WISeKey Announces 9-Month 2021 Preliminary Results; Reports Revenue of $15.4 Million, a 34% Increase from 9-Month 2020 Period

Strong focus on the development and commercialization of WISe.ART an NFT platform for the collectible and luxury market; through the WISe.Art, WISeKey is selling high value NFTs, incorporating the needs of this exclusive and high-volume marketplace

WISeKey's strong cash reserves of over $33 million, at end of September 2021, support investment in WISe.ART, new Nano SEAL chips, Artificial Intelligence as well as new products, IP and fast-growing IoT/Cybersecurity markets

ZUG, Switzerland -- October 13, 2021: Ad-Hoc announcements pursuant to SIX reporting requirements -- WISeKey International Holding Ltd (NASDAQ: WKEY / SIX: WIHN) ("WISeKey" or the "Company"), a leading Swiss cybersecurity, AI and IoT company announced today its preliminary unaudited financial results for the 9-month period ended September 30, 2021. All 2021 figures in this release are unaudited and estimated due to the preliminary nature of the announcement.

Carlos Moreira, WISeKey's Founder and CEO, noted, "During this quarter we had a specific focus on the development and commercialization of the WISe.ART, an NFT platform for the collectible and luxury market under the brand name WISe.ART ( https://www.globenewswire.com/Tracker?data=dBhw9otSmkpsja5sQ6E__sDHUh47rF-K-_M8iURMQPDjQVHoeZfaOBOTg2DmBgyEq9lwCGJ-Y3hlj7BHYMlWTwFWEJfurGJWIX9CwBZQMi_WTofFZiflBMtQRg3BVmnpNog5EVedMsWTNbr0Bc5guFZMXVCCT_tlbanVbpVA5EYJCXj7VtLKZyL_joS4SUVxNrwmeXTZBAUFChnHmVzHdjJZNtdy_h0fE7pR142YAOjnoSn93OQ7iyo_JtBlMhl54QE4wA36dio9VNr2HTqfXA== https://www.wise.art). The global market for non-fungible tokens (NFTs) surged to new highs in the first nine months of the year https://www.globenewswire.com/Tracker?data=QRuncKjpQngACp17krLQwt-jvHiQZaWDuvP1-tcxmWvD0SqqqI2kg21ZruYu9hgZ_1ib1i6aO0KTl6G18yVhZ-HVR8Etd4JAf9pPKx8LWrrlwjdUaS8m8uxfIyvVb-KilFWAVP1T2RKNI-QvczjUFy2xSlC_XbZiT_UyPV3VzlWNAe4PWpuwVrubgqLd6v0f_TnT6vY7eyMTOHg8D5sN9g== with $2.5 billion in sales so far this year, up from just $13.7 million in the first half of 2020 and it is expected to surge again especially on the high-end NFT market, the market segment where the WISe.ART platform operates. WISeKey position on this NFT marketplace market is unique due the strong cybersecurity and authentication features that it offers."

WISeKey's WISe.ART NFT platform conducted a series of market tests during the first 9 months of 2021 -- auctioning high https://www.globenewswire.com/Tracker?data=JRDuVovRjjfhXO0joz9dK8Ak6EN-h-0bXUfhHVPtOw1QeututfNl7YnIqSZWGm_wXGGuarOSr3gVx8AK147jMGaExHrkmqorR9ZtqDxg2yTKorOMIPEmMurUu7WvVKtsgNJwDTccXqejMqo11KO8DErrOlSICqwcJI6GxR_zFQ4= value https://www.globenewswire.com/Tracker?data=qDUMSBKyQs3t2Fd80Xz1UeGzdkV1kH-btbL3OAsP8DYilnzB2GAbjO2neN-YzRuIntqWSkaMR33V2w_3ru-1V7mAKne60TVeQT6ib1LhiES-SlLwV11qD03RuQeuEn7TKL4UznXH3PEXgX66DCHE0y-sDcr_jE4B-Uk7rFpe-Sk= watches https://www.globenewswire.com/Tracker?data=cu1BIczaLKvybHL2PEgie1rW5pdMG9WeQvb7lORemm7h99ksgCf0ON5cQlDAjFV8fbeAJHd8PzViqyu6itwla_-iEITm-eqXhUv7x-tyIzMckNhWTj0XK9k7LOHeQDywYO6gF9RaxEd8MgyNajtbuSGT08ETBZ0x5dIHw4eDICo= NFTs https://www.globenewswire.com/Tracker?data=WZepKomsgLG_h09nMF2vkf24r586vbRqKXp_I_AIdb2IsYHfCmfnaNco5XSfluaqLqrOgEDbXCS-C5eOhyj3f_cCqw4M5m41m1I0LGWRDVyADSywSHwadKw8_fnbpQkZwlWgs089B8RD31g6RZhkWcxGsB9icu_EF4730FUu-4M= and testing the appetite of the art and collectible community -- to incorporate the needs of this exclusive and high-volume marketplace. We will continue testing the platform during the rest of 2021 with high level NFTs from different geographies, before the fully operational WISe.ART platform is launched. WISeKey provides the a secured platform for the trading/auctioning of the NFT and receives a fee ranging from 2.5% to 10% for all NFTs traded through its platform, but it doesn't own and is not involved in the commercialization of and ultimately successful bids for the NFTs offered through its platform.

