NEXT Biometrics Group (NEXT) Investor Update summary

Strategic direction and innovation

• Launching a new product segment targeting the smartphone industry, leveraging patented Active Thermal Technology for full-screen fingerprint authentication.

• The innovation aims to enhance security, convenience, and usability, allowing authentication anywhere on the screen and supporting multi-finger security.

• The existing business lines in government ID, access, and laptops will continue alongside this new initiative.

• Partnerships with leading display manufacturers are key to development and integration, with Innolux already involved.

Market opportunity and competitive landscape

• The immediate addressable market is 300 million high-end smartphones annually, representing 25% of the total market, with two-thirds being iOS devices.

• The broader smartphone market is 1.2 billion units per year, with 80% already using biometrics.

• Fierce competition exists among top display, smartphone, and fingerprint technology companies.

• The technology is positioned as a game changer, with expectations that it will become standard across the industry within 6-8 years.

Business model and financial considerations

• The business model is under development, with options including hardware sales and IP licensing; potential licensing fees could range from $0.30 to $10 per device.

• High-end display costs are currently $100–$130, with the new technology expected to add 10–20% to this cost.

• The company expects display makers to bear most of the integration costs, minimizing internal resource requirements.

• Revenue from this segment is expected to surpass existing product lines significantly over the next five years.