February has temporary effects on the number of active subscriptions due to the product recall last year. A proportion of annual subscriptions that were not renewed this year has created fluctuations in the graph, but does not affect the underlying subscription model.

The attached Stripe graphs show the development of "churn" and "lifetime value" over the entire history. Churn has stabilized at a low level while customer value has increased and become more predictable. This provides room for increased growth as liquidity is strengthened.

APS and MRR are at historically high levels, as you can read from the figures in the investor portal.

The subscription model appears more robust now than before.

Sales development and international growth

International sales increased from 6% in the period August–December 2025 to 43% in January–February 2026. February alone generated almost as many international orders as the previous five months combined. The increase is spread across multiple markets and not driven by a single country.

This represents a structural change in the order mix, where in the short term we will work to gain a foothold in several European markets with the strategy we have now implemented.

Operational efficiency improvement

In recent months, we have significantly reduced fixed costs through prioritization and efficiency improvements. This has strengthened the balance sheet and reduced operational risk.

The transaction with APPN

Through APPN, we will take over existing technology and ongoing revenue streams, in addition to NOK 4.75 million in capital. A separate review of synergies and integration plan will follow when the transaction is formally completed. We expect this to happen as early as next week.

Lildog Black edition

All of today's investors who participated in the issue this summer will receive their specially produced Lildog 2 Black edition, including a 10-year subscription, this March.

We look forward to so many of you (over 300 shareholders) testing Lildog and giving us direct feedback on the product.

AI, hardware and Lildog's position

AI makes software development faster and cheaper. As development and copying costs fall, the value of companies that own physical distribution, sensor data, and integrated hardware with a subscription model increases.

On the front page of Dagens Næringsliv yesterday it was stated that “DNB’s success fund has got rid of the software stocks” . The article refers to the fact that several software companies have fallen significantly, and that companies such as Microsoft and Salesforce are down 20 and 30 percent despite strong results.

Stanford HAI writes that the investment focus is shifting towards companies that own physical distribution, sensor data, and an integrated hardware with a subscription model.

Deloitte mentions “physical AI” as a clear investment direction. This is AI that can operate in the physical world via hardware, sensors, and mobility.

This development strengthens our relative position as an integrated hardware, sensor and subscription player in a market where pure software models face increasing pressure.

Termination

Recent months have reduced operational risk and strengthened the balance sheet.

With a stable subscription model, growing international share and the injection of capital through APPN, the company is better equipped for further scaling than before.

We will continue to build structurally correctly, with a focus on controlled growth and profitability.