Earnings call transcript: Audientes AS sees stock dip after Q2 2025 results

Audientes AS, a Danish technology company specializing in hearing solutions, reported its second-quarter earnings for 2025. According to InvestingPro data, the company’s trailing twelve-month revenue stands at 0.35 million USD, with an EBITDA of -1.43 million USD. The results showed modest revenues and an EBITDA of -3.1 million Danish kroner for the first half of the year. The company also announced the conversion of all legacy debt to equity, resulting in a negative equity of approximately -1.2 million Danish kroner at the quarter’s end. Following the earnings announcement, Audientes’ stock price fell by 10.53%, reflecting investor concerns over the company’s current financial health.

Key Takeaways

• Audientes reported modest revenue for Q2 2025, with an EBITDA of -3.1 million Danish kroner.
• The company converted all legacy debt to equity, reporting negative equity of -1.2 million Danish kroner.
• Stock price dropped by 10.53% following the earnings release.
• Audientes is focusing on expanding its product line and entering new markets.
• The company aims to reach cash flow breakeven by the end of 2026.

Company Performance

Audientes AS continues to position itself as a challenger in the hearing solutions market. Despite reporting modest revenues for the second quarter of 2025, the company is optimistic about a revenue bounce-back in the third quarter. The conversion of legacy debt to equity marks a strategic move to strengthen its balance sheet, although it resulted in negative equity at the quarter’s end. The company is actively pursuing partnerships across multiple markets to enhance its commercial readiness and expand its global footprint.

Financial Highlights

• Revenue: Modest for Q2 2025, with expectations for improvement in Q3.
• EBITDA: -3.1 million Danish kroner for the first half of the year.
• Equity: Negative equity of -1.2 million Danish kroner at the end of Q2.
• Shares Outstanding: 678 million.

Market Reaction

Following the release of its Q2 2025 earnings, Audientes AS experienced a 10.53% decline in its stock price. InvestingPro data reveals a concerning trend, with the stock down 82.95% year-to-date and 78.26% over the past six months. The company’s current ratio of 0.5 and gross profit margin of -96.61% suggest significant operational challenges. This drop reflects investor concerns over the company’s financial performance and its current negative equity position. The stock’s performance is notably below its 52-week high of 0.036 Danish kroner, indicating a challenging market environment for the company.

Outlook & Guidance

Looking ahead, Audientes AS is focused on achieving cash flow breakeven by the end of 2026. The company is exploring various funding options, including corporate bond issuance, to support its growth initiatives. Additionally, Audientes is expanding its product offerings, including developing new hearing aid form factors and app updates for various platforms. The company is also preparing for medical device approvals in China, which could open new market opportunities.

Executive Commentary

CEO Steen Thusen emphasized the company’s position as a challenger in the hearing solutions market, stating, "We are really a challenger in many ways." He also highlighted the company’s revenue potential, noting, "We think we are heading towards sort of an inflection point in terms of our revenue generation." These comments underscore Audientes’ strategic focus on innovation and market expansion.

Risks and Challenges

• Negative equity position poses a financial risk.
• The competitive landscape in the hearing solutions market is intense.
• Regulatory challenges in new markets, such as China, could delay product launches.
• The company’s reliance on partnerships for market expansion may introduce uncertainties.
• Macroeconomic factors could impact consumer spending on hearing solutions.

Audientes AS remains committed to its growth strategy, focusing on innovation and global expansion. However, the company’s current financial challenges and market conditions will require careful navigation to achieve its long-term objectives.

Full transcript - Audientes AS (AUDNTS) Q2 2025:

Mikael, Moderator/Host: Welcome to today’s event where we have the pleasure to present, audiences. The occasion for today is, of course, your results you released, last week, your q two half year, financial report. To help us through today’s presentation, we are joined by Stan Thusen, CEO in the company. We do this in English because you also have a a audience, besides the the Scandinavian one, on on on the corporate bond level, issue issuance. So, that’s why we are doing it on on English today.

