Good morning, and a warm welcome to Precise Q3 2020 presentation. I will, together with our CFO, Ulrik Nilsson, present the Q3 financial result and also give you some highlights on how we see the next coming quarters, and also more details about the potential in the YOUNiQ Access market. Next slide, please. I'm happy to present another quarter with a positive EBITDA. The sales is in line with our earlier communication, and we generated SEK 23.1 million in this third quarter. We have a very good cost control, and we have been able to continue our investment in the YOUNiQ, with clear focus in the access area. We can also report that the sales for the total period increased with more than 30%, up to close to SEK 70 million .
The acceleration in the YOUNiQ area continue, we have now been able to get the first cooperation in place with access platform suppliers such as RCO and Telcred. This is a key area for us in the go-to-market strategy, to be able to accelerate the rollout of the YOUNiQ Access product. We can also see that our strategy in the mobile area continued to generate a positive EBIT. We are now supplying software for optical sensors to all major Android OEM, together with partners such as EgisTech. Even if the industry have been hit by the coronavirus situation, we have been able to continue to deliver our software to our partners, and we have today a very stable way of working with strong teams in Asia, Europe, and U.S. We don't foresee any major changes in our sales for Q4.
We have a stronger financial situation today compared to one year ago. Next slide, please. The vision. We continue to drive our daily operation in line with our strategy and vision. No matter who you are and where you are and what you do, you should always have access to your digital identity, owned and controlled by you in a safe way. We have now started to communicate even more about the benefit of that vision. You are the key. Next slide, please. Digital identity. The trend is clear. We use more and more digital products and services that need identification and verification of the users. We can also see that it is complicated to remember all passwords, codes, et cetera, and we don't want to carry around with cards, tags, et cetera.
We are clearly moving towards the situation where the technology should help and make life easy and safe. We have the solution. You are the key. It's also very clear that due to the pandemic situation, people are reluctant to touch public devices, and therefore, we strongly believe that touchless interaction in public areas will increase. That means our YOUNiQ Access solution with face is perfect in public areas. Fingerprint sensors are perfect with private devices such as mobile phone, tablets, and private computers. For face in public areas and fingerprint sensors in private areas is the way forward. Our YOUNiQ solution is a fantastic combination of ease of use and high security. We can see a huge potential in the access area, which is the focus area for us right now.
Even if we have had some customers and trials outside Nordics, our main market focus now is Sweden. The addressable market for biometric solution for apartment blocks, commercial building, constructions, gyms, industrial and public areas just in Sweden is around SEK 1 billion. The trend is very clear. There is a need of secure and convenient access solutions. Ulrik will later give you more information about the addressable market in Sweden. Our go-to-market activities are divided into three areas: own sales resources, key account, where we drive sales via larger account and create an interest in the market, affiliate program, where selected people give us information about opportunities. Finally, the major part where we have integrated with key platform players such as cooperation with RCO Security. We have also, after the call, to communicate the integration done with Telcred, where we also combine a solution with Axis Communications system.
We have today more than 40 installations up and running and more than 1,000 people registered for YOUNiQ. We started this year to roll out the product, and we continue to accelerate the rollout with more partnership and more users. Acceleration is key. The market is there. We have now business set up where we have direct contact with the end consumer, and the contract is based on number of users. A normal contract is over three years, which means we have been able to move the company closer to the end users and with long-term contracts. Ulrik will now give you more details in terms of the addressable market potential in our focus area. Please, Ulrik.
Thank you, Stefan. Please turn to page five. I will guide you through how we have worked with identifying the addressable potential in the access market. We have, as Stefan earlier said, identified six verticals: apartment blocks, commercial buildings, construction, gyms, industrial, and public. For these verticals, we have gathered the facts using databases like Statistiska Centralbyrån, giving us a base in number of buildings and how this base historically has developed. Please turn to page six. From the base described, we have calculated the development and estimate the number of buildings in the six verticals to be approximately 450,000 properties. Based on interviews and desktop research, we have identified the current split between mechanical locks and electromechanical locks to be 35% for apartment blocks, commercial buildings, industrial and public, and 80% for construction and gyms. Our focus is on properties using electromechanical locks.
