2/19/2025

speaker
Gustav
Host

Hello everyone and welcome to Ternet's Q4 webcast. My name is Gustav and joining me today is Dan Wadenberg, Acting CEO of Ternet and Kjari Ekvall, CTO of Ternet. 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. And you can post questions down in the box below on the streaming website. But without further ado, let's go into the highlight video. All right, so 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? And could you share a brief background on him and what he will bring to the company?

speaker
Dan Wadenberg
CFO & Acting CEO

Very good stuff. 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 Daikonea, where he was industrial in bringing a good desktop idea to a product that is now implemented in cars. And this will prove very beneficial to Terranet going forward.

speaker
Gustav
Host

Exciting times. And just a bit of background here. Throughout 2024, you've developed BlinkVision 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 MobilityX Lab. So here's a question for you, Pierre. What has your experience been with testing BlinkVision in a different type of vehicle and environment?

speaker
Kjari Ekvall
CTO

Testing BlinkVision in a partners 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 LinkVision to align with their needs and ensures robust operation. The project through MobilityX Lab 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.

speaker
Gustav
Host

Amazing. And you've also outlined a clear product development plan for 2025. Can you briefly summarize your top priorities for the year?

speaker
Kjari Ekvall
CTO

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. And to follow our ambitious roadmap, we will also be expanding the team. So in 2025, we will see both increased development resources, the MVP itself, and partnership agreements that enable future commercialization.

speaker
Gustav
Host

Great. Thank you for that answer. And in December, you signed a collaboration agreement with a vehicle operator in the mining industry. So how can testing this solution outside of urban traffic benefit the company?

speaker
Kjari Ekvall
CTO

Yeah, correct. Yeah, the mining industry provides a valuable testing environment for us. It's a bit less complex than urban settings, making it easier to test the system and gather feedback. And testing environments like mining also helps evaluate blink vision and how it performs under conditions such as dust environments, low visibility, and rough terrain. challenges that are less pronounced in urban traffic. And the more we test, the better we can refine and adapt the technology for real-world use.

speaker
Gustav
Host

And then just a follow-up question here for you, Pierre, again. In what other areas do you see that BlinkVision has potential?

speaker
Kjari Ekvall
CTO

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.

speaker
Gustav
Host

Great. And 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?

speaker
Dan Wadenberg
CFO & Acting CEO

Sure. First of all, we're very happy with the commitment shown for T08. 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.

speaker
Gustav
Host

Exciting. And thank you for that answer, Dan. So just looking ahead to 2025, what do you see as the biggest opportunities and challenges for Taranet? And you can feel free to answer both of you.

speaker
Dan Wadenberg
CFO & Acting CEO

Sure. So on the opportunity side, we do see an increasing interest in BlinkVision. We're engaging in multiple discussions with potential customers from different industries, I'm very eager to start testing the upcoming MVP. The possibility to test the MVP in their 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. So, yeah.

speaker
Gustav
Host

Perfect. Thank you. And Pierre, do you have anything to add?

speaker
Kjari Ekvall
CTO

Yeah, I'd say on the challenge side, our main technical challenge is bringing BlinkVision from a control environment to the real world's complex conditions. We need to test in different settings and for various uses to make sure it works well in any situation. Another challenge will, of course, be supporting international evaluation of the BlinkVision 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.

speaker
Gustav
Host

Great. Thank you both for those answers. And just before we move on to the Q&A, what key message would you like to share with stakeholders and potential partners?

speaker
Kjari Ekvall
CTO

Yeah, I mean, Bleak Vision has been in development for years now, and now things are really accelerating. So together with our partners, we're now ready to take the technology into real-world integration. So if you want to be part of future road traffic safety, now is the time to engage.

speaker
Gustav
Host

Great. Exciting times ahead. So that concludes the interview section, and now we'll move on to the live Q&A. And as I said before, if anyone has any questions, just... put them in the ask box down below on the streaming site. But here's a general question for you. What role do partnerships play in your go-to market strategy?

speaker
Kjari Ekvall
CTO

Yeah, partnerships plays a very significant role. Supply partnerships are key in securing the right, often state-of-the-art technology, and customer partnerships provide both relevant product feedback as well as providing opportunities for accelerated commercialization.

speaker
Gustav
Host

Great, thank you for that. Another question here. What organizational changes will take place to support the 2025 plan?

speaker
Dan Wadenberg
CFO & Acting CEO

So yeah, we're mainly looking at strengthening the development organization. So starting January up until mid-year we're looking at eight new ten new heads in the development department and that's a job that is ongoing right now we've already secured a few of these spots perfect thank you Dan so here's another question how does BlinkVision integrate with existing ADAS systems

speaker
Kjari Ekvall
CTO

Yeah, you know, enabling integration with AD and ADAS systems has been one of our clearly set targets already from start. BlinkVision 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 compute platform we've chosen to be compatible with, the 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 um Yes, the answer is yes. There is interest from the defense sector. I'm not able to go to details at the moment, but there are some ongoing discussions on potential use cases within that area.

speaker
Gustav
Host

And here's a question similar to that one. Which markets do you see as the most promising for BlinkVision?

speaker
Dan Wadenberg
CFO & Acting CEO

Yeah, primarily we focus on VAD and VADAS markets. But as we've discussed during this session, there are other potential business cases as well.

speaker
Gustav
Host

That's a brief answer. Thank you for that, Don. Are there any NDAs that keeps Taranet telling the market the different partners that you have signed agreements with?

speaker
Dan Wadenberg
CFO & Acting CEO

agreement with yeah we have a few signed ndas that do prevent us from telling who 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 but asap of course yeah perfect let's see if there are any other questions that will come in here

speaker
Unknown
Producer

Let's see.

speaker
Gustav
Host

Just a clarification here on generally on the financing going forward, Dan, if you want to reiterate what you said before.

speaker
Dan Wadenberg
CFO & Acting CEO

Yeah, I'm 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.

speaker
Gustav
Host

Great. Let's see here. There's another question that popped up, I think.

speaker
Unknown
Producer

Let's see.

speaker
Gustav
Host

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. So let's just let you see. Yeah, that's all of them. So let's go over to you, Don, to close out the call.

speaker
Dan Wadenberg
CFO & Acting CEO

All right. So thank you, everybody, for listening in and posting questions. We're looking forward to engage more with you in future. Please drop us a mail or give us a call if you have additional questions. If not, please follow us on LinkedIn or website. So thank you very much. Thank you.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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