But do feel free to ask questions in the box down below both in Danish and English. I will try and translate them to the best of my ability. But I think I will hand the word over to you, Nastin.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yeah. Thank you very much, Mikael, and welcome to this presentation. Yes. We are now presenting our second quarter and full half year result of 2025. And today, I’ve sort of put together the usual flow, but we will be looking at both the progress in our different activities and also what are we looking at financially so far this year and what is our expectations for the remainder of the year.

And, of course, as you mentioned, we also have this ongoing capitalization effort that I will also cover absolutely. So for those who has not kind of necessarily met us before on on on this forum, we are this Danish technology company that is pioneering solutions within the self fitting hearing solution space. So we we focus on hearing aids and what we call advanced hearables, which essentially are consumer electronic products that has got markets that are, you can say, outside the sort of medical device area as well. We are listed at the Spotlight stock market in basically in Denmark, but this is part of the the Swedish Spotlight group. Our business today really consists of the classic business that we have been working on for a number of years now, is product sales.

So this is where we basically do everything from start to finish literally. We design, develop, manufacture, and bring to market products in this space. And our target users are essentially those who are looking for new solutions that are more accessible, affordable, and also allows them to sort of bypass the classic hearing aid channel so we can actually do this self fitting, which is increasingly popular in many markets, especially kind of the over the counter segments. We’ve also started last year looking into using our software asset in terms of licensing this to companies who are interested in manufacturing products, bring them to market that are also within this space. So the software licensing business is something we see as part of our future orientation, and we are making steps towards that all the time, basically.

And and currently, we’re working on on a few projects in this regard. Now just to really sort of reacquaint ourselves with our portfolio, of course, we have the hearing aid VIN and the kind of hearable companion, which are products that we have been bringing to market the last couple of years. We have been in the market now for a good while with those. And they are in the neckband design. And we are now introducing also the companion products in in new markets, basically, in in China in the sort of products.

Basically, it’s it’s a localized version of companion for the Chinese market, is a trademark name there. Xigingyu also happens to be the the part of the name of our joint venture in China just to so it’s aide to the confusion. But, basically, our our future, you can say, direction also includes classic hearing aid designs such as what we are depicting on this slide and also other form factors. So in terms of our our market, what are we actually focusing on? And we are basically focusing on a market that is in the sort of affordable hearing products category, but where we focus really on bringing out high quality products to people that has this smartness built in, essentially self fitting, and other technologies that are really hearing aid class.

So, essentially, we are we are picking from the top shelf building into our products, but we’re placing products on on the lower shelf where they’re easier to afford. And there’s a number of pockets that we are also, you can say, competing within or looking towards. So we are not trying to compete with a very high end, expensive, top quality products. We, of course, can say from Danish and other hearing aid manufacturers, but we are really trying to sort of address the the niches in the market where we think we can play a good role. In the over the counter market, this is kind of what I show here as number three.

There is a number of interesting form factors. Many of them are building on existing classic hearing aid designs, but they’re also mainly in the sort of true wireless kind of the earbud style and and and other form factors. And and, essentially, this is a bit of the kind of Wild West. There’s a lot of things going on there and things are moving fast. And this is a market we find interesting, but we also see the problems that for most people, if you only have mild to moderate hearing loss, it’s not really, you can say, a hearing aid that will make things great for you.

It is when you actually have really difficulties hearing that you need a great solution. And and so this is kind of why we are we’re looking at this market, but we don’t think this is exactly the way we should focus our efforts. So we are essentially trying to focus on addressing from kind of moderately severe to profound hearing loss. That is our playground, and this is markets where self fitting is, you can say, part of it, but where you often also need to work with hearing experts to get the right fit. Part of it that is due to legislation and part of that is due to kind of how channels work.

