Clas, welcome to Invest Live.
Thank you so much. Thank you for having me.
Please go ahead with the presentation.
Thank you. I will. I'm Clas Dyrholm. I'm Co-Founder and CEO of Realfiction. We are established back in 2008. We are headquartered, as mentioned, in Copenhagen, which is why I'm doing this presentation in English. We are innovators in display technology and have invented several award-winning display solutions over the years. The last couple of years, we have been focusing on a new technology, which we call Directional Pixel Technology. This is a technology we believe have the potential to redefine 2D multiview and multi-user 3D displays. Can be used for many different things, both in automotive, in desktop monitors, larger screen displays, and I'll come back to some of the use cases. But we are looking into a growing 3D market of what is known as glasses-free 3D displays. Back in the days of the previous 3D TVs, we had these dreaded 3D glasses.
Nobody wanted to use them. But now there is a growing industry of glasses-free 3D displays. Huge companies like Samsung, Sony, Lenovo, and many others are selling these displays currently. They are selling better than expected, so the industry has quite a good appetite for the next generation of products. They have their eyes set on one big limitation of the current products, which is namely that it is basically a single-user product. Some use cases like gaming, for example, or personal design and other personal use cases are okay with one single user, but a lot of use cases really require the collaborative capabilities of multi-user.
All the present displays in the market are based on lens structures or liquid lens technologies that split up the resolution of a display, send some pixels in one viewing zone, other pixels in another viewing zone, and this display technology is great for a single user. It can show a good picture, but for multiple users, there are huge limitations. This is what we are targeting, so Directional Pixel Technology is enabling multiple users to see 3D. Every user will experience their own point of view, can move around and see different parts of the 3D object, and this is really a high request from the display industry for the next generation of displays.
As I said, because it can enable a lot of new use cases, so collaborative mode within a lot of companies are designing products or constructions or buildings in 3D, but it is doing so on a 2D display. Much more effectively done in 3D. Communication is a big sector. Huge company like Google is investing quite a lot of efforts into building the infrastructure for these 3D presence call systems. But again, they are limited by a display technology that can currently only cater one-to-one calling, which is not really the intention from the start go. On top of enabling multiple users in each end, our Directional Pixel Technology can also enable direct and very natural eye contact between the different participants on a call. This is a hugely important thing in communication, of course, as well. Learning is a big category.
It is proven that we, as human beings, learn a lot better in 3D than in 2D. Medical and healthcare in a whole is a big category that is growing, growingly using 3D displays, but is requiring the multi-user and collaborative glasses-free feature as well. There are others, but just naming a few use cases that really depend on the multi-user function. One exciting and upcoming category is also AI-based avatars. Everything from the future self-driving cars to more efficient check-in counters, et cetera, can benefit from AI avatars. But they really have to be able to provide a really personal presence or a natural way of communicating with this avatar. Again, the multi-user feature here is also important. Our technology is hugely different compared to the current technology in the market. It is a patented approach.
We are protected by a growing number of patents, around 15 patent families and more coming. There are no physical lenses here, so we are not subdividing resolution, which is a big differentiation. No matter the number of users in front of the display, every eye will see the full panel resolution. We also have much wider viewing angles, which again is supporting more users in front of the display. This technology is invented by our Head of R&D, Steen Iversen, who is the former Director of Technology in IMAX Theatres International. This is by no means an amateur's tale, if you will. We also have high-volume manufacturing partners set in place. We have announced the first licensed collaboration with Chinese manufacturer Goworld or Shantou Goworld.
Although it's not a household name or at least a company that I knew before, they are a high-volume manufacturer. They are manufacturing several million displays every month. They have the highest quality standards, which is insanely important in many industries here. I believe that we all know quite a few of their customers. They are selling displays in many different categories. Automotive is a big one, that's more than 50% of their revenue. Although we may not know the manufacturer as such, I'm sure that many of us have been driving in some of the vehicles that incorporate one or several of their LCD displays. You're not going to be a big manufacturer in automotive if you don't have your quality under control. This is one of the things they're really good at.
Thanks to this collaboration, we were able to showcase the first demos of this technology early this year. At CES 2026 in January, we were showcasing for the first time for the industry, our first proof of concept of technology that we believe holds the promise for a new generation of multi-user 3D and multiview displays. We later showed it at Display Week, and have held a number of meetings throughout the world with industry players. Again, this first demonstration is a proof of concept, so by no means a final product. Important is also to understand that our business model here is not selling and manufacturing the final product, but more selling a license to our technology. We may also sell some specific components to the manufacturing, but not to manufacture the final products itself.
The first proof of concept here is quite a bulky form factor, as you can see. Initially, it had a very small image, a 4-inch. It also showed a rather low resolution, but it showed a world's first demonstration of this multi-user capability. Three persons could stand in front of a display and see individual 3D look-around views. Look around, meaning that you can move around, see different perspectives, while being multiple persons doing that on either the same 3D scene or three completely different 3D scenes at the same time. Quite magical to experience, although the size is small and all that. Of course, a technology like this, even though it's bulky and early-stage, has sparked up quite a lot of interest. We have huge companies showing interest. We have signed a lot of NDAs, and of course, I cannot share names.
