CEO's message

Positioned to gear up for future business

Cell Impact’s long-term efforts led to a gradual improvement in our ability to scale up production. After the end of the quarter, we announced a transaction that marked our exit from the development phase of the project in question and our transition to continuous production.

Sales in the third quarter remained weak. Net sales totaled SEK 0.4 million (5.5). Earnings for the quarter remained negative at SEK –21.7 million. Those of you who have followed along on our journey know how hard we are working to keep our operating expenses down while also developing technology and processes to create the conditions for future business.

As a result of these efforts, we are well positioned to scale up our operations once the market gains momentum. This is where our main challenge lies: despite all its potential, the market has not yet done so. We have the technology, we have the know-how, and we have the right business relationships to lay the foundation for a positive performance.

Lengthy lead times in the industry

Although there has not been progress to report in terms of major transactions, we have continuously been carrying out development work and making other preparations for commercialization. In previous interim reports, I described the lengthy lead times that exist in our industry. I also described the strong ties that we are building with our partners. During the estimated three to five years it takes to go from an initial discussion to the point where we – together with the customer – can exit the development phase and transition to continuous production, adjustments are made to the design of the customer’s flow plate in order to optimize it for the processes for which it has been developed, but also to make the flow plate as suitable as possible for large-scale production. This collaboration connects us with the customer and makes us an essentially integral part of the customer’s product development.

At present, we have nearly 20 customers with projects in various phases of development. Though not all of these relationships will lead to serial production in the coming years, roughly half of them involve projects where I believe we have excellent potential.

Establishing continuous production

We recently announced that, together with one of our customers, we have transitioned into an initial phase of continuous production, with an expected gradual increase in the number of flow plates produced and delivered. It must be said that so far, this business is limited in scope and thus has a minor impact on our earnings, but it is still a strategically important confirmation that Cell Impact and the flow plates that we are developing are certainly on the right path.

That said, the industry remains turbulent. Both we and our customers are dependent on factors that are beyond our control. We are reliant on the market’s continued development assuming hydrogen gas, fuel cells and electrolyzers are recognized as established alternatives in the industries where our customers’ clients operate.

However, we are prepared to scale up in pace with the market as it accelerates.

Efforts to generate more customer projects

Representatives from Cell Impact continuously engage in customer outreach and other activities aimed at scaling up operations through various forms of collaboration—both in concrete customer projects and partnerships with other stakeholders.

For example, following the end of the quarter, we participated in a delegation to India organized by Business Sweden in October. As part of this initiative, we visited companies such as GH2 Solar and Oriana Power to explore potential opportunities for collaboration. In addition, we have both hosted and conducted customer visits with current and prospective clients from around the world.

Our partnership with our Japanese collaborator F.C.C. has been successful, providing valuable opportunities to demonstrate Cell Impact Forming™ in Japan and to customers in other parts of Asia. The objectives of the collaboration have been met, and we concluded the partnership during the quarter.

“We recently announced that, together with one of our customers, we had transitioned into an initial phase of continuous production, with an expected gradual increase in the number of flow plates produced and delivered.”

Continuing to build for transition

Based on our unique and patented forming technology along with our strong engineering and design expertise, we can scale up the business by developing, marketing and delivering cost-effective and high-quality flow plates to customers around the world.

In conclusion, I am optimistic and proud of the work that Cell Impact’s employees put in every day to develop unique flow plates. Together, we are laying the foundation for a sustainable transition of the world’s energy systems.

Daniel Vallin, CEO
Karlskoga, November 2025