But, anyway, that’s how we sort of see the world, and we are interested in in increasing our play, of course, in those markets where people really has a need and can’t find affordable and good solutions. Last time we presented the q one results, I showed this kind of illustration of how we are looking towards 02/2025, but also into 02/1926. And I just want to repeat that, not covered in in major detail, but just to say that executing for us means really going to market, selling products we already have developed and and on on stock ideally. And then we’re looking towards the future for what is it that is going to also tap in next year to help us increase our revenue in new markets. And and this is kind of these new form factors, whether it’s receiver and canal type of product or through wireless earbuds and so on.

So we are really looking towards that. And part of solving that, you can say, possible for us is, of course, that we can gain access to partnerships where we can either work on a license basis or we can actually secure funding to complete the development ourselves. So we are we’re working on quite a few things in that regard and and really the critical thing for us is is funding to move forward fast. I think you can say what we are expecting is that this year is still going to be a year of kind of negative EBITDA as a result. But next year, we really should be in a position to drive revenue and increase it on month by month basis.

So we should be basically at cash flow breakeven towards the end of the year. That is really our aim, and that’s why we are we are doing a lot of things, I think, in the market to sort of stimulate and drive demand, and we are really partnering with some interesting companies to make that happen. So and in addition to that, I mentioned we also have this OEM and licensing expansion. And I will cover these things on the coming slides, of course. So what are the highlights from the sort of second quarter and really overall first half?

So we have to unfortunately say that revenues that we could recognize in q two remained modest. But we did manage to actually bring in a significant order during the quarter, but that will be delivered in q three. So we can only recognize the revenue when we actually are shipping products and delivering on the order. And, you know, we’re looking really towards this as one of these sort of stimulating factors in our in our play for for the remainder of the year. Because at the same time, you know, this order that I’m mentioning, we I will cover that in a few slides, but, essentially, it is from a new partnership that we we started last year in 02/2024, and now things are starting to materialize on that.

But we’re also seeing really interesting progress in other markets. For example, the the Chinese market where we are moving forward with our kind of the Chinese medical device approval process for the VIN product. And, the CD new product is in the market, basically. So now we are starting to actually see real things happening in the coming half year and so forth on that. And then, of course, we know that when you get the approval from the authorities, you can actually then start to introduce and market this Venn hearing aid as as a medical device.

So for us, this would be really important thing. In Japan and like in in Europe, we have introduced the companion products, and we are essentially now online with with with ecommerce sales. So we are going to push that a lot more and and add more countries in Europe and so on. But in in in India and and in The Middle East, we also have the sort of win products playing in, and we are now with some new partners trying to make some new moves in in these markets. So for us, there has been a lot of things happening already in, you can say, at the beginning of of this year and into this sort of third quarter.

And now we really see us being in a really good position for a stronger second half. This is almost how our business normally performs anyway. I wanna mention just a few things around our our our kind of Indian based partner, Symbladeath Holdings. Symbladeath Holdings is someone we partnered with last year who has a quite, you can say, broad portfolio of different activities in technology, but also in in trading and kind of consumer products and and so forth. And it’s a really interesting dynamic enterprise.

And we are essentially now working with them to introduce their VEN product and also companion products in some of the markets in in terms they have access to in India, but also outside India in, for example, in in The Middle East via their activities in Dubai and and hopefully other other markets as well going forward. For us, this is one of these partnerships that we think can become really important. We have, of course, partnered with companies before in India and and but this is someone that has a really unique profile. So we hope that this will actually be a a really a really, really good and rewarding partnership. The progress in other markets, as I mentioned, we have the China, the the two sort of activities there.

The partner we signed early in the year, Audi Vista, has been doing a lot of groundworks in actually preparing for getting the right approvals to put the product into some of these public kind of funded health channels there is in in various markets. And, also, they have been also undertaking basically the the sort of ecommerce development and and testing some things out there. So I think we have quite a lot of expectations to what Audi Vista can can bring next, you can say, the next quarters. At the same time, of course, we also have many other markets that are lying out there. And we have received approval for for companion in in South Africa now.