I can name some examples of the type of companies so you understand who it is we are talking to. For example, a global electronics/entertainment company, an online merchant with smart hub products, technology company known for its search engine, a global network in collaboration tools and infrastructure provider, one known for its digital platforms in entertainment and productivity, a global leader in personal computers, workstations, and services, global provider of professional displays and collaboration solutions, a consumer tech company known for smartphones and other devices, a global communications technology brand. These are examples of the type of companies or the companies that we are in talks with. Of course, we have had some feedback, and quite a lot of interest in terms of potential collaboration.
The feedback circles around the leap from the proof of concept to the final product in terms of something like form factor, image size, resolution, but also manufacturability. They have some concerns that we are addressing currently. What we are doing right now is we are, and this is where we will use the proceeds from the rights issue. What we are doing right now is we are developing what we call an evaluation unit, which will have a much more compact form factor. We will show, and we have already demonstrated a larger image, now a 7-inch. We will show a better resolution. Very importantly, one component in our technology, which we call the Spatial Light Modulator or the SLM, has so far been using a liquid crystal called an FLC. The industry has told us that this FLC is a little bit difficult to mass manufacture.
One specific component that we are looking at at the moment is this SLM. We are now in the middle of evaluating, approving a new patented design where we can create the same SLM with the same features, but now based on standardized liquid crystals or nematic liquid crystals, which are widely used in displays today and easier to mass manufacture, and also, very importantly, to scale up in size. Of course, 7-inch or 4 -inch is not the target here. We are targeting sizes like 27-inch desktop monitor size towards larger displays for meeting rooms, for collaboration mode, and going towards quite large screens. Scaling up is super important. Earlier this year, we also initiated a strategic review, hiring Grant Thornton as a financial advisor to do a structured sales process, if you will.
We are looking whether there is a better way of going to market than the license model, because these companies are, again, they are huge and may want to have a more strategic role going forward. Also as they are entering the final stage of development here, they may want to have a chip in. So we are opening up for that, and we have quite some interesting dialogues going. One example here is we are in, and have been for a few months now, in quite a detailed tech due diligence process with a global electronic/entertainment company. They have ordered a couple of prototypes for internal evaluation. We have delivered a prototype. They have an internal track of trying to recreate a multi-user 3D display, but they expect our Directional Pixel Technology to be superior.
This internal evaluation process is ongoing, and the outcome of this evaluation will then determine the next phase of our discussion and potential collaboration. This is an example of what's going on under the strategic review. The management team believes very much in the technology and in the process we are undergoing here, so we are participating as much as we can in this rights issue, as shown here in collectively around SEK 700,000. Summing up here, we are under evaluation by one specific potential large customer that has purchased DPT prototype and is currently evaluating. We will share, of course, news as soon as we have it. We are on the way with the validation of the more manufacturable and easier scaling nematic liquid crystals component, called the Spatial Light Modulator, and expect to finalize this physical validation before the end of the year.
This component has been theoretically studied and mentioned by external experts to be good. We have simulated, but we are now with our manufacturing partner, Goworld, physically building it. Then we estimate to have the evaluation unit completed before the end of Q1 next year, enabling these companies to actually start evaluating it in-house, looking at their own use cases and their own infrastructure. The idea here is to create the evaluation unit and have a small production going, selling it to these industry participants so they can better sort of evaluate the next steps. Meanwhile, we have this ongoing strategic review and those discussions, which some discussions are more towards a development collaboration of projects, where others are more in the sort of potential acquirement scale. This is ongoing and can mature at any stage, really. Thank you.
Well, thank you, Clas. Very interesting topic. A bit complicated, I may add. If we look at the strategic review here, could you just give us a feel for when will that be done, and when will you be able to communicate anything from the strategic review?
It's a very good question. We have been feeling that these huge companies cannot be pushed in time. Although we are impatient, they are not. What I can say is that we expect quite soon to hear news from the evaluation, the customer evaluation that I mentioned here. I would say within maybe a few weeks, maybe even quite a lot sooner, we'll hear more, I think, from the customer evaluation at least.
But the key issue here is that whenever you have something that you can communicate with the okay from the majors, then obviously you will do that. We have a question from a viewer that sent in the question. Key factors to watch during the rights issue. For investors considering participating in the current rights issue, what do you believe they should pay the most attention to? The validation of the NLC technology or the progress of the collaboration with the FLC customers?
Good question. I would lean more to the collaboration, for example, the customer evaluation here, because whether the component is manufactured eventually on FLC or the easier manufacturable nematic liquid crystals, is really also depending on the industry. So although we are doing the validation now to prove that we can easily manufacture it on the near end, there is nobody saying that we cannot use FLC on the longer range here. So yeah.
Well, thank you for that, Clas. Should be very interesting to view this space. Not only the rights issue in itself, but all the news that will be coming out from the company. So, thank you so much.