Properties using mechanical locks deciding to switch is obviously an upside, which we have not included in the calculation. We have not included any assumptions of that the adoption of electromechanical locks in new properties will increase. We believe it's likely, but we have not used that number in the calculation. The average number of installations per building is assumed to be one, a number that obviously could be higher when a property contains multiple tenants. The annual revenue per installation from fees were set to approximately SEK 35,000 per year. We've assumed an adoption rate of 15% by 2025. This adoption rate is split as that the apartment blocks will have an adoption rate of 10%, commercial buildings 20%, construction 20%, gyms 30%, industrials 20%, and public 10%. Please turn to page seven. Adding this together, there is a market potential of more than SEK 7 billion in Sweden.
Looking closer to this for each vertical, we can see that the apartment blocks, there is a market potential of SEK 1.4 billion. We believe that the adoption rate is 10% here in 2025. For the commercial buildings, we see that the market potential is SEK 1.2 billion. The adoption rate we foresee is 20%. On construction, we estimate the market potential to be SEK 1 billion, and the adoption to be 20%. Gyms, SEK 116 million, and a 30% adoption rate. For industrials, SEK 1.4 billion with an adoption rate of 20%. Public, SEK 1.5 billion with an adoption rate of 10%. We also see that there are customers requesting us to deliver on hardware and installations, not being a core of what we do, but we believe that there is a SEK 500 million potential market, and we estimate 9% of this to be addressable.
In total, we look at SEK 7.2 billion, and an average adoption rate of 15% would bring the addressable market to more than SEK 1 billion. Please turn to page eight. Converting these adoption rate, then we see that this is giving us a market for apartment blocks, which we can address of SEK 144 million. Commercial buildings, SEK 247 million. Construction, SEK 192. Gyms, SEK 35. Industrial, SEK 283, and the public, SEK 148. Adding this together gives us a market potential in Sweden standalone in excess of SEK 1 billion. Currently, the market for this solution is untapped. Market potential is likely to increase when awareness of the technology arrives. Our ambition is to remain market leader, and we continue to invest in this great opportunity. In 2025, we foresee digital identity to be the largest business area within Precise.
With that, I conclude and hand over the word to you, Stefan.
Thank you, Ulrik. Please page to next slide. The mobile. We continue to deliver very stable results despite the pandemic situation in the world. A global setup enable a very efficient support towards all our customer, and we continue to win projects with our partners at leading OEMs such as Samsung, for instance. We have also, during the last month, continued to develop our main platform and presented to our key customer a new software product with a very good pre-processing quality. The plan is to launch this version to OEM later this year and beginning of next year. Our ambition is to deliver a similar result for Q4, which means we have much more stable situation in the company now compared to some years ago.
The trend is clear that in parallel with more activities and applications are handled via mobile phone and tablet, the need for higher security level is needed. We will, together with the partners, drive the requirements for security. We have today an extremely good quality, and we continue to develop it further with our partners. Next slide, please. The activities in the smart card area has increased due to the pandemic situation. The need of contactless payment is actually more relevant than ever. Tests and pilots are running, and we work closely with our partner NXP to launch a product as soon as possible. Due to a very complex value chain and several companies' involvement and need for approval, it takes a long time, longer than most of us had hoped for.
We are ready to launch, but the volume is not there, and there is no indication of huge volume for 2021 either. We don't need volumes in the smart card area for future success, and if it will happen and when it will happen, it will be a bonus for the company. It's very clear that touchless is the future for devices in public area, and there are YOUNiQ solution with face match perfect, and then we have private devices such as mobile and computers and cards where fingerprint is a perfect solution. There will be different payment methods going forward, sometimes with your mobile, sometimes with your card, and sometimes with your face. Palm and other biometrics will be used when you do payment in the future.
You are the key for future payment. Our digital end-to-end solution is perfect in this physical distancing world we are right now into. Independent if it is in the digital area, identity area or mobile or smart card, we always need these type of payment methods in the future. By that, I hand over once again to our CFO, Ulrik.
Thank you. Turning to the financial development, please turn to page 12. The execution of our strategy continue. Our mobile business is healthy and profitable, we work towards expanding our role with taking responsibility for larger parts of the delivery. Precise YOUNiQ has received a very good reception in the market, we already have more than 40 installations throughout Sweden, we expect to continue to accelerate the pace in which we add new customers. Net sales in the quarter totaled SEK 23.2 million versus SEK 27.5 million previous year. The net sales were split between royalty revenues, SEK 11.3 versus SEK 8.2 previous year. License fees of SEK 9.0 million versus SEK 15.9 previous year. Support and maintenance of SEK 1.2 million versus SEK 2.0 million previous year. Other of SEK 1.6 million versus SEK 1.5 million previous year.