It’s a type approval, meaning that we can actually introduce it now in the market as a consumer appliance, and it’s the same kind of approvals we have in in Japan, in in China, and also in in Europe, of course. So we are now really trying now to put the products out in these channels. And I think reality is many of these channels need a good, you can say, profile to address end users. So you need to get in touch with the right people, but you also need to support them and ideally provide counseling. And that is part of the sort of go to market model that I think is is still very important when it’s hearing products we’re dealing with.

And that, in our experience, now takes a good while to actually get established and and start working. But we are we are now active in in in even more markets than we were earlier in the year. So I already covered these these things here in the sort of highlights, but, essentially, we expect now some of the sales we had hoped for and and planned for in q two to actually materialize now in q three. So, of course, this has a bearing on the overall result for the for the sort of second quarter and first half as a whole. And the beta result for for for q two was almost the same as for for q one.

So so overall for the first half, it’s a it’s a net loss on the EBITDA level at minus 3,100,000.0 Danish kroner. This, of course, is something where we we really understand driving the revenue and and getting the profits in is so important to to turn this around. And this is kind of really our our main focus. And we, of course, need to also continue to manufacture products and so forth. So we are maintaining our relationship with our factory.

And, of course, we are seeking to to broaden that also to to other markets and and and and different product types. So So there is a lot you can say still going on in that regard. Well, unfortunately, we ended up with sort of having this sort of negative equity of around minus 1,200,000.0 at the end of the quarter. We did do a lot of activities earlier in the quarter, which I will come to the next slide. I’ll just skip to this one here, the capitalization progress.

So basically, what actually happened during the first half was that we eliminated all our legacy debt, which means that all the convertible loans were converted to equity. And we did do some, you can say, equity raises during q two. It was actually partly done in in q one, but it sort of materialized in q two’s accounts. So this really wasn’t sufficient to actually do everything we wanted to do. So we had to sort of push out some activities awaiting additional funding.

So instead, we focused on the things where we could have a significant impact. And, essentially, that is on on on some of the deals, like, with with with Symbolgeev and the and the Audi Vista partnership. So we have really been investing in creating kind of commercial readiness awaiting we can actually invest more in in go to market. Now that we’re on this slide, anyway, we we we can also cover the fact that one of our big aims for first half was to carry out this corporate bond in this with our partner in Bulgaria on the local BEA market. But for various kind of procedural and and documentation related matters, this really took a long time to get to a point where it was clear what was to be included and and how.

And and and, unfortunately, we got into the summer period where it only made sense to sort of revisit all of this at the other end when people were actually back from vacation. That’s how Europe works, and then we had to sort of adhere to that. So but our aim is still to really push forward with this now. And and and, you know, now we’re in September, and and so this is now when we’re really kind of rolling up the sleeves again and and really focusing on getting this moving forward. I think this is also it’s a quite good timing from our point of view with the different activities we have coming in and and and progress made.

So this is this is actually what I think we we somehow had to accept the the the sort of situation. Let me just now step forward step back to this slide here where we sort of look at the financial results. So just there. And I think we already covered these things. From a revenue point of view, it wasn’t really what we had hoped for.

But again, I think we can make kind of a bounce back during the third quarter in that regard. And I think I covered all the other things. We have done various issues of shares. Of course, our number of shares outstanding has gone up quite significantly during the last year and that has been both due to the sort of significant amount of debt being converted and and and new equity kind of raise, but also, of course, that the share price has been going in the in the kind of in in in the opposite direction of what we had hoped for. So the share price has been really low.

So the number of shares today are quite significant, around 600 and and 78,000,000 shares outstanding. Okay. So let me just focus on on on second half now because, of course, there’s a lot happening now. A lot has happened already. But our key focus is really managing and leveraging these partnerships we have.

