Fingerprint Cards AB (publ) licenses its iris recognition technology to Smart Eye AB (publ) for up to SEK 50 million, entering a strategic partnership to enhance security and user experience in Automotive and Enterprise

Licensing Agreement - Fingerprint Cards AB has entered into a licensing agreement with Smart Eye for its iris recognition technology, with a total consideration of up to SEK 50 million [1] - The consideration includes an initial fixed license fee of SEK 23 million payable in Smart Eye shares, up to SEK 17 million in milestone payments, and a maximum of SEK 10 million in royalty payments based on Smart Eye's automotive industry sales [1] - The total consideration amounts to a minimum of SEK 35 million over 5 years [1] Share-Based Consideration - The subscription price for the initial fixed license fee shares will be determined by the volume-weighted average price of Smart Eye shares over a 10-day period around January 6, 2025 [2] - The shares are expected to be delivered to Fingerprint Cards on or around January 17, 2025, with no lock-up period [2] Cross-Licensing and Revenue Sharing - Smart Eye will grant Fingerprint Cards a license to sell its multi-modal solution outside the automotive industry [3] - Revenues from applications developed by Smart Eye outside the automotive industry will be shared between the two companies on a case-by-case basis [3] Industry Context - Smart Eye is the market leader in camera-based sensing for in-vehicle applications, with more design wins and OEM customers than any other supplier [4] - Starting in 2026, every new car in Europe must be equipped with a Driver Monitoring System (DMS), accelerating the adoption of biometric authentication in the automotive industry [4] - Biometric authentication, particularly camera-based methods, is emerging as a secure and intuitive solution in the automotive sector [4] Strategic Partnership - The partnership combines Fingerprint Cards' expertise in biometrics with Smart Eye's leadership in automotive in-cabin sensing [5] - Smart Eye will license back to Fingerprint Cards a multimodal asset including Facial Recognition and Eye Tracking, expanding Fingerprint Cards' biometric portfolio [5] - The collaboration aims to provide strong protection against deepfake attacks by leveraging the inherent security of biometrics [5] Market Demonstration - Smart Eye will demonstrate Fingerprint Cards' iris recognition technology during CES 2025 in Las Vegas [5] Company Background - Fingerprint Cards AB is a world-leading biometrics company with roots in Sweden, providing secure and convenient identification and authentication solutions [8] - The company's solutions are used in hundreds of millions of devices and applications, with billions of daily authentications [8]