The increase in royalty was primarily attributable to the customer Egis Technology. The fall in license fees is a result of previously communicated strategy in which we focus on deeper collaboration with fewer customers. The gross margin in the quarter totaled 79.8% versus 89.2% previous year. Change is primarily related to the change in product mix. Amortization and write-downs of capitalized development expenses was SEK 2.5 million versus SEK 2.6 million previous year. The amortization required in tangible assets totaled SEK 0.2 million, which is the same amount as last year. Please turn to page 13. As said previously, our mobile business continued to deliver healthy profit. We continue executing our strategy, working in deeper collaboration with key customers, which is allowing us to have full leverage on scalability. The digital identity potential has further confirmed our strategy on investing in future growth.
Continued investments, primarily in the area of digital identity, accounted for the biggest cost increase. We continue to invest in digital identity, which is primarily reflected in the increase of spend in R&D before capitalization. We continue to improve our ways of working, driving both efficiency and effectiveness. The overall operating expenses for the quarter decreased by SEK 0.6 million and totaled SEK 20.7 million versus SEK 21.3 million previous year. The operating profit loss for the quarter totaled minus SEK 2.2 million versus SEK 3.3 million previous year. The decrease in operating profit loss is explained primarily by lower net sales and the lower gross margin. The earnings for the period totaled minus SEK 2.2 million versus SEK 3.2 million previous year. Total depreciation amortization totaled SEK 3.3 million, which is on the same level as previous year.
The EBITDA is positive for the fifth consecutive quarter and totaled SEK 1.1 million versus SEK 6.6 million previous year. Please turn to page 14. Cash flow and investments. The cash flow for the quarter from operating activities was strengthened and totaled SEK 0.5 million versus minus SEK 3.4 million previous year. The working capital is stable versus previous quarter. The investment in the quarter totaled SEK 5.4 million, which is primarily coming from development expenses. The development expenses totaled SEK 4.5 million versus SEK 1.0 million previous year. Looking at the financial position and the liquidity, cash and cash equivalent increased year-over-year by SEK 10.4 million, and at the end of the period it totals SEK 71.3 million versus SEK 60.9 million previous year. The strong and healthy cash flow from our mobile business fund the investments in Precise YOUNiQ, and we're building a foundation for continued growth.
Back to you, Stefan.
Thank you, Ulrik. Please turn to slide number 15, the summary. We are now five quarter in a row where we deliver positive EBITDA, generated from a stable and healthy mobile business. We continue to invest in unique product, especially now in the go-to-market with our affiliated program, internal key account sales, and cooperation with key platform companies such as RCO. Our end-to-end digital solution with cloud, we have now launched and our first product with Telcred and an access solution. We see an addressable market is in access that is huge, we're driving the market and building it with an ambition to remain as market driver for this segment. We have launched our new market communication strategy, focusing on the end user's benefit. Very clearly communicate you are the key, no matter of who you are, where you are, and what you do.
Finally, we have a very stable and healthy mobile setup despite the COVID situation with operations in Asia, U.S., and Europe. Please then turn to next slide. Now we are open up for question. We have received a lot of questions via mail. We start to open up for telephone questions.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. That is zero one to register for a question. We have a question from Jesper Birch-Jensen from ABG. Please go ahead. Your line is open.
Good morning, Stefan and Ulrik, congrats on the strong report. A couple of questions from me. Starting off, you mentioned that you've signed several new clients within Precise YOUNiQ. I was wondering how many buildings would you estimate that these deals will add to your base within Precise YOUNiQ?
Sorry, it was a little bit tricky to hear the question.
Sorry.
buildings?
Yes, how many buildings do you estimate that these new agreements would add to your base within Precise YOUNiQ?