And and and all of them have got a lot of potential, but a lot of it has to be reaped in order to show up in our in our top line. So for us, it’s really about securing this initial revenue from our new partnerships. So with Sympathief, we’ve been working really for a year to to to develop this sort of mutual understanding and also what is it that we can do together and how can Sympathief use what we have in their activities. So now we are ready to to start working towards that, and AudiVista has made some really interesting progress. So I think from those two partnerships, we expect quite a lot in this second half.

At the same time, we have actually commercial readiness now in several markets and we really just need to sort of do what it takes there to to sell as much as we can. At the same time, we have these different activities going on that is around new product development. We have also revved the app for Android earlier in in this year. So there’s some new releases of Android that has got a a very different kind of security model and so on. So we have had to to really do some significant enhancements to the app.

And, also, for the iPhone kind of world, there’s also a new app update coming. So a lot of this, of course, happens all the time, but these are things we need to continue doing and improve the experience because we’re also going to make some specific versions for the Chinese markets. There are some significant platforms there that are not compatible directly with Android, for example, but they are kind of Android like. So these are the Huawei and and Xiaomi platforms, and we are essentially working on also making our our apps available for those platforms. So all of this, of course, require that we have access to more liquidity than we have had for a good while.

So this is why looking at supplementary funding and the bond and so on is really important, of course, always supported by revenue inflows. That is really our focus. And I already covered this slide. So what is remaining is essentially just to summarize, you know, why I think we are at a really interesting point from an in kinda a share point of view. And it is because we have this global fruit footprint established now.

We have market ready products. We are kind of early stage in terms of revenue, but we have been investing a lot of time and effort in actually getting ready to start sales. So that’s where we are now. So we think that we are heading towards sort of an inflection point in terms of our revenue generation. We have orders now and we have orders coming in.

So this really should mean a lot of positive news from us going forward. Our licensing approach, this is something I think is really one of these undiscovered hidden gems in our business, but we think this has got a lot of potential. So we are we are really trying to pitch this proven technology platform towards actors who are interested in in both the sort of self fitting market, but also different hearing hearing care products for the more professional channels. And with various partners, I hope we can really create these next generation products. We have some activities going on already, both in the sort of receiver and canal classic hearing aid form factor that sits behind the ear, and then also the true wireless, which is a sort of earbud style, and also, as I mentioned, with our multi platform app.

But we need to secure more footing to really accelerate this. This is a key part of our plan. So I think with all of these things we’re going, we are still in this really interesting position to to position us strategically in this industry that really is full of growth potential around the world. And we are really kind of unusual actor in this space. We are we are really a challenger in many ways.

Final slide with sort of content on it is just to say that we have updated our financial calendar now. We have a a lookout towards the 2026. And then the next time I’ll be presenting here should be maybe before as well, but at least on on November 21 with our q three reporting. And with those words, over to you, Mikael. Thank you very much.

Mikael, Moderator/Host: Thank you, Steen. Let’s jump into some question. The days here, how far are you from landing the the corporate bond? Maybe you I think you alluded to the timeline. So is everything ready?

Are you starting marketing? I I’m pretty confident that at least you will be able to market here in q three. Are you comfortable with that timeline now?

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): I’m comfortable with the timeline, but I think history has also told me that these things seems to take time. And there’s these different unknown factors that we are not fully in control of, but but with the documentation now in in in a form that I think is is the consensus that this is what it should look like, then I think we now have to complete it. We have to update it with the sort of recent reporting, and then we have to really start bringing it out to the market. And that we will start definitely on as soon as possible. This is our our top priority in in that space.

Mikael, Moderator/Host: Perfect. And then there’s a question to the order. You you mentioned the 800,000. Are these unconditional, meaning that this is a sale, you know, or or is there some condition meaning that you might have to take the products back? So so just to to get a feel on this order versus maybe earlier order you you made in India.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Sure. So so the reason for why we are we are not including this order in our in our accounts for for second quarter is that we want to have it delivered, paid for before we recognize it. And that’s essentially how the model is. So so the order value is, yes, it’s it’s it’s the sort of 800,000, but we are we are recognizing it when it actually hits our books.

