CEO's message

A year of progress – despite a challenging market

Although the global market remained weak during the year, 2025 marked a breakthrough in the areas that are most important to us. Cost control, project deliveries and deeper partner and customer relationships strengthened our position.

At first glance, 2025 looks bleak. Sales amounted to SEK 5.6 million. This was an exceptionally low level, down 85 percent on last year. The global market remains cautious and developments did not meet our expectations, leading to project delays and postponed orders.

Behind the numbers, however, is another – far more important – story. Despite low sales, we managed to reduce our burn rate to a very low level. We also managed to curb our costs while balancing our operations to ensure that we have the right expertise in place to focus on the activities that create value in our projects.

This was not simply the result of cost control. We also continued to deliver in our projects, which is essential. The deeper customer relationships we have built over the years, and the broader customer base that is now emerging, are the result of a natural alignment between our technology and our customers’ needs. They are also proof that our technology is not just appreciated, but considered unique.

We are the missing puzzle piece

The most telling evidence is that our customers are adjusting their strategies and design choices based on our technology and engineering expertise – something they would never do if they were not convinced of our ability and of the unique offering we provide in the market. We are the missing puzzle piece they have been looking for in their development work. No other player in the market offers what we do, and this is clear in how customers are moving from being their own producers, or from purchasing flow plates from other suppliers, to instead seeing us as a potential primary supplier.

Our ability to accomplish all this despite our disciplined cost control – and weak performance measures – instead makes 2025 a successful year. We have continued to lay the foundation for the company’s survival and strengthened our market position. Our unique technology enables outstanding production quality and advanced metal forming capability, and we excel when it comes to the cost of installing new production lines – our process costs half as much as conventional forming.

The deeper customer relationships we have built over the years, and the broader customer base that is now emerging, are the result of a natural alignment between our technology and our customers’ needs.

Partnerships and development

In the fourth quarter of 2025, we announced a strategic cooperation agreement with thyssenkrupp Automation Engineering, one of Europe’s leading industrial players in advanced automation equipment. The partnership will give us a stronger position as we transition from development to industrial-scale projects, demonstrating that Cell Impact Forming™ and High Precision Punching are ready to be integrated into high-volume advanced production flows. Together with thyssenkrupp, we also approached potential customers that had previously shown interest in our offering.

In 2025, we also refined and expanded our core operations by introducing Cell Impact Cutting, which is based on our patented forming technology. This will allow us to cost-effectively cut high-quality metal rods at a high frequency, for example, opening the door to completely new market segments.

At the end of the year, we announced that we were expanding our business to reduce our dependency on the hydrogen market, where developments have varied. There has already been a great deal of interest from the industrial segment, and our ambition is to approach more customer groups in order to reduce our exposure to a single industry. We expect this expansion of the customer base to lead to more stable revenue and more even cash flow. Our expertise and technology will be available for established industries that require rapid, energy-efficient and precise forming or cutting.

A stronger financial position

We started 2026 by completing the rights issue presented in December 2025. Approximately 60 percent of the issue was covered by guarantee commitments from the Board, management and external investors.

In February, we announced a renewed agreement with a European electrolyzer manufacturer. According to the original agreement, worth SEK 18 million, payment was to be made on an ongoing basis for delivered flow plates. However, due to delayed project deliveries, no such payments have been made. The new replacement agreement entails that the customer will pay Cell Impact for the work already completed, strengthening the company’s cash position by SEK 6 million.

These two pieces of good news, together with the capital injection from the rights issue, mean that we have a stronger financial position than we could have hoped for in December 2025. We are now continuing to focus on business that will generate increased sales and positive cash flow in 2026.

Daniel Vallin, CEO
Karlskoga, March 2026