Terranet AB – Year end report 2023 - Seite 2

Product development is progressing according to plan, and we are following our previously communicated product development plan; in 2024, we will demonstrate our prototype in a laboratory environment in the first quarter, and then in the second quarter we will demonstrate our prototype on vehicles in a test environment outdoors. The initial testing of a prototype showed promising results, offering good opportunities for product development before presentation to external parties. Our goal is to create formal partnerships with Tier 1 suppliers and automakers in 2024. We are moving closer and closer to a finished product that will be attractive on the market.

Continuous dialogues with Tier 1 suppliers and vehicle manufacturers have confirmed that there continues to be a great deal of interest in what we do across a number of different sectors, both in the area of driver assistance and autonomous vehicles. We continue to increase our commercial capability and have just elected Mats Fägerhag to the board. As a operational advisor, Mats brings many years of experience in the automotive industry and vast knowledge in the area of product development and commercialization. We are also engaged in an ongoing recruitment effort within business development.

At this year's CES, one of the world’s premier trade shows for the automotive industry and tech sector, advanced driver assistance systems (ADAS) continued to be one of the hottest topics. Car manufacturers and suppliers acknowledge that existing anti-collision solutions are in need of improvement.

Despite the fact that many car models are currently equipped with advanced driver assistance systems, a high number of accidents still occur. And the continued high rate of accidents is especially concerning in cities, where accidents occur between cars and vulnerable road users. Solving this problem will require faster and more precise sensor technology. “Terranet offers technology that will help solve these problems, save lives and enable new mobility innovations for a safer and more efficient traffic environment”. In light of the above, the collaboration that we initiated in the autumn of last year with AstaZero's test track and the interest from EuroNCAP are quite relevant.