Sound Dimension (SOUND) Status Update summary

Business model and technology

• Enables multiple mobile devices to synchronize and create a surround sound experience, enhancing social music and video streaming scenarios.

• Technology is implemented as a software library integrated into streaming apps, allowing for seamless user experience and improved sound quality.

• Patent portfolio is strong, with foundational patents filed over a decade ago and new patents pending to further protect innovations.

• The solution increases user engagement and retention for streaming services, providing a competitive edge and reducing customer acquisition costs.

• Demonstrated success with first customer, where 82% of new users joined via invitations, driving over 400% growth.

Market opportunity and customer traction

• Streaming services face high costs for user acquisition; the solution offers viral growth and cost savings.

• Engaged in discussions and test agreements with multiple companies, including both music and video streaming providers.

• The video streaming market is about ten times larger than music in monetary terms, presenting significant expansion potential.

• Currently in dialogue with approximately 15 companies, with several at advanced stages under NDA.

• Early customer data is used to attract larger clients and demonstrate the value proposition.

Financial and strategic update

• Ongoing rights issue is expected to be fully subscribed, with management and board participating via loan conversion.

• Guaranteed capital from the rights issue will secure operations and allow for continued customer acquisition and negotiations.

• Full subscription would provide greater flexibility in negotiations and the ability to secure more favorable contracts.

• Focus remains on rapid customer acquisition and building a positive cash flow.