Axolot Solutions Holding AB (publ) - Interim report January-September 2022

The positive and exciting development continues despite a challenging situation in the world

Summary of the third quarter 2022

Financially 

• Net sales amounted to 306 tSEK (936 tSEK for the corresponding quarter in 2021), which refers to customer demo activities and studies. In the comparison period a small AxoPur^® system was sold.
• Other revenues were 0 tSEK (95), where the revenue in the comparison period relates to public research grants and project support.
• Earnings before interest and tax became -3 756 tSEK (-4 079). The lower net sales have result-wise been outweighed by less depreciation and lower personnel costs.
• Net earnings per share amounted to -0,03 SEK (-0,08). The number of shares has increased following the recent issue of shares.
• Liquid funds were 22 126 tSEK at the end of the third quarter 2022 (15 767 at the end of the third quarter 2021).

Operationally 

• Axolot’s joint project with Ahlström-Munksjö Aspa Bruk, aiming at reducing the phosphorus emissions from Aspa Bruk, has proceeded very successfully during the third quarter. A detailed project planning is ongoing together with the customer, enabling Axolot to submit an offer to the customer of a permanent installation of a full-scale system with a capacity of 300 m³ /h. This shall live up to the requirements set by the environmental authorities, in a cost-efficient manner.
• Several demos and some study have been agreed and/or performed, for example within vehicle washing, the oil industry, coating, recycling as well as purification of waterways and bays.

Quarter 1-3 2022 

• Net sales for the first nine months of 2022 were 1 184 tSEK (1 948 tSEK for the corresponding period of 2021), relating to customer demo activities and studies.
• Other revenues were 1 tSEK (345), where the revenue in the comparison period relates to public research grants and project support.
• Earnings before interest and tax became -12 968 tSEK (-13 478). Principally, lower personnel costs and depreciations explain the less negative results compared to previous year.
• Axolot has during the second quarter signed a Letter of Intent together with two Norwegian partners, in order to establish a Norwegian joint venture company for the Norwegian market. The company was established in the beginning of October. In Norway, the interest in Axolot’s water purification technology grows rapidly, and several projects are being prepared within the areas of fish farming, fish slaughter as well as smelteries.
• In the second quarter, Axolot made a preferential rights issue of 20.4 MSEK. The preferential rights issue was oversubscribed with a subscription rate of 146%. The Board decided to make use of an oversubscription option, adding another 2.85 MSEK to the cash impact from the rights issue. In total, Axolot thereby got a cash effect of totally 21.7 MSEK, net after deduction of issuing costs.

Key events during the third quarter 2022

There were no key events during the third quarter 2022.

Key events after the end of the third quarter 2022 

• Axolot Solutions signed on October 2 an agreement with two Norwegian partners, to establish a Norwegian joint venture company. The company has now been established and took its first steps into the Norwegian market for industrial water purification.
• Axolot Solutions and Fortum Waste Solutions have in October signed a cooperation and development agreement, aiming at supporting each other’s development projects around purification of certain types of contaminated water. Through this cooperation, the parties expect to be able to accelerate the development of new and more efficient methods and technologies for the purification of industrial process water.

For further information, please contact:
Lennart Holm, President and CEO Axolot Solutions, tel: +46 70 630 85 62, mail: lennart.holm@axolotsolutions.com

Anita Haak, CFO Axolot Solutions, tel: +46 70 817 11 12, mail: anita.haak@axolotsolutions.com

This information is information that Axolot Solutions Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on October 28, 2022.

About Axolot Solutions

Axolot Solutions Holding AB is a Swedish environmental technology company, providing systems for industrial water purification. The company offers a holistic solution based upon a proprietary technology. Axolot's water purification concept is cost efficient and enables a high degree of purification as well as recirculation of the water. This leads to a reduced environmental footprint. Axolot Solutions also has business activities in Norway and Finland, with affiliated companies in each of the countries. More information about the Company and its business activities can be found at www.axolotsolutions.com.

Axolot Solutions Holding AB is based in Helsingborg, Sweden, and its shares (ticker: Axolot) are listed at Nasdaq First North Growth Market, Stockholm, since November 21, 2018. FNCA Sweden AB is the Certified Adviser of Axolot Solutions. FNCA Sweden AB can be reached at info@fnca.se.