deliver. I can ask this then.
Yes, please.
Is the current cash position sufficient?
Yes, it is.
Okay.
There's a question about expenditures or cost base, and I think I addressed it quite clear in the presentation, but the cost base has stayed relatively flat over the years. The past one or two years, 9.5% growth the last 12 months. We do not need to add that many people to do the growth we foresee now. We will add, we have addressed, I think every quarter we address it. We will add some people, but not on a high level. As we sell more licenses, we do not add cost. One license or 100 million licenses is the same cost base for us. It is very scalable in that respect. That's also why we can keep the cost base flat.
Yeah. I also get questions here about competing technologies. I mean, this is very, very broad. Can you elaborate on competing technologies and companies?
Please do.
Yeah. I'm just going to focus for the interoperability and this device-to-device connection. You know, we have what we see in the market right now to have a software solution. Just to shed a little bit more light as a reminder and also for people that are new, what we are doing with some of this device-to-device connection is basically, you know, let's say if you have a Lenovo laptop, with a simple tap on the side of the device with either an Apple or an Android phone, you can connect the two devices and start moving application pictures, etc., between the devices very easily. If you are on a Teams call on the phone and you want to easily put that over to a laptop, you can do so by just tapping on the side of the display and then move that conversation over. Also, in regards to, for example, if you want to attach any type of accessories, you can just simply tap your headset or your mouse, etc., and then it will very, very seamlessly connect between the devices.
Can I just, there's a point.
I was just going to say that this is, we are the only one in the market that are doing software. We also have a strong patent around that as well.
Yeah, that's great. Just to, because it's on the tail end of another question that we have addressed already, does the move, like we did a strategic move now, carry any operational risk when we move from the external third-party app to the internal?
It's actually better, I would say, because we get a greater stickiness with the customer when we go in and look at their own technology solution. They will also, without sharing too much information, we know also that we are talking to them and other customers about supporting other types of sort of general standard applications out in the market. All laptop providers have their own sort of internal proprietary software. To get in the middle of that and get, you know, and really have a close integration, that creates a very good stickiness because they get very dependent on us for this broader rollout when they're going to deploy this, I call it like Smart Share or an easy way to seamlessly create device-to-device interoperability. This is, I would say, I'm very pleased that they moved away from that third app. I'm just going to say that was from Intel and the Intel Unison. I'm very happy that they moved over to their own internal and that they did that. We're happy.
Okay.
I think we have covered most of the, yeah, most of the questions. All right.
Thank you.
Thank you very much, and have a good day.