Yeah. As Ulrik presented earlier, the potential market here, the addressable market is approximately SEK 1 billion, and the average revenue is for us, we have been calculated with 35,000 per year and installation. That will differ a little bit, but what we said is that there will be one installation per facility that we think can have this type of installation as such. Today, we have 40 installations in Sweden. We should remember that we started here in the beginning of the year with zero. During this year now, we have built the foundation, we have built the platform, we have integrated with other platform suppliers like RCO and also with Telcred. We have also integrated with S2 Security, which is a huge platform in the U.S., and we have more platform in Sweden ongoing. It will of course increase over time the number of installations.
Of course, we can see a huge interest in the market, and there will be more installations coming month and next year.
Okay. The annual price of SEK 35,000 per building is representative of the new agreements which you entered into during the quarter as well?
Yeah. The SEK 35,000 is an average we have calculated going forward. Of course it depends on which type of installation it is. Sometimes it's a very high security, very few people using it, and sometimes there is a lot of user. For instance, we have gym chains, we have offices and factories and other type of installation that we have another cost structure, but the volume is there, of course. The average have been calculated on SEK 35,000 per installation a year.
Okay. Thank you. Just a question on your addressable market here, which you calculated to SEK 1 billion in 2025. I was just wondering where does it stand today, and what kind of growth rate are you seeing between, let's say, 2021 and 2025 on an annual basis?
It's a very good question. When looking at it, we are, as I said earlier, looking at.
A market that is untapped. That there is today not a solution that really compares with what we're doing. We are providing remote onboarding, remote off-boarding, touchless entry. The market is untapped and we are developing the market. You could say that the market today, we have the market-leading position, given that we are first on the market and we provide what we see as the best solution.
We are where we are today, and we are building a market. We're seeing that in 2025, we will have reached an adoption rate of 15% out of the 7 billion tech.
Got you. You actually touched upon my next question, but I was wondering just what kind of competitors do you see trying to enter this market as well, besides your solution? You kind of touched on it already. Do you see any clear competitor and how are they doing anything different from you, your solution?
As of today, we haven't found anyone that actually doing the solution as we doing. End-to-end digital onboarding remotely and touchless also, which is extremely strong selling point now in the COVID situation. There are, of course, other solutions like mobile phones and all that, you still need devices. With our solution, you only need your own body, so to say. We have seen that in U.S. and in Asia, there are similar solution, it's a very clear link to a specific hardware. We are hardware-agnostic, which means that we can work with all different camera solution and all different computer solutions, which is absolutely unique. Right now, there are no competitors out there with a similar solution. Of course, that will change. Of course, this is a very interesting market for several players out there.
Our ambition is to remain in the leading edge and continue to develop our product going forward.
Got you. Thank you. Just a final question from me on the gross margin, which was obviously a little bit lower than we've been used to, perhaps driven by product mix. I was just wondering how should we interpret this going forward? Royalty revenues were up, licensing royalties were down. Should we expect a lower gross margin going forward since you are focusing on royalty revenues?
I think that answering that question is not a one-liner. Looking at when we're selling the license fee and as well with the royalty fees, we do see that our business is really having an impact from scalability. When we can manage scalability, having a higher revenue, that impacts the gross margin immediately in the business for mobile and smart cards. We are now entering a new market with digital identity, and we see that we're developing the market, and we have a lower margin in the digital identity area.
Got you. That's all from me. Thank you for taking my questions.
Thank you.
I remind you that if you want to ask a question, please press zero one on your telephone keypad now. We have a question from Jörgen Carlsson, private investor. Please go ahead. Your line is open.
Hello, Stefan. Thank you. First I have some questions regarding the payment card. I know that Precise Biometrics has an old cooperation with a sensor company called IDEX. Is that cooperation still alive? Can you confirm if IDEX use Precise Biometrics software in any of the payment card solutions IDEX is involved in now?
Thanks for the question. That's correct, that we have had a cooperation with IDEX in the past, but we don't have any cooperations as we speak right now with IDEX.
Okay, thanks. Also, we know that Precise Biometrics has a cooperation with NXP. How is the progress there? Do you have any cooperations with other secure element companies or fingerprint sensors companies? Sub-question to that, can Precise Biometrics sell two software licenses for a payment card, one to the secure element, for example, NXP, and one for the sensor company?