Mikael, Moderator/Host: K.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): So so and and, you know, this is kinda, again, based on learnings and and everything. So so we are we are we are much more, you can say, hard nosed in that regard. But this this is what we’re working towards. And and this all essentially will be split between the markets in in India and also in markets outside India. So part of this this is is, for example, going into the the Dubai market and and then on to different countries.

So this is this is really interesting from our point of view. And it’s a mix of of of them and companion products as well, I I should say.

Mikael, Moderator/Host: Yeah. That was also a question there. I’ll get to that and maybe a little bit more in details. With limited cash, have you been able to able to move forward the r and d and potential launch in 2026 of BT, the behind the year model.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yes. We have done that to some extent, but it’s more you can say on on the concepting software side. I think for for really pushing into the actual hardware, running the the the the prototypes and all of that stuff, production ramp up, this is kind of where we really are waiting for the for the cash. We have some some prototypes designed we’re working with also on on this sort of true wireless and bringing up the software platform on that is is sort of part of what we’re doing as well. So we we have some some really interesting dialogues with with with various stakeholders who has these assets and and and and all of that, of course, require funding to really get to this sort of next level.

But but we are we are sort of working with that alongside, you can say, many things are taking our our time in a in a small team. For example, updating the app has been a major focus for this sort of first half and so has getting all of the paperwork prepared for the the medical device approval of in China. You know, this is sort of where we prepare documents in English, they are being translated to Chinese by our our partner and their kind of advisers. So this is something that takes just a lot of time. So we we’re really focusing on on completing one task at a time, but but as also, of course, moving all the things forward as we can.

Mikael, Moderator/Host: And now we go up to the helicopter. You have alluded to, you have moved from a product business to a licensing business. And here’s a question. Have you considered selling the whole company and technology platform to to some of your partners, you know, just to and I know you probably will not answer it, but it’s a question out there, Steen.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yeah. I would say we are we are we’ve announced a long time ago that we are open for all sorts of, you can say, partnerships and and transactions in that regard. And and, you know, we are a listed company, and and anyone can can come and make a bid for us like someone did on on Dora who was a a Swedish mobile phone and sort of senior citizens manufacturer of different products. So that that happens, and and then you are you you find a new life somewhere else, but anyone is welcome to to contact us in that regard, of course.

Mikael, Moderator/Host: Sure. Is there a plan b if the cover corporate bond issues doesn’t yield any results?

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Of course, there is. Then I think that there is these other other channels that we can pursue, which is is actually where where it’s it’s not a bond as such, but it these are, you can say, other types of loans and and and we would like to steer away from from equity, you know, issuing, I think, our share price is not at a level where that is is super interesting at the moment. So so we have got other activities, you can say that we want to to then devote our attention to if if that should not work out.

Mikael, Moderator/Host: And then there’s a question. Do you still expect to breakeven in ’26? And I I think you alluded to it. I I also guess that, you need funding to kind of move the movement that will make you break even. But so are you still optimistic that you can keep the plans even, maybe funding has been a little bit delayed, and I guess also the commercialization effort that should push you

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yeah.

Mikael, Moderator/Host: High enough revenue to break even.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): I I think yes. And and I think it’s it’s a it’s a matter of, you can say, what is the go to market model? How is it us who should do all the investment in in the marketing, or is it our partners who should do the reinvestment in the marketing? And and those factors are quite significant when you look at at at how you we are a small organization. So if we can make some some significant deals through partners, then you can say we have a model that is is quite sort of cost efficient.

If we have to sort of push a lot on on on ecommerce ourselves, then it’s it’s it’s takes quite a while before you start earning, you can say, the the actual marketing investments. So, yes, I think we this is our plan, and we are very lean as an organization. So we basically have, you know, a lot of things that we can do. We just need kind of success in doing it.

