Hello everyone, and welcome to the first quarter 2025 presentation of Huddlestock. It's planned to spend not more than 30 minutes. I will probably keep on until five minutes before half past one, so that there might be some time for questions as well. On the top, you have a button called Q&A, so if you have questions, please type them down in there, and I will look into it after I'm finished with the presentation. Yes, let's just start. Yeah, here we are. This quarter has been a very important quarter for the company. A lot of big things have happened, and we have taken some decisions that definitely change the strategic focus and also put the company in another situation where we are much better fitted and ready for the way going forward. That is the main topic.
I think I would like to start to just have a recap, or not recap, but just to spend a few words about where we are post the transaction we've done. Huddlestock Fintech is still listed on the Euronext Stock Exchange in Oslo. Our market cap is approximately around NOK 220 million. We have two business areas which are both fully owned, and we have now one minority stake in another listed company called Dunn.ai. Our cash position after transaction is approximately NOK 13.5 million on our accounts, and the value of our shares in Dunn is estimated to be around NOK 71 million. We have four offices. It's in Oslo, Stockholm, Copenhagen, and Munich, and we are a little bit below 30 employees. That is now our new basis for looking forward into the opportunities that we think are very exciting.
First, let me spend a few minutes on the transaction that was done just a few weeks ago, where we decided to sell out the part of Huddlestock, which delivers Investment as a Service Platform, to the Nordic area. The rationale behind doing so were at least in two parts. It's on the operational side, where we see that after such a transaction, we will have much more focus on the European landscape. We see that the European market is growing and interesting, and we are well positioned for taking some, what do you call it, some benefits from that. We have a slimmed organization. We are an agile organization, much more focused, and the resources we do have are now able to focus much more on what they are doing, as a consequence of a much less complex organization and business.
From the financial side, it has been an important objective for us to reduce costs and to become EBITDA positive as soon as possible. That has been an objective for at least the last one and a half years, and we have demonstrated quarter by quarter that we have been able to get closer and closer to that objective, but still it has gone quite slow and too slow, in my opinion. During this transaction, we have been able to reduce costs significantly and also reduce our cash burn, meaning that we are now in a financial situation where we have a much better balance sheet, and we have much more freedom also in order to take decisions and define what is the right source of finance if and when needed going forward. In general, we have a much better financial situation and much more flexibility.
A few words about the settlement process of the transaction. The first thing that happened was that we received NOK 10 million. That happened April 2024. The next thing is that we will get paid in shares in Dunn, and the payment of shares will be done in two tranches. The first tranche is connected to two of the companies that are already on the hands of Dunn, and it has been made a vendor note from outside, which will be converted to Dunn.ai shares with a value of NOK 55 million. The third company that was sold out was called Huddlestock Investor Services, which is a licensed company within the securities area. Before that company can formally go over to the hands of Dunn.ai, we need approval from the Norwegian FSA.
We do not know for certain when that will happen, but we expect it will happen in Q3 sometime this year. When the approval is done from the Norwegian FSA, we will receive the last part, the second tranche of shares of a value of NOK 15 million. When all the shares are received at Huddlestock's hands, we will distribute 20% of these shares to Huddlestock shareholders. That means we will probably do that sometime in Q3, depending on the approval from the Norwegian FSA. After this transaction, we are, in my opinion, in a much better position to execute on our long-term strategy. We are in a European market where we see that we have a lot of larger and very interesting potential customers. We will deliver and build our services based on our Nordic experience and Nordic knowledge, where we are very digitalized and automated.
That is something that the European players are screaming for now. To build a business in Europe is no longer only a dream, because we have already signed up the first new European customer, which is Giga Broker based in Germany, and that will take advantage of our platform and transfer the customers from their current platform over to our new platform that is planned to be in production sometime in the second half of 2025. We have a very much less burn of cash, lower cost, and through this new financial situation we find ourselves in, we see also that we now have a wide range of financing sources if we need that. We have a profitable consulting business, Visigon. We have a revised strategy that is now during 2025 to be put in action.