Yes, we have ongoing discussions and collaboration with other companies outside NXP also, of course. There is no exclusivity between us and NXP. NXP is our most important customer right now. We have been working with them for a very long time, and we really support them to be able to get out in the market. That's our main focus. Yes, we have ongoing discussion with other platform and sensors suppliers also, of course. Yes, as you said, there is two different way to handle the matching in secure element or outside the secure element. Yes, we have two different products, so it's possible to have either/or. We, of course, are pushing the market towards the secure element, because that's the wallet ID with this payment card to make sure that it's a very safe transaction.
You're right, there are two different solutions in the market.
Okay, thanks. Maybe that explains the next question. I am not really sure about the technical part here, but there have been rumors of the fingerprint development of the T2 sensor that Precise Biometrics software is no longer needed. We know about the cooperation between NXP, Fingerprint, and Linxens. Can you tell us something about that? Does the T2 sensor handle all the stuff, and can they handle all the stuff that Precise Biometrics software did before?
To clarify your question a little bit, T2 sensor is the sensor from FPC, and we have a cooperation with FPC. There are different ways forward when it comes to FPC, and they have been very clear in that communication. They have their own software and sensor, and are using ours also. It's a little bit a matter of how the customer wants to utilize either our solution or their solution. The important part to remember is that we are hardware-agnostic. For instance, when we are working with some of our customers, they are really interested to have a solution where they are not directly linked only and fixed to one hardware solution. They want to have the opportunity to change hardware because they know there will be a price erosion, the price drop going forward.
By that, they don't want to just rely on one hardware supplier. Our main focus from day one in this area had been to have a software that is hardware-agnostic, and that's our way forward.
Yeah. Okay, thank you. In the Q2 report, you talked about Precise Biometrics' plan about extending your share of the value chain, in terms of software for fingerprint sensors. How has that progressed? Any luck there?
As I said earlier in the presentation, yes, we have presented it for our partners. We have integrated together with some partners, and going forward here in Q4 and Q1, we will continue the dialogue with some of our customers to do the integration in their solutions also. We are a strong believer that with this solution, we will together have much better solutions for our customers and their OEMs like Samsung, et cetera. That's our ambition. In the end, we don't decide about it, but all the test results so far show very good progress in this area. That means, of course, that we take a bigger part of the total value chain in the software.
In terms of revenues, is it much more than today, if you compare to what your software do today?
That, of course, nothing we know anything about. What we said in the presentation is our ambition is that the Q4 should be on a similar level as Q3. What will happen next year, we don't know. Of course, there is a huge price pressure in this area in general. We can also see that companies that have not been able to enter this market have huge problems to enter here. Our ambition is to, of course, to keep the level for the coming year. It's too early to do any forecast prediction for 2021.
Okay, thanks. I also have a question about, I'm not sure if you remember it, but 19th of October, you posted on Twitter, payment with verification done by Precise Biometrics software. Touchless, no limit, no pin. I'm curious about what kind of solution that is? Is that Samsung Pay or is it something else?
That's correct. We utilize social media to communicate interesting things that happen in the market that is relevant for us, and also to give our shareholders a little bit more information what's happening out there. That's correct. It's Samsung Pay, and the payment is done via an A71, a phone from Samsung, which utilizing our fingerprint sensor. That is a fantastic solution, where you do the verification on your own device with your own fingerprint. You don't need to touch any payment devices, and there is no limitation. It's very secure because there's no pin involved. That's correct.
Okay, thanks. Now about something completely else, and that is very interesting. Can you please tell us a little bit about the progress with Infinity Optics? We know that there are ongoing pilots there, but how does it progress?
We continue to do proof of concept with Infinity Optics. The interesting part is, of course, in our overall strategy to have the possibility to do enrollment in one place and then do the verification and access in a different place. That's ongoing. It's, of course, a research program, and we don't know today if it will happen and when it will happen, but the idea is actually supporting our vision to be able to distribute the access possibilities for all users. You are the key. We don't know today if we will be successful. This is part of a bigger research program we are running right now.
Okay. Are you closer than the last Q2 report?
You're always getting closer to it for every software.
Okay, got it.
Of course, here we need to bear in mind that this is a research program, and there are a lot of ideas in this area how to do that. We don't know when it will happen, but for sure, we continue to invest in this area because that's important for us.
Yep. Thanks. I also have a question regarding the cooperation with Covr Security. I read in their news mail about their involvement in government ID implementations in Africa, it's Kenya and Ghana, and also a European banking platform. Can you tell us if Precise Biometrics are involved in any of Covr's business here?
