Core Insights - Anoto Group AB reported a decrease in net sales and gross margin for both the third quarter and the first nine months of 2025 compared to the same periods in 2024 [5][6] - The company has entered into a secured convertible loan agreement to support its financing needs and global expansion efforts [2][5] Financial Performance - For Q3 2025, net sales were MSEK 7, up from MSEK 5 in Q3 2024 - Gross margin for Q3 2025 decreased to 40% from 52% in Q3 2024 - Operating loss for Q3 2025 was MSEK -13, slightly improved from MSEK -15 in Q3 2024 - Earnings per share before and after dilution improved to SEK -0.03 from SEK -0.07 in Q3 2024 [5] - For the period of January to September 2025, net sales amounted to MSEK 17, down from MSEK 24 in the same period of 2024 - Gross margin for this period decreased to 54% from 57% - Operating loss increased to MSEK -47 from MSEK -45 in the previous year - Earnings per share before and after dilution remained at SEK -0.07, improved from SEK -0.12 [6] Financing Activities - In October 2025, Anoto Group AB secured a convertible loan of approximately USD 2.4 million with an 8% annual interest rate, maturing on 1 October 2027, convertible at SEK 0.06 per share [2] - The loan is secured by a SEK 20 million floating charge over Anoto AB and a share pledge over Anoto AB's shares in KAIT Knowledge AI Holdings Pte. Ltd. - Previous convertible loans totaling USD 1.4 million were set off against this new financing [2]

Core Insights - Anoto Group AB reported a decline in net sales for Q2 2025, amounting to MSEK 4 compared to MSEK 6 in Q2 2024, indicating a decrease of 33.33% year-over-year [2] - The gross margin improved significantly to 53% in Q2 2025 from 38% in Q2 2024, reflecting better cost management or pricing strategies [2] - The operating loss increased to MSEK -21 in Q2 2025 from MSEK -16 in Q2 2024, suggesting ongoing challenges in achieving profitability [2] - Earnings per share before and after dilution improved to SEK -0.02 from SEK -0.04, indicating a slight reduction in losses [2] Financial Performance - For the period of January to June 2025, net sales were MSEK 10, down from MSEK 19 in the same period of 2024, a decline of 47.37% [2] - The gross margin for the first half of 2025 increased to 63% from 58% in the previous year, showing an upward trend in profitability metrics [2] - The operating loss for the first half of 2025 increased to MSEK -34 from MSEK -30, indicating a worsening financial situation despite improved margins [2] - Earnings per share remained stable at SEK -0.04 for both periods, suggesting consistent performance in terms of loss per share [2] Corporate Developments - Anoto secured a USD 750,000 loan with conversion rights to fund the launch of its "inq" pen and software, with a repayment period from October 2025 to October 2026 [2] - A further USD 250,000 was raised under the same terms on June 20, 2025, indicating ongoing efforts to secure funding for product launches [2] - The AGM held on June 27, 2025, approved the 2024 financial statements and resolved not to distribute a dividend, reflecting a focus on reinvestment [2] - The company finalized a legal dispute with Green Mango Corp., resulting in a payment obligation of 924 KSEK plus interest, which may impact future cash flows [2] Strategic Initiatives - Anoto entered into a promissory note agreement for a loan of USD 400,000 to support working capital while pursuing additional financing for global expansion [2] - The company plans to convert this note into a Convertible Loan upon securing an additional USD 600,000 by September 14, 2025, indicating a strategic approach to financing [2] - The AGM approved updated executive remuneration guidelines and a new long-term incentive program (LTIP 2025), suggesting a focus on aligning management incentives with company performance [2]