Mikael, Moderator/Host: And then you also mentioned that, I guess, a couple of years ago, you expected there’s a market out of the box. Now you are talking that maybe there is you need some kind of a sales process where at least a little not an an audio log, but but something else. How do you transfer that? Because I guess the European strategy is much selling on on Amazon and so on. Have you have you made any thoughts about how you transfer that?

Do you actually maybe need some advice unpacking packing it out of a box and using it, but maybe there should be some advice. Can you do that digitally also?

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yeah. There there are some there are some various solutions in the market that are really trying to to handle this onboarding process really well. There are some app vendors who are who have developed, you can say, a special business out of that. You know? It sort of comp complements our our basic app.

There are some online things you can do, but I think my my biggest learnings from from having been in this now for a good years few years is that people with hearing loss, they really need some counseling in the process of buying a product, whether this is online or whether whether this is in the in the in the channels. And our initial foray into the the professional channels was actually quite positive because we really felt this is the way to do it, but we also learned that that that the professional channels like to sell the very expensive products they earn a lot on. So products that were sort of more, you can say, less costly, they had less margin on it. So they rather prefer to sell really expensive products and have a higher margin.

Mikael, Moderator/Host: So But but you you you you you have tools digitally that can onboard them with the the customer.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): But I think still our our belief in that opticians and pharmacists and and specialty outlets that that are okay with selling a product for, like, $300, you know, and think that’s a that’s a good price. They are really good places to to offer this counseling to people. So that’s what we are we are still pursuing and trying to find out how to do that and with whom. But this has been a significant learning, of course, for us that that it is sort of something that requires just like, you know, prescription glasses. You do need some professional over there to help you.

But also, would just say in many markets, because we are talking about hearing health, many markets require that a professional is involved in actually fitting a device for people with significant hearing loss. That’s a requirement, basically. So you you in many markets, over the counter is still not an option.

Mikael, Moderator/Host: Perfect. Then there’s a there’s a question here. The 214 k in operating auto operating income you have, can can you explain a little bit about how how they are being booked?

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Absolutely. I mean, this this is part of our some some grant funding we got a couple of years ago from the Danish market development fund. And and the way we we handle that grant funding is that it has funded part of our r and d costs. So every month, we have to sort of take something you know, we have to recognize some of that grant revenue, and at the same time, we are sort of, you can say, depreciating our our our sort of investment in in in r and d asset. So this is this is purely accounting technical at this point in time.

The money has been received several years ago and and also, you can say, actually used invested in in the software platform we’re using today.

Mikael, Moderator/Host: So It is a bit accounting practice.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): And then also And it is also it’s also written about in our in our quarterly report, so it’s explained how how that works.

Mikael, Moderator/Host: Yeah. Perfect. And then there there was a little bit of the composition of this order between the companion and and then was that fifty fifty? Or I don’t know whether you indicated that.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): It is probably roughly that that part, but it it remains to be fully determined.

Mikael, Moderator/Host: And and for more countries also, if I understood you correctly. Yeah. And then there’s a the last question, is there anything news about the hearing protection? You you started to maybe see if there was a way in hearing protection, both military, but I guess also hunters and and and noisy work environments, and and maybe you could create some business in that segment. Have you gone any further here?

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Yeah. Well, we have we have gotten further in terms of have spoken with a couple of of of industry access, and then we’re also looking at the sort of form factor design for this, which is part of our is a true wireless concept we’re looking at. It’ll be, we think, easier to realize that in the in the earbud style. But yeah. So we we are we’re on it, but nothing nothing you can say to be talking about that much in in that regard so far.

Mikael, Moderator/Host: Perfect. I’m just checking, Steen, but I think we have gone through all the question. Thank you, Steen, for taking us through your results and answering the questions, and thank you for the audience listening in.

Steen Thusen, CEO, Danish Technology Company (Hearing Solutions): Thank you.

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