Interim report for the period 1 January 2024 to 31 March 2024

First quarter in summary

• Net revenue amounted to SEK 21.4 (22.1) million, a decrease of 3% compared with the corresponding quarter the year before.
• EBITDA amounted to SEK -1.8 (-5.3) million.
• Cash and cash equivalents amounted to SEK 7.0 (15.0) million.
• Equity amounted to SEK 137.0 (193.8) million.

Significant events during the first quarter

• ZignSec has launched an AI-enabled solution to analyze and monitor merchant websites, a key part of regulatory onboarding for acquiring banks and PSPs.

• The MyConnect platform, our partnership with Schufa, has launched several banks and a large credit comparison platform in production in the first quarter of 2024.

Significant events after the end of the first quarter

• ZignSec has signed a customer agreement with a leading Nordic-Baltic banking group for the use of solutions that streamline the onboarding process for new merchants and monitoring of existing clients, with a focus on the Baltics.

• The Company's Board of Directors has initiated a process to evaluate ZignSec's potential strategic options to maximize shareholder value.

• The Board has resolved to carry out a rights issue of approximately SEK 33.5 million before issue costs, which has been secured to approximately 75 percent, through subscription commitments and underwriting commitments.

A comment from the CEO Glenn Mac Donald: 

During the first quarter ZignSec focused on revenue recovery and growth despite a decrease in net revenue of 3 % compared to the corresponding quarter last year. Operational efficiency improved, with EBITDA showing notable progress.

We continue to focus on technology development and product innovations, such as the launch of our AI-enabled web crawling and fraud analytics tools. Expansion into emerging markets and successful partnerships demonstrate the company's commitment to global reach.

For more information, please contact:

Glenn Mac Donald, CEO

Tel: + 31 647192622

glenn.macdonald@zignsec.com

ABOUT ZIGNSEC GROUP

ZignSec is a technology group in the fast-growing RegTech industry. The company provides SaaS solutions for customer due diligence and ID verification with global reach. The solutions are used by companies to optimise their processes for onboarding both corporate customers and consumers while ensuring compliance with local and global regulatory requirements for Know Your Customer (KYC) and Anti-Money Laundering (AML).

Nasdaq First North (ZIGN)

Certified Adviser: Eminova Fondkommission AB, Phone: +46 8 684 211 00