Year-End Report 2021

STOCKHOLM, SWEDEN / ACCESSWIRE / February 24, 2022 / STRAX (STO:STRAX) (FRA:NOBC)

STRAX delivered record annual sales of 123.7 MEUR in 2021, during the same time gross margin was negatively impacted due to Covid-19

The Group's sales for the period January 1 - December 31, 2021, amounted to MEUR 124 (112) with a gross margin of 15.1 (26.3) percent.

The Group's result for the period January 1 - December 31, 2021, amounted to MEUR -3.9 (0.7) corresponding to EUR -0.03 (0.01) per share.

EBITDA for the period January 1 - December 31, 2021, amounted to MEUR 4.3 (8.5).

Equity as of December 31, 2021, amounted to MEUR 14.0 (18.2) corresponding to EUR 0.12 (0.15) per share.

Covid-19 continued to have significant impact on sales of own mobile accessories and personal audio brands leading to unfavorable brand and product mix. This development coupled with various global supply chain disruptions has caused a sharp drop in gross margin for the period.

A bid for all outstanding shares in ZAGG shares was approved February 18, 2021. The bid level was at the current share price so will not have an effect for the P&L but will contribute with approximately 2.5 MEUR in cash, with a potential upside of USD 0.25 per share if certain conditions are met corresponding to an additional USD 159.4 thousands.

STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced Urbanista Los Angeles, the world's first self-charging, wireless active noise cancelling headphones, powered by Powerfoyle™ solar cell material.

STRAX launched online only brand Dóttir, with new line of sports-focused true wireless headphones. The brand was developed with CrossFit champions Annie Thorisdottir and Katrin Davidsdottir. The first product, Dóttir Freedom On-Grid in-ear headphones has already been awarded the Red Dot Award
for product design.

STRAX launched online only brand, grell, with the first product being true wireless headphones. The brand was developed with world-renowned sound engineer and headphone designer Axel Grell, who has crafted headphones to produce world-class sound for over three decades, most notably at Sennheiser. The first product from grell won CES Innovation awards 2022.

As a result of the compressed margin during the second half of 2021, the group did not meet one of the financial covenants in the loan agreement with PCP as of December 31, 2021. After the end of the period a waiver for the breach was granted. The fact the waiver was granted after the end of the period has the effect under IFRS that the related interest-bearing debt is reported as current in the balance sheet as of December 31, 2021.