CEO's message

Financing secured for operations

While we succeeded in our various customer projects during the second quarter, our sales were weak. The Group’s net sales amounted to SEK 2.1 million (23.8), down 91 percent on the comparative quarter in 2024.

During the quarter, we carried out a rights issue, which we announced on May 20, 2025. The aim of the rights issue was to meet our need for increased financing, which had been communicated in multiple interim reports. The issue was up to 60 percent guaranteed in advanced and its final outcome entailed a capital injection of SEK 39.2 million before issue costs and repayment of the bridge loan, bringing the final outcome to 63 percent. Since we are waiting for customer orders of larger volumes, this capital injection was necessary to lead and complete our new and ongoing customer projects, bringing them to final product.

The path to profitability and large volumes

Investors and other stakeholders who have read our previous communications will be familiar with our efforts to secure larger volumes: the process often begins with discussions with the potential customer about their needs and preferences in terms of flow plate design and production. In cases where our patented forming technology is suitable, the discussion then turns to simulations that allow us to evaluate and adjust the customer’s design suggestions. This makes it possible to create a design for optimal performance at an early stage. After this come several subprojects in which we work with the customer to validate the flow plates using small test tools, real production tools and fixtures, and small-scale flow plate manufacturing. The goal of these activities is to evaluate and develop the flow plate and process to ensure they meet the high standards set by fuel cell and electrolyzer manufacturers. These subprojects are essential for progressing together with our customers – and each successful project is another step towards larger volumes. Reaching high volumes is a process that takes many, many years.

Enabling capital injections

We operate in a challenging market. There are well-known geopolitical reasons behind this, but the market itself – in terms of customers, suppliers and technology – is also still under development. This means that when we work together with our customers on various subprojects, we are developing the technology as well as the market. This is challenging, but at the same time it is a strength. Every successful project creates a stronger bond between us and our customers.

“With a combination of technological maturity, increased capacity, established customer relationships and tried-and-tested high-volume solutions, we have a strong position in the industry.”

Thanks to the injection of resources provided by the rights issue, we have access to financing until such time as our revenue from customers is sufficient to cover our costs. Overall, this means that it is possible to take the next step in developing Cell Impact through continued industrial scale-up and commercialization. With a combination of technological maturity, increased capacity, established customer relationships and tried-and-tested high-volume solutions, we have a strong position in the industry and have become a prioritized future partner for global industrial players.

I am pleased, but also humbled, to say that we have continuously been able to strengthen our position by broadening our customer base and reducing our dependence on individual customers. Our projects are progressing well and we are approaching the major orders whose delays we have already discussed, which is creating the conditions for increased growth.

A strong position

We have customers who operate in Asia, Europe and the US – just over a handful of companies in total with up to five or six years of project activity with us. During the quarter, we announced that one of these companies, a leading industrial player in Asia, had signed an agreement for a follow-up order for the delivery of flow plates and test tools that they will use to develop customized flow plates. The transaction followed on from previous successful joint development projects.

We also signed a number of smaller agreements during the quarter, for example regarding evaluation activities related to test plates and test tools.

Overall, these successful customer projects and the completed share issue confirm the appeal of our offering and our unique forming technology. I’m proud and thankful to have accomplish these things together with all of my skilled and motivated colleagues at Cell Impact.

Daniel Vallin, CEO
Karlskoga, August 2025