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Measured progress in a turbulent hydrogen market

During the quarter Cell Impact continued its work on ongoing customer projects and made progress in line with its updated strategy, with an increased focus on expanding the business and future high-volume production.

The hydrogen market is currently dominated by uncertainty, which is affecting many parts of the value chain. This was particularly evident in Europe, while a relatively stable development was noted in other markets such as Asia. This general trend was underpinned by uncertainty regarding policy directions, changing support systems and adjusted regulatory frameworks, which led to the postponement of several investment decisions and customer projects. The market is also feeling the effects of geopolitical turbulence, driven by international trade concerns and, of course, by the conflicts and wars that have befallen the world. In addition, Cell Impact is facing delays due to customer‑related factors, such as technical obstacles and reprioritizations.

We proceeded with our work on ongoing customer projects during the first quarter and continued to gradually develop our processes. The geopolitical turbulence facing the world, with the US-Iran conflict leading to surging oil prices, underscores the need for a less vulnerable energy supply. Against this backdrop, renewable energy – which facilitates the production of green hydrogen through electrolysis – has an important role to play.

Net sales for the quarter increased to SEK 2.2 million (1.9) compared with the same quarter in 2025. Our operating loss amounted to SEK –16.6 million (–20.8). It is also worth mentioning that we continued to display high levels of cost awareness, and that the adaptation of our operations continued to have a clear impact on our costs.

Our financial capacity

Early in the quarter, we signed a new agreement with a European electrolyzer manufacturer to replace a previous agreement, which we announced in the fourth-quarter interim report. The value of the original agreement amounted to SEK 18 million and was built on ongoing payments for flow plates delivered. However, no flow plates were delivered in 2025 due to project delays. Under the new agreement, the customer will pay for activities already completed during the first half of 2026. This means that our cash balance will improve by SEK 6 million through the delivery of tools, fixtures and other work performed. We also have a shared ambition to transition to deliveries of flow plates at a scale corresponding to the original agreement.

Of even greater significance for our cash balance was the rights issue that we conducted during the quarter. Altogether, the rights issue was 60 percent subscribed, generating proceeds of approximately SEK 23 million before issue costs. The rights issue was carried out to facilitate the continued development of our operations and the transition to high-volume production and to enable a strategic expansion of our business. This expansion will involve making our patented technology and machine capabilities available for new products and in industries beyond the hydrogen sector. Potential applications include cutting machines, cooling plates, heat exchangers and embossing.

Despite the improvement in our financial capacity, the company will be dependent on increasing its cash generation from operating activities in the quarters ahead.

Ongoing customer projects and collaborations

During the quarter, we received a minor order for flow plates valued at SEK 0.6 million. This was a follow-up order from an existing customer, which confirms our standing as an expert in our field and the quality that we can offer. At the same time, the order – which is a high‑volume series order from an existing customer in the US with an existing material handling product – is also an indication that the market is possibly moving in the right direction. We were able to handle the order with the raw materials we had available, which meant that the agreement had a direct cash impact.

Our previously announced agreement with an Asian vehicle manufacturer has now been finalized. Payment and the final delivery of tools were completed in April, after the end of the quarter. By delivering tools to the customer, we enabled them to solve a challenge that they had been grappling with for some time.

Our cooperation with Krause Automation – formerly known as thyssenkrupp Automation Engineering – is continuing. There is still nothing concrete to communicate, other than the fact that we have been carrying out joint customer engagement initiatives in Asia.

Additionally, we received a higher number of machinery inquiries from numerous customers in several parts of the world prior to 2026. The machines are already fully developed and available, which means that sales can be made at a high margin, with limited capital requirements and an immediate cash effect.

During the quarter, we also continued our efforts to broaden our business by approaching potential customers regarding Cell Impact Cutting. The machine concept is ready for production once we have received our first order, and we are currently processing various inquiries.

Developments in line with our updated plan

Overall, the past quarter enabled Cell Impact to continue working on projects and making progress in line with its plan and strategy, despite a lack of major deals. We are carrying out customer activities in Europe, North America and Asia, with Asia currently being the geographic market with the strongest demand. Furthermore, we are pursuing projects in a range of application areas and delivering flow plates for segments such as material handling, the aerospace industry, heavy transport and the automotive industry.

We are moving forward slowly, in a measured manner. Our projects are progressing, and we are exceeding expectations. We remain focused on our major upcoming orders.

Daniel Vallin, CEO
Karlskoga, May 2026