Freemelt (FREEM) