CEO's message

From the Q2 – 2023 report

Expanding in the electrolyzer market

As we’ve already mentioned, 2023 was a weak year, but we managed to secure funding for the company’s ongoing development before year-end, concluded the cost-reduction program we launched in July 2023 and initiated another one. After the end of the year, we received our first order for flow plates within the area of electrolysis.

As it looks, Cell Impact’s sales will gradually increase in contrast with the low sales level we experienced during the most recent quarter. Our full focus now is on continuing to develop our customer projects as well as Phase II, our productivity and profitability program.

Turnover for 2023 amounted to SEK 47.3 million (76.8), a decrease of 38 percent. The loss was SEK –119.5 million (–103.5). The low figure was due to decreased turnover and the impairment needs identified in the final phase of the second ongoing rationalization and cost-reduction program.

New customer, new segment

After the end of the financial year, we received an order that is expected to generate revenues of SEK 18 million through the second half of 2026. The new European customer is a company with unique electrolysis technology, making this deal our first within the electrolyzer segment specifically related to flow plates.
Cell Impact Forming™ is a cost-effective and scalable process that enables high-volume, high-quality forming of flow plates.

The deal is of great significance to Cell Impact both in terms of scope and strategic direction, as it is a result of marketing efforts we have been making since 2022. The production of hydrogen through electrolysis is growing quickly and around the world, large sums are being invested to develop and produce electrolyzers. In previous reports, we have shared information about deliveries of prototypes and ongoing customer projects. Our goal is to convert additional projects into larger deals in 2024 and beyond. We have great confidence in the growing market for electrolyzers, where technology is a prerequisite for producing sustainable green hydrogen.

Continuing to develop Cell Impact’s offering

We continue to see interest in Cell Impact’s products and technology from existing customers and new prospects. Throughout the year, this was evident in activities that are prerequisites for handling future large orders for flow plates for fuel cells and electrolyzers. These involve initial design support and the production of test tools and prototypes to evaluate customers’ designs and finished products. At the end of the year, several customer projects were ongoing, involving prototype manufacturing of flow plates with full-scale tools.

In October 2023, we also received a SEK 22 million order from Plug Power to deliver flow plates and related products, with delivery planned during the first half of 2024.

Boosting efficiency and securing financing

During the year, we initiated two cost-reduction programs, one that we announced in August and another that we decided upon during the fourth quarter. Once they are fully implemented in the spring 2024, these programs will reduce Cell Impact’s workforce to about 50 people, more than halving the previous headcount. Going forward we will continue to monitor the company’s costs closely.

During the fourth quarter, we also concluded a successful rights issue, raising approximately SEK 129 million before issue expenses. In accordance with what was published in the prospectus, we expect that this capital injection will allow us to finance operations into 2025.

Following the rights issue and despite the cost-reduction program, we were able to secure internal core knowledge in all essential areas, which is crucial for delivering existing projects and ensuring our long-term development.

New step in production process

Cell Impact has previously been able to show that Cell Impact Forming™ is a cost-effective and scalable process that enables high-volume, high-quality forming of flow plates. Moreover, during the fourth quarter, we were also able to verify crucial improvements to two of the steps in the manufacturing process for flow plates in our Phase II program: a new punching technique and a faster, more stable welding method. In January 2024, we installed the first of three new fully automated laser cutting machines with higher capacity than our previous equipment, providing a more stable and flexible process for prototypes and medium-sized volumes.

During the year, we have doubled our production capacity and we thus continue to be a world leader in terms of the ability to manufacture flow plates.

High confidence and commitment

In conclusion, I’d like to say that we are continuing to experience significant interest in our products and confidence in Cell Impact as a participant in the green transition. This is something we’ve noticed not only from customers and suppliers, but also from the many investors who have chosen to be part of our journey. Without their trust, nothing would be possible.

The same applies, not least, to Cell Impact’s employees who are fully focused on and committed to our continued development. Thanks to all of our employees, both those who remain in the organization and those who have earlier made valuable contributions to our business, we have strong momentum.

Cell Impact will be a leader in cost-effective and high-quality manufacturing of flow plates for fuel cell and electrolyzer manufacturers.

Daniel Vallin, Interim CEO
Karlskoga, March  2024

Latest report

2023 Annual Report