Hello everyone, and welcome to Terranet's Q4 Webcast. My name is Gustav, and joining me today is Dan Wahrenberg, Acting CEO of Terranet, and Pierre Ekwall, CTO of Terranet. We will start off by showing a highlight video, then we will move on to the interview section, which I will be leading, and then we'll move on to the live Q&A with questions from the audience. You can post questions down in the box below on the streaming website. Without further ado, let's go into the highlight video. All right, let's move on to the interview section, and we'll start off with a question to Dan. You're the company's CFO, and you've now taken on the role of Acting CEO. When is your new CEO, Lars Lindell, expected to start? Could you share a brief background on him and what he will bring to the company?
Sure, Gustav, and again, welcome everybody. We're happy to welcome Lars soon. He will join on March 10. Lars will bring a lot of extensive industrial as well as international experience to the company, especially his last 10 years at Diaconia, where he was instrumental in bringing a good desktop idea to a product that is now implemented in cars. This will prove very beneficial to Terranet going forward.
Exciting times. Just a bit of background here. Throughout 2024, you've developed Blinc Vision from the concept stage to a prototype, which has been tested both in a lab environment and in a moving vehicle outdoors. During the fourth quarter, the system was also tested in a partner's vehicle via Mobility Xlab. Here's a question for you, Pierre. What has your experience been with testing Blinc Vision in a different type of vehicle and environment?
Yeah, testing Blinc Vision in a partner's vehicle ensures it meets their specific requirements. Each vehicle and environment is unique, and the partner usually has integration and signaling requirements as well as performance requirements for the different scenarios they may want to evaluate. This all helps us to fine-tune Blinc Vision to align with their needs and ensures robust operation. The project through Mobility Xlab has started as planned and is still ongoing. This is iterative work with many feedback loops. They're bringing us closer and closer to the perfect product by each new test drive.
Amazing. You have also outlined a clear product development plan for 2025. Can you briefly summarize your top priorities for the year?
Yeah, our main goal is to finalize the MVP or minimum viable product. It's an initial version of the final product focusing on core functionalities. Being able to showcase the product and create partnerships will help improve the product and increase its maturity. This is a necessary step for further development of our technology. To follow our ambitious roadmap, we will also be expanding the team. In 2025, we will see both increased development resources, the MVP itself, and partnership agreements that enable future commercialization.
Great. Thank you for that answer. In December, you signed a collaboration agreement with a vehicle operator in the mining industry. How can testing this solution outside of urban traffic benefit the company?
Yeah, correct. Yeah, the mining industry provides a valuable testing environment for us. It has less, it's a bit less complex than urban settings, making it easier to test the system and gather feedback. Testing environments like mining also helps evaluate Blinc Vision and how it performs under conditions such as dust environments, low visibility, and rough terrain, challenges that are less pronounced in urban traffic. The more we test, the better we can refine and adapt the technology for real-world use.
Just a follow-up question here for you, Pierre, again. In what other areas do you see that Blinc Vision has potential?
Yeah, our technology can be applied in several areas, such as agriculture, defense, industry, and logistics. Pretty much anywhere where reliable object detection enhances safety, efficiency, and automation in challenging environments.
Great. Let's move on to some financial questions here. During the fourth quarter, 88% of the warrants were exercised, which was a very strong outcome. Dan, could you describe the financing situation going forward?
Sure. First of all, we're very happy with the commitment shown for TO8. Thank you for that. As we point out in the report that we released this morning, we will need additional financing during Q2. In the light of the progress that we've made so far within product development, business development, we believe it's very much doable to continue financing the company.
Exciting. Thank you for that answer, Dan. Just looking ahead to 2025, what do you see as the biggest opportunities and challenges for Terranet? You can feel free to answer, both of you.