What is important there is to take well care of that business since it is profitable, and in my opinion, we also have good opportunities for growing that business. Last but not least, as part of the transaction with Dunn.ai, we have an exposure in the future value creation of that company. Dunn is definitely a very, very interesting company with big ambitions. Hopefully, the products and services and the people we have now divested to Dunn, we will also indirectly become a part of the success story of Dunn since we are contributing with important ingredients of their business. Europe is an interesting and very important part for Huddlestock going forward. As I mentioned, Giga Broker is our first European customer.
Instead of delivering all products, services, technology, everything on our own platform and risk and ownership, we have decided to use partners as an important part of that strategy. For delivery to Giga Broker, we definitely are using Tradevest and Devexperts as two examples, but also it's very nice to see that we can use also other parts of Huddlestock and put in the Visigon logo here to show that the product manager for that project from our side is actually one colleague from the Visigon part of Huddlestock. The good thing with the partner model is that we see that we are able to reduce time to market enormously compared to if we had to deliver everything ourselves. Also, the requirement of capital and investments is very, very much smaller and also the risk.
Even though a partner model delivering the services to Giga Broker means that some margins may go a little bit down, this is a way for us within a very, very short time to demonstrate for the market that Huddlestock in Europe and in Germany, firstly, is a player that is able to deliver quality products. Europe is important for us. If you look at the sector we are in, the financial services industry, I'm not the first one saying that this industry is one of the largest and most profitable segments in the global industry. If you narrow it down to Europe, we see that a lot of the European financial industry is still very manual or semi-manual. At the same time, almost everybody has their own mobile phone.
Things are happening, and the players and the vendors that would like to provide investment services to investors, they need now to rethink about how they are to deliver. Mobile phone is, of course, one thing, but also the way the traditional players are delivering services needs to be reviewed. A survey done by Finch Capital indicates that to start to use more modern platforms will reduce their costs significantly. As this seemed to be a very interesting market, we have seen it for a long time, but more and more we'll find this very interesting.
It is expected that there will come new players into the market, and that is also why time to market is so important, so that we can be in place and have customers working and use as showcases for the customer number two and number three and number four and so on. Giga Broker, which is a fully owned company by AVL, was signed up earlier this year, and we started up the project in the end of April. Nothing new of any significance needs to be developed. It's more about to put together all the different pieces so that it works in a good way for AVL. AVL has been in the industry since 1997, a solid customer base, strongly focused on customer service, and have a significant also AUA on their platform.
The challenge from AVL is that in 2025, their customers need to, they would like to access more products than only funds. From the AVL side or Giga Broker side, they really need to have a platform that is so cost-efficient that it is possible to have competitive advantages also in the years to come. The project is so far running along the timelines and the plans we have set initially. We have three streams we are focusing on. It's the technology stream, marketing, communication, and customer service, and legal and compliance. The plan is to launch the platform in the second half of 2025. The good thing with working with partners is not only that you're able to get access to products and services and technology that makes yourself go faster forward, but as the Tradevest example shows, they are in this market.
As they get to understand and know Huddlestock more and more, not only are they an important part of our delivery model, but we also see that prospects are coming from our partners. A following consequence of the partner strategy is that we see that we are now receiving interesting prospects from the European space that they, of course, now are focusing on so that we can utilize the first customer and the success story of Giga Broker as a showcase to also other potential customers out there. The revenue model from our delivery to Giga Broker is mainly based on transaction and assets under administration. What is important to say is that to make sure that this process of onboarding gradually 65,000 customers onto the new platform, we will not do that as a big migration project during a weekend.
