Transparency – our new investor portal

As we launch our new investor portal, we are presenting our numbers transparently – directly from our systems, without any filters. Data is automatically retrieved and compiled in Looker Studio (owned by Google) every night at 04:00.

The purpose is to simplify communication with our shareholders and offer a simple, visual way to follow the company's development. The solution does not require additional resources and provides a continuously updated portal that shows progress - and which can be used to inform all shareholders without separate emails.

When we participated in Euronext's "IPO Ready" program, we were reminded that share prices do not always reflect the actual development of a company. The market can react to expectations and individual events, while the internal work on product, growth and partnerships can show a different development. The share price can rise in demanding periods – and fall in periods where the work internally is progressing.

We are therefore prepared that transparency about revenue, growth and operations (including expenses) may raise questions. Campaigns, new agreements and roll-out to partners may take time before the effect is shown in graphs. For overall context, we will supplement the current figures with regular updates in "Investorposten", so that it is clear what lies behind the numbers and how we are working further.

We appreciate feedback – both in the posts published on the investor post and about what data you would like to see in the portal. As we are now approaching 1,300 shareholders, it is appropriate to collect questions and input related to shares and shareholder updates through the contact form on this page. This provides structured follow-up and ensures that the information is shared equally with everyone.

Strong growth after marketing launch

In August we restarted marketing after a quiet period, and the results have been good. In Norway we have achieved a CAC (Cost per Acquisition) of well under NOK 500 for sales via our own website. This indicates that both product and marketing are well optimized in the domestic market.

Sales increased in August and continued to rise in September, as the graphs below show.

Number of active subscriptions

The number of active subscriptions (APS) started at 2,400 in August. The number does not include customers who purchased Lildog 1 with a 10-year subscription, or customers who have temporarily paused their subscription. The level is partly due to a year of limited sales following the recall of Lildog 2 in 2024.

With a low churn rate, the number remained stable until the marketing campaign started in early August. After that, the number has increased steadily, as shown in the graphs below.

Monthly Recurring Revenue (MRR)

MRR (monthly recurring revenue) comes from subscriptions associated with the units sold. Revenue from Lildog Hotel and other additional products is not included in the figures here.

Subscription revenue comes somewhat after unit sales – the products must first be shipped and put into use before subscriptions begin to run.

Comment on the development

The figures above mainly show sales from our own website. After we have shipped items to warehouses at Amazon, Bol and several retailers, we expect further increases in both APS and MRR in the fourth quarter. The effect will come as customers receive the products and subscriptions are activated.

Goal

Our goal is to reach monthly sales of 5,000 units, divided into:

• 2,500 units via digital channels (own website, Amazon and other online retailers)
• 2,500 units through distributors and retailers

This goal was set in connection with the previous capital raising, where we budgeted for a CAC (Cost per Acquisition) of NOK 2,500. Since we raised a slightly lower amount than planned, the focus so far has been on sales in Norway – a market where the website is well optimized, and where we achieve a lower CAC.

Our first tests in Europe showed that CAC was high if we did not adapt the websites locally. We have therefore chosen to copy the Norwegian model first to Sweden and Denmark, before rolling it out more broadly in Europe. The launches in these markets ended at the beginning of October, where we are still working on optimization.

In addition, we have shipped products to Bol.com (the largest e-commerce platform in the Netherlands) as well as to Amazon warehouses in Germany and France. If we succeed with this strategy, we are on track to reach our goal of 5,000 units sold per month.

With an average revenue of over NOK 1,700 per unit (including subscription), 5,000 units sold per month equates to an annual revenue of over NOK 100 million (with current revenue, subscription and churn).

At the same time, the focus has gradually shifted towards the number of active paying subscriptions (APS). This is set as a requirement before the company can be listed on Euronext Growth. With the current development, we look forward to reaching 10,000 active subscriptions by mid-December 2025 – a milestone that marks the transition to stable, recurring revenue and profitable operations.

IPO

We are continuing to work towards a listing on Euronext Growth and have specified the timeline for listing. As we are close to profitability, we consider that pricing could be higher if the listing occurs after we are in the black. Profitability is not an absolute requirement or something that in itself must delay the timing, but it can strengthen the case and be set as a condition.

To qualify for listing on Euronext Growth, several criteria must be met:

Economy

The company is experiencing good growth and increasing revenue, both through existing markets and new ventures in Europe. The focus going forward is to maintain momentum while ensuring a balanced use of resources.

We have not yet reached profitability, and marketing budgets therefore place some natural limits on the pace – especially in new markets.

Our focus is to concentrate our efforts where we see the best effect now. Growth requires investment, and we are continuously working to optimize between cost-effective operations and further expansion.

The investor portal is live!

The first version of the Investor Portal has been launched, but is not yet fully optimized. The portal displays data for "Two months ago" and "Previous month" instead of month names, in order to be able to publish early without additional code optimization.

We are working on integrating data from accounting programs, so that operations and consumption are also visible in the portal. This is planned, but our financial and legal partners will help assess what should and can be shared openly, so that we maintain both transparency and business considerations.

The goal is to give shareholders the opportunity to follow both revenues and costs – and be part of the company's journey to profitability, in real time.