As earlier communicated, we have a cooperation with Covr, yes. What we saw here in the beginning of the year when the COVID situation hit the market, then especially in the financial and bank area, everything get much slower, and that was the reason why we focused on the access area. What we have together with Covr is that they have their own solution, we have our own solution, and together it is a very strong solution. They are able to sell their own solution without us, and we are able to sell our solutions without them. Right now, we are not part of any program in Africa. Our focus right now is actually Sweden and Nordics for the access. Then, of course, the mobile is a little bit in U.S., but in Asia.
The cooperation is still up there, and we are selling in their solution when it's relevant, and they are selling in our solution. When we will have the first customer there, then, of course, we will communicate that.
Okay, thanks. We have, I'm not sure if you will tell anything about this, but there is a cooperation between the sensor company Betterlife, where Precise Biometrics has a cooperation, and the cooperation between Betterlife and China Semiconductor Industry Association. Do you know if they have any products yet or any services where Precise Biometrics software is used?
As you said, we have a cooperation with Betterlife, other than that, I will not answer any question in this area. It's too early. Of course, we're monitoring what's happening there, but right now it's nothing that have any impact on our financial situation.
Okay. I'm interested in Egis. Egis has filed a patent lawsuit against Goodix, and Egis is seeking for around $13 million in damages. If that lawsuit is successful, do you see that Precise Biometrics can have a share of that money because of lost income that Goodix has taken?
No, we are not at all involved in that. That is something between Goodix and Egis. We are only supporting Egis, our partner, with information and technology and all that. Of course, we are happy if they are successful because then we are successful. We are not at all involved in that patent lawsuit.
Okay. We also heard that when you extended the license agreement with Egis, Precise Biometrics expected around SEK 60 million as an income for 2020. Do you have any new estimates for 2021?
It's too early. As I said earlier, we are focusing now on the Q4, of course, and the acceleration of YOUNiQ Access. We will be in a similar level for Q4 is our forecast. What's happening in 2021 is too early to have any comments on.
Okay. Last question. I'm little bit curious about, we have seen so many Nordic biometric companies, such as Fingerprint, IDEX. I wonder, they are thinking that the payment card market will go boom. It sounds like tomorrow. You're a little bit more cautious about, I'm going to say that if there will be any revenues from payment cards next year, 2021, that is a bonus. How can there be such a difference between what they think and what Precise Biometrics thinks?
I never comment any other company's forecast and all that. We are utilizing our source in the industry when we're talking with our partners and all that, and that we then have as an input for our estimations. What other companies estimate and their forecast is their responsibility. I can't, and I will not comment their forecast.
Far, you have been correct. It's quite funny to see how they think that it will happen so soon. Yeah. Thank you very much, Stefan.
Thank you very much. A lot of good questions. Any other questions on the telephone?
No, there are no further audio questions registered.
We still have some questions via mail, so I will try. Most of them we have answered, I think, but there have been a question regarding our pilots at the hospitals and the status there. It's ongoing. We have actually more hospitals now that are interested in this solution. We should remember that this environment take very long time before any decisions. We can see there is a huge interest from the people involved and hopefully we will get something here during next year. As I said earlier, it's a huge potential, of course, as Ulrik said earlier, in what we call the public vertical. It will take some time before we get into that. When it comes to overall, when it comes to the verticals that are short-term, very interesting is, of course, the commercial building construction and industrial and some gym.
Public is a long term that we need time to invest more into. Yeah. I think we have asked more or less all questions. Do we have anything else, Ulrik?
We have a question also about the sales to Egis Technology in the quarter. As we have communicated, we are working very closely with Egis Technology. Looking at the year-to-date figures together with Egis is not exactly released in the report. When we look at the sales to Taiwan for the period, we have SEK 45 million in sales versus previous year's SEK 23 million. We are working together with Egis very closely, and we are seeing a stability that we have not seen in the previous years. We believe that the increase that we are seeing from SEK 23 million -SEK 45 million year-to-date is very nice, obviously. We see also that the dollar rate as such is working negative to us, given that the Swedish krona has been strengthened against the U.S. dollar.
To answer the question regarding sales to Taiwan for the period year to date, we see dramatically higher sales.