Aiming to fulfill the needs of buyers and sellers of high-value goods, the WISe.ART platform evolves the original collection of WISe.Art and is a fully fledged marketplace with its own digital currency TrusteCoin to be released at the end of 2021, has the ability to include curators and multipliers, white-labeling options and a special NFT design. The upgraded NFT design of the WISe.ART platform ensures that besides an authenticated and signed version of the actual digital asset, an irreversible link to a physical object is set up, in addition to proof of ownership, provenance and a set of contracts describing future use and monetization streams. NFTs and platform are secured by WISeKey's various security technologies enabling the authentication of physical objects as well as digital assets in a safe end-to-end process. The WISe.ART platform allows trading of NFTs into WISeKey's own TrusteCoin cryptocurrency, enabling market participants to stay anonymous -- if they so choose -- while ensuring the necessary KYC processes to avoid unwanted activity on the marketplace.

WISeKey also reinforced its decentralization strategy with its blockchain-based solutions aiming to override the need for a central authority by distributing information previously held in a centralized repository across a network of participating nodes. While Blockchain is not owned by one individual or organization, anyone with an internet connection (and access, in the case of private blockchains) can make use of it, help maintain and verify it. When a transaction is made on a blockchain, it is added to a group of transactions, known as "blocks." Each block of transactions is added to the database in a chronological, immutable chain. Each block is stamped with a unique cryptographic code, which ensures that records are not counterfeited or changed. The blockchain approach lacks legal validity in most jurisdictions, which only recognize the digital signatures as equally valid that manuscript signatures when generated using traditional PKI technology.

As a clear example of this decentralization process, WISeKey has developed a unique NFT platform following a multichain strategy through a partnership with Polygon, CasperLabs and Ocean Protocol.

WISeKey is now set to take the next steps, starting with a purpose-built token launch planned for end of 2021 in cooperation with Scaleswap, the Layer 2 Launchpad, known for its fair principles and smart ScaleSCORE loyalty system, endorsed by Polygon. WISeKey has selected Polygon for the commercial launch of its Trusted NFTs solution. WISeKey's high-value NFTs, requires someone like Polygon, whose ultra-low transaction fees and sustainable Proof-of-Stake (PoS) consensus mechanism are essential in meeting the demands of WISeKey's high-volume marketplace.

WISe.Art will be Scaleswap's flagship IDO launch, will be setting the tone going forward, and will provide an anchor for future project launches on the platform. The selection is also an infrastructure decision that reflects a commitment to longevity, compatibility, ownership, and value at every level of the ecosystem. Scaleswap is taking an interesting and exciting approach to IDO launchpads, one that is based on shared goals of making blockchain and cryptocurrencies as accessible as possible and doing so in a scalable way using Layer 2 solutions.

Other Preliminary 9-Month Financial and Operational Highlights:


   -- Revenue of 15.4 million increased by 34% as compared to 9-month 2020 
      revenue of 11.5 million. 
 
   -- Strong cash position:  As of October 1, 2021, WISeKey's cash reserves 
      amount to $33.7 million. This improved financial position enables WISeKey 
      to make investments in growth initiatives and support its development 
      into Artificial Intelligence of Things ("AIoT"). 
 
   -- Made significant investments in R&D and new microchips design in order to 
      maintain its leading-edge technology position and the competitive 
      advantage of product offerings. 
 
   -- Put strong requirements in place to reduce general corporate spending and 
      effectively manage the needs for working capital to maintain a positive 
      free cash flow position. 
 
   -- Completed the acquisition of a controlling interest 
      in arago GmbH ("arago"), investing a further $5.7 million cash in the 
      first eight months of 2021, bringing total investment to $11.2 million of 
      cash into the arago operations. This investment led to a combination of 
      WISeKey and arago businesses and the consolidation of revenues starting 
      February 2021. arago provides Artificial Intelligence to enterprise 
      customers globally through Knowledge Automation. Knowledge Automation and 
      Data platform HIRO(TM), developed by arago, takes a unique approach to 
      process automation by using AI to autonomously and independently 
      determine how to complete and then automate end-to-end tasks based on 
      real time contextual data. Fully auditable and only using steps defined 
      and approved by the customer, Knowledge Automation delivers significantly 
      higher automation rates at a much lower operational cost. This 
      acquisition was strategic for WISeKey to establish a foothold into the 
      AIoT market. 
 
   -- Took urgent and decisive actions to reduce the operational costs 
      of arago and streamlined processes with significant reductions in G&A. 
 
   -- Made significant investments in new talent and expanded its sales 
      force including the appointment of a new Chief Revenue Officer to take 
      advantage of higher demand for strong security, authentication, brand 
      protection and anti-counterfeiting services for segments such as 
      connected devices, connected cars, luxury products, pharmaceuticals, and 
      banking/financial sector. 
 
   -- Developed NanoSealRT, an NFC Forum Type 5 semiconductor chip that works 
      with both Android and IOS 12 (and above) devices: an essential patent was 
      granted in March 2021 to this product by the E.U. and the Chinese Patent 

(MORE TO FOLLOW) Dow Jones Newswires

October 13, 2021 12:00 ET (16:00 GMT)