Sure. On the opportunity side, we do see an increasing interest in Blinc Vision. We're engaging in multiple discussions with potential customers from different industries and very eager to start testing the upcoming MVP. The possibility to test the MVP in our own vehicle will prove very important for future development, both of customer relationships as well as our own development. On the challenges side, we're now looking for more talented people. It can sometimes present a challenge to find the right people, but we're confident that this work will be successful. Yeah.
Perfect. Thank you. Pierre, do you have anything to add?
Yeah, I'd say on the challenges side, our main technical challenge is bringing Blinc Vision from a control environment to the real world's complex conditions. We need to test in different settings and for various users to make sure it works well in any situation. Another challenge will, of course, be supporting international evaluation of the Blinc Vision MVP, a necessary step, but that, of course, comes with some challenges of their own in terms of physical distance to our partners and that that distance does increase when we go international.
Great. Thank you both for those answers. Just before we move on to the Q&A, what key message would you like to share with stakeholders and potential partners?
Yeah, I mean, Blinc Vision has been in development for years now, and now things are really accelerating. Together with our partners, we're now ready to take the technology into real-world integration. If you want to be part of future road traffic safety, now is the time to engage.
Great. Exciting times ahead. That concludes the interview section. Now we'll move on to the live Q&A. As I said before, if anyone has any questions, just put them in the ask box down below on the streaming side. Here's a general question for you. What role do partnerships play in your go-to-market strategy?
Yeah, partnerships play a very significant role. Supply partnerships are key in securing the right, often state-of-the-art technology. Customer partnerships provide both relevant product feedback as well as providing opportunities for accelerated commercialization.
Great. Thank you for that. Another question here. What organizational changes will take place to support the 2025 plan?
Yeah, we're mainly looking at strengthening the development organization. Starting January up until mid-year, we're looking at eight new, ten new heads in the development department. That's a job that is ongoing right now. We've already secured a few of these spots.
Perfect. Thank you, Dan. Here is another question. How does Blinc Vision integrate with existing ADAS systems?
Yeah, you know, enabling integration with AD and ADAS systems has been one of our clearly set targets already from start. Blinc Vision is designed for sensor fusion, allowing it to work together with existing ADAS solutions for improved detection and decision-making. Another important step to facilitate this can be seen in the computer platform we've chosen to be compatible with NVIDIA Orin, giving us the ability to work smoothly with other systems without the need for an additional computing hardware, which also reduces the cost of the overall system.
Perfect. Thank you, Pierre. Another question here from the audience. In the area of defense, have any companies showed interest in Terranet?
Yeah. Yes, the answer is yes. There is interest from the defense sector. I'm not able to go into details at the moment, but there are ongoing discussions on potential use cases within that area.
Here's a question similar to that one. Which markets do you see as the most promising for Blinc Vision?
Yeah, primarily we focus on AD and ADAS markets. As we've discussed during this session, there are other potential business cases as well.
That's a brief answer. Thank you for that, Dan. Are there any NDAs that keep Terranet telling the market the different partners that you have signed agreements with or agreement with?
Yeah, we have a few signed NDAs that do prevent us from telling who we're working with at the moment. It is very interesting, and we hope to get back to the market within the course of this year. ASAP, of course.
Yeah. Perfect. Let's see if there are any other questions that will come in here. Let's see. Just a clarification here on generally on the financing going forward, Dan, if you want to reiterate what you said before.
Yeah. I am afraid I cannot rephrase it a lot. As I expressed, we will need additional financing, and we will need it during the second quarter this year. The work is obviously ongoing, and the board and the management are confident that this work will succeed.
Great. Let's see here. There's another question that popped up, I think. Let's see. No, those were all the questions we've gone so far, unless any other question pops up. I think we might conclude the live Q&A section. Actually, I think that's all of it. Let's just see. Yeah, that's all of them. Let's go over to you, Dan, to close out the call.
All right. Thank you, everybody, for listening in and posting questions. We're looking forward to engage more with you in the future. Please drop us an email or give us a call if you have additional questions. If not, please follow us on LinkedIn or our website. Thank you very much.
Thank you.