Okay. Do you have one more? We'll see here. We have a few more.
We also do have a follow-up question on the phone from Jörgen Carlsson.
Okay.
Yeah.
Yes.
Please go ahead, Jörgen. Your line is open.
Thank you. Sorry, I have a couple of more questions if there are time. I take the opportunity here. I am a little bit curious about if Precise Biometrics knows if your software is only used by Egis' optical sensors or if they also use your software to their capacitive sensors.
A good question, and the answer is that our software is used for the optical sensors. The capacitive sensors, they are using their own software.
Okay. Is there any ongoing plans, do you try to come into the capacitive sensor market more?
There is always an ongoing discussion about that, of course, because we have some good software for the capacitive sensors also. What we should remember is that the margin is extremely low in the capacitive sensors, extremely low, and therefore the opportunity for us to earn money there is very limited. We need to have huge volume to enter that area. We have, of course, ongoing discussion with Egis Technology and other of our customers in this area. It's very tricky to earn money in that segment right now.
Okay. Thank you. I'm also a little bit curious about, is it possible to update hardware, a phone with Precise Biometrics software via OTA, over the air, you send over the software. The use case here I'm thinking of is, for example, the phone fingerprint sensor has software from example, Suprema, and then it's updated with the software from Precise Biometrics. Has it ever happened?
The answer there is yes, it's absolutely possible to do that. Of course, it's a little bit troublesome for the end users because they need to do a new enrollment. If you change the software algorithm in the mobile phone, you need to do the registration again with your fingerprint. If it had happened in the past, yeah, it happened several times in the past, and I'm sure it will happen in the future also. It's absolutely possible, but it's a little bit troublesome for the end users.
Okay, thanks. Also, I'm a little bit curious about if you can tell us anything about the difference between, yeah, I call it the norm and YOUNiQ Access solution, and the solution where Precise identification software is integrated in an open cloud-based platform for access control. What is the difference between these two solutions, and will this speed up the sales of YOUNiQ Access?
It's a very good question. I'll try to answer that as easy as possible. It's like this, that our solution is both cloud-based and what we call on-prem, because you need to have, in most cases, on-prem solution, if the cloud connection goes down. That's a requirement for many of the access system. The difference here is that some of the system are only cloud-based, and we support that. If you go into the platform that are available right now, then you are integrated into the platform instead, which means that they utilize the system on-prem. We are working with what we call open API, which means that we are open for different systems to integrate towards us.
When we started this journey here beginning of the year, we just realized that we were a very small player, and we had to integrate towards the available system out there. That had been the most challenging part to get access to this and to be able to do it. We have been very successful with our CEO. Telcred was very easy, and S2 was very easy, and we have more coming around the corner here the next period. That's the difference, that our solution is a cloud-based solution, but it's also possible to integrate it on-prem because we have an open API system available for our partners.
Thank you. I also have a follow-up question. I think Jesper asked about what's the difference between Precise Biometrics access solution and from competitors. For example, you buy one of the solution from Innovatrics, why don't they do the same thing as you do? What does Precise Biometrics add on to the solution?
Innovatrics is a pure face algorithm developer, more or less the same as we are a fingerprint software algorithm developer in the mobile phone area. What we have done is that we have been able to take their software. We have a very deep collaboration with Innovatrics, of course, that we are supporting each other when it comes to roadmap planning and all that. We are integrating that into our cloud solution, and we also integrate it with another liveness solution because it's extremely important that you have a high security level in this type of solution. What we have done is that we have been able to integrate their solutions into a cloud-based solution and also integrate it towards the platform suppliers out there. They are one component in the total picture.
Another thing that is also important that we have added on this is the digital end-to-end solution, which means that we have a remote onboarding possibility and remote offboarding possibilities. They are a face algorithm provider, and we are the solution provider in this system.
Thank you very much for good answers.
Thank you. Any other questions or?
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We have one last question here via mail, and that is when are you planning to launch and expand the YOUNiQ Access outside Sweden? Right now, for sure next year, the focus is Sweden, and it will be. The market potential is huge. We have some activities in U.S. because of our presence in New York State, and that we have integrated with S2. We take that step by step, the focus now is Sweden and the access market. Okay. Thanks a lot, and thanks for all the good questions. Have a wonderful Friday and weekend, and talk to you soon again.