Audientes: Surpassing DKK 1 million in H1 revenue

Company announcement no. 18-2022

August 25, 2022

Today, Audientes A/S releases its financial results for Q2 and H1 2022. During the second quarter of 2022, Audientes secured satisfying revenue for its first quarter of sales, surpassing DKK 1 million in the first half of 2022. The second quarter also saw Audientes announce the addition of a new product to its portfolio with Companion by Audientes – a situational hearing solution to be launched in Q4 2022, with focus on the US and thereafter in additional prioritized markets globally.

Due to the current underperforming stock markets, we announced in July that our upcoming funding aim has been reduced and outlook for 2022 has been adjusted accordingly. If the upcoming critical funding round should not be completed as expected, the present plans for the development of the company will be adjusted accordingly to its financial capabilities.

Steen Thygesen, CEO Audientes A/S, comments:

“We are satisfied with the results in H1 2022 and have high expectations for H2 2022. We have developed a good flow in our Indian business across hearing health retail channels in the major urban areas. Since we began selling Ven™ by Audientes at the end of March, we have surpassed DKK 1 million in invoiced revenue and are steadily ramping up. We are also excited to introduce a new product to our portfolio with Companion by Audientes. This situational hearing solution will enable us to rapidly enter the US with a smart non-medical consumer electronics offering. The coming months will also see us being focused on the move to the Spotlight Stock Market as well as the important injection of new capital to support our current growth plans, which of course will be adjusted to the capital secured.”

Q2 and Half-year 2022 reporting performance highlights

Highlights Q2 and H1 2022

• Audientes introduced in Q1 its self-fitting hearing aid Ven to the market and began shipping Ven in the channels more broadly in Q2.
• At the end of Q2, our first full quarter of sales, we had surpassed DKK 1 million in revenue for the first half of 2022.
• Sales outlets were doubled in numbers in India during H1 to over 350 individual stores.
• Investments and expenditures are in line with expectations, with investments totaling DKK 3.6 million for H1 and DKK 1.9 million for Q2. Inventory built up in H1 with DKK 1.6 million for the expected autumn and winter sales to mitigate potential supply chain risks that may arise and amounted to DKK 3 million at the end of in H1.
• Nasdaq Copenhagen A/S approved in June Audientes A/S' application to change listing from Nasdaq First North Growth Market to Spotlight Stock Market (Company Announcement 15-2022), with last day of trading at First North on September 16th, 2022.
• Furthermore, the company has also in June been approved for listing on Spotlight Stock Market (“Spotlight”) (Company Announcement 13-2022), which will take place on September 19th, 2022
• The final rules for the new category of OTC (“Over-the-Counter”) hearing aids were published in August by the US FDA. These rules are close to the earlier published proposal, with ample opportunities for a variety of product form factors and personal fitting & customization functionalities, such as what Audientes is developing. With clarity established, Audientes can now continue the focus on gaining FDA clearance and approvals of our planned US products.

Outlook for 2022

• Due to the current underperforming stock markets, Audientes upcoming funding aim has been reduced and outlook for 2022 was adjusted in July (ref. Company Announcement 16-2022).
• The expectations are based on the upcoming critical funding round being completed as expected.
• Audientes expects revenue in 2022 to be in the range of DKK 9-12 million, mainly generated from its activities in India through wholesalers & chains, and from sales of its new product, Companion by Audientes.
• The expected EBITDA loss for the year was similarly reduced to a loss in the range of DKK (10)-(12) million as investment in certain marketing channels are eased.

Financial calendar

Link to Q2 and half-year 2022 Financial Report (in English):

https://www.audientes.com/investor-relations/

Financial report presentations: 25 August 2022

Financial report presentation: 25 August 2021 at 14:00 (2:00 pm - CET)

Audientes CEO Steen Thygesen is live on Infront Direkt, discussing the Q2 and Half-year 2022 financial results, latest news and followed by a Q&A session.

Link to Infront Direkt event:

https://youtu.be/EDKdCFi4xHc

Financial report presentation: 25 August 2021 at 15:00 (3:00 pm - CET)

Audientes CEO Steen Thygesen is live at HC Andersen Capital, presenting the Q2-H1 2022 Financial Report and latest news followed by a Q&A session.

Link to HC Andersen Capital event:

https://hcandersencapital643.clickmeeting.com/audientes-presentation-of-h1-2022/register

For further information, please contact:

Steen Thygesen, CEO, Audientes A/S

Phone: +45 53 17 26 10

Email: st@audientes.com

www.audientes.com

Certified Advisor

Kapital Partner A/S

Phone: +45 89 88 78 46

www.kapitalpartner.dk

About Audientes A/S

Audientes A/S is a Danish technology company specializing in smart, self-fitting and affordable hearing aids. Audientes’ unique hearing aid solution, Ven™ by Audientes, is available for purchase in the Indian market, online and in retail, and will be introduced to the US over-the-counter market and other markets in the coming years. Audientes’ mission is to help the approximately 500 million people globally suffering from disabling hearing loss who either cannot afford to buy one of the very expensive hearing aids on the market, or who do not currently have access to a solution to their hearing loss.

Audientes (ticker name: AUDNTS) is currently listed on Nasdaq First North Growth Market Denmark (“First North”), but in the process of changing listing venue to Spotlight Stock Market Denmark (“Spotlight”). The estimated last day of trading in Audientes’ financial instruments on First North is September 16, 2022, and the estimated first day of trading on the Danish segment of Spotlight is the following banking day, September 19, 2022.

Audientes is headquartered in Copenhagen, Denmark with a subsidiary in Hyderabad, India.

For additional information please refer to the company’s website, https://audientes.com.