We will do it one by one to make sure that each and everybody of the customers are onboarded in a smooth way into a platform with no history. In that way, we will have a very controlled way of getting new customers. If and when we see small hiccups on that process, we're able to solve it smoothly and controlled. That means that the revenues will come little by little and grow steadily. The good thing is that we will do it in a very controlled way. That is very important for me, and it's very important I know also from Giga Broker because of their need of taking good care of their loyal customers over many years.
With this approach of using partners as an important part of our delivery strategy, I said that it reduces the need of building up a big organization, big investments, big time. Our plan will be also going forward the same as it has been so far to make sure that the organization we have in Germany is as small and lean as possible. Also, we see that if and when needed, as we do in this project, to utilize competence and resources from other parts of the group, in this example, Visigon, is also something that we really would like to do and even see more of.
Our ambitions for 2025 is, of course, number one, to make sure that AVL and customers are onboarded in a good way on the Giga Broker platform and see that everything is working smoothly so that Giga Broker and AVL are happy and, even more important, their customers, because that will be our showcase. I'm also personally heavily involved in that project to make sure that we have full focus on that. In parallel, we are working with other prospects, and that is why also it is important for us. I said that to at least have a letter of intent with the second customer in the European or German space is important for us. Of course, to expand our network.
That is important because even though in some way I would like to see that all next customers is exactly the same as Giga Broker, I know that will not be the case. There will be differences in their setup, which custodian they would like to use. It could be on front end and so on. To have a network with participants who can fill in the picture so that we are able to deliver exactly what the customers would like to have is important. That is why expansion of our partners will still be of priority. In addition to our European and German opportunities, we have a profitable consulting business. It's Visigon. The good thing with Visigon is that the revenues have been demonstrated over years to be very steady. We are able to deliver better margins than their competitors, so that's also very good.
The challenge is to make it grow faster than we have been able to do so far. That is also the rationale behind deciding a new growth strategy that we decided just before Christmas, and we now during 2025 will deliver activities on. As 2025 is going through, I expect we also will see a start of a growing top line for the consulting business at the end of this year and into the next year. An important part of the revised strategy of Visigon is to not only deliver hours and into a project. When the project is finished, then the revenue stream is stopping. What we'll do is to, in addition to delivering traditional consulting hours, also deliver components.
It could be technical components, or it could be services of being part of their running business afterwards, so that we're able to also, in addition to our traditional consulting hourly-based revenues, also we'll see more and more recurring revenues as part of the revenue stream from Visigon. In that way, we will be able to both get more revenues out of each customer, but also we'll be able to have more and more part of our revenues from that business coming from recurring revenues and not only based on hours delivered. Let's go to the financial review of this quarter. Let's start on the top. Revenues, if you compare Q4 last year to Q1 this year, it's a slight decline in revenues.
It must be said that the Q4 figures that you see here, that are the revised ones, the audited ones, that was finalized and closed in a couple of weeks ago, meaning that as normal, there are always some adjustments that have been happening during the year that need to be corrected by the end of the year, meaning that some of the revenues here reported for Q4 is actually something that should be during the whole year. Anyway, the challenge is demonstrated here. As I have said many times before, I need to see a revenue and top line to grow more than we have been able to demonstrate during the last year. With revenues going almost flat, then it doesn't be important for me to work on the cost side.
I have said since I started in this position in February 2024 that to become EBITDA positive is an objective. We have, I think, from quarter to quarter since I started in this role, we have demonstrated that the EBITDA has steadily gone in the right direction. It is also something we see here from Q4 to Q1. Even though the top line has been decreased, we see that the EBITDA margin has improved. That is a very, very good sign and also, in my eyes, demonstrates that the long-time work we've been doing has also happened during Q4 and Q1. Still, I am impatient. I think it goes too slow. That is also why one of the arguments for doing the transaction we've done was done, was to improve the capital burn and the cost situation even more.
