CEO's message
From the Q1, 2025 report
Search for financing intensifies
We continued to pursue projects and activities with existing and potential customers during the quarter, while at the same time intensifying our efforts to raise additional financing to secure our operations.
The first quarter of the new financial year was weak in terms of sales, with net sales of SEK 1.9 million (5.8), down 67 percent year-on-year. As a result – as I already spoke about in the Annual Report – Cell Impact is actively pursuing sales initiatives to attract new orders, while also reviewing our cost base and securing our operations through new financing.
A unique offering thanks to technology
At the beginning of 2025, we continued to carry out marketoriented activities in order to develop our operations together with current and potential customers. While these activities have not yet resulted in concrete new agreements, these contacts with customers – including potential customers – reinforce our conviction that we have a unique offering that the market appreciates and that is ahead of the game in terms of operations as well as costs. We are actively pursuing some 70 different customer activities, all of which are progressing well.
Cell Impact Forming™ provides technology that is currently lacking in the industry but in high demand among customers, while our production facility in Karlskoga is prepared for high volumes of flow plate production for fuel cells and electrolyzers, with the capability to manufacture them in a variety of metals.
“The cost reductions we decided on and carried out in 2023 and 2024 were successful, making us much more cost-efficient.”
From a technical and operational perspective, Cell Impact is now in many ways in a stronger position than ever in the past. By strengthening our customers’ development efforts and the design of their flow plates, we also increase our own market potential, conduct successful projects and receive positive reviews in evaluations. Additionally, well-known brands are choosing us as a partner and budgeting for our tools and products. We are considered capable of manufacturing the next generation of flow plates for customers. These choices are based on the facts about our technology, our production capacity and our abilities. We can offer flow plates today at a price that corresponds to the expectations and requirements of 2030.
Need for increased financing
Our challenge lies in ensuring our resilience – our ability to manage our progress and capitalize on it to ensure continued operations through our cash flows and cash and cash equivalents.
The cost reductions we decided on and carried out in 2023 and 2024 were successful, significantly reducing our cost base and our operating expenses and making us much more cost-efficient. At present, the largest share of our costs consists of fix costs, which are difficult to cut further, mainly rent for premises and salary costs associated with our core operations.
In addition, a large portion of our capital is tied up in machinery and in the industrial infrastructure necessary for our ongoing operations to move from projects to large-scale production.
Cell Impact has a fantastic offering and a lean organization. Together with our dedicated employees, the Board and management have intensified their efforts to find solutions to sign agreements with various stakeholders — in Europe, Asia and the US — that will secure financing for our operations. We are working to gain access to additional capital to fund our current operations, which will lay the foundation for future volumes.
Daniel Vallin, CEO
Karlskoga, May 2025