Since the transaction we've done is quite significant for us, we decided to set up adjusted pro forma figures for Q1. How would the figures look like if we had done this transaction last year and in Q1 only have what we were going with forward? What we can see then on the EBITDA, that improvement has been even better than the 6.4 we ended up in Q1. That means we have a profitable consulting business that is contributing positively, and we have a very lean, but still cost-demanding business in Germany. Without any outlook to any customers, that would be a big challenge. Now, with the signature of Giga Broker and the project going on and expectations of the first revenues coming in the second half, I think that this is a place where we are not, you can never be comfortable when you have negative figures.
It is based on two legs where the leg which is losing money is now in a situation where we are working on a real customer with real revenues that we expect will come in. That is what I think I will say on this slide. That is, we are now in a controlled place where we have much better opportunities also from the financial situation looking forward. Cash flow, yeah, make it short and sweet. End of last quarter or the start of this quarter, approximately NOK 11 million on our accounts, going out of the quarter with approximately NOK 12 million. What is interesting or important to say is that out of these NOK 11.8 million, NOK 8.3 million is part of the companies that have gone out of Huddlestock.
A big portion of this 11.8 is not connected to the remaining Huddlestock, but at the same time, we receive NOK 10 million as part of the first settlement from the deal. Post Dunn.ai deal, as I mentioned on the first slide, we have approximately NOK 13.5 million, if I remember correctly, as a cash position going forward. Last but not least, looking forward into the future, we expect the final closing of the Dunn.ai transaction to be done in Q3 2025, and we are dependent on approval from the Norwegian FSA. We are in a much better financial situation. We have reduced cost, we have reduced cash burn, and we have ownership in Dunn.ai with a value of NOK 71 million as well. When it comes to our business areas, we will be the number one Investment-as-a-Service provider in Europe.
The first customer is achieved, and we expect that the first end customers will be onboarded in the second half of 2025. At the same time, it is important for us to use this first customer as a stepping stone for our future business. That is why it is so important for us to still work hard on sales and the commercial side so that we can attract more customers on our platform. Since we now have a lot of prospects that we are working on, we have set up as an ambition for 2025 to at least sign an LOI with a second customer. Visigon business, healthy and profitable, but with a challenge of top line growth. We are not sitting still.
We have decided the strategy, and we are now executing on that strategy during 2025 and expect to see some positive effects of that from the last part of 2025 and into 2026. That is the slides I had planned to share to all of you. I see that we still have a few minutes left if some of you have questions. If not, please feel free to contact me directly or through our email, investorrelations@huddlestock.com. Let me see, it's a question here in the chat. Hi, could you please elaborate on the revenue agreement with Giga Broker? Is it commission-based or on each trade? Or what basis Huddlestock will get paid? Yeah, we have a profit-sharing model, and the way payment is done is through a combination of capital and number of trades and so on. We have a model where we will get paid.
I think it is per trade and per month. I do not remember exactly how we are counting it. We will split the revenues, split the P&L with Giga Broker. One thing I think it is important to mention or to emphasize is that in my eyes, Giga Broker and AVL are very professional thinking because they are aware that if Giga Broker is not a good customer of us and we do not earn any money, then we will not be a good supplier for them. It is important for them as well as it is to us to make sure that success is shared between the two of us. That is the best I can say in order to remember that you have a Giga Broker and an AVL that has been in the business for many, many years, and they are having a good business.
They are now transforming their business or moving it over to our platform. Of course, they still would like and need to have a good business, and they will do it together with us. It will be a shared model when it comes to profit sharing. Okay. I think I will say thank you very much. Also, to end this presentation, I am extremely excited about how far we have come during this last year. I am grateful to the board being supportive to take necessary actions. Now in the situation we are, in my opinion, we are very, very well prepared for our journey going forward. Yeah, I'm looking so much forward to this, and I'm very energized. Sorry for being that positive, but I think at the same time, it is important to be that.
This is not an easy walk in the park going forward, but with a good team, good board, and some management that is energized and motivated, I am sure that this will be a good journey for all of us and also for our investors. Thank you very much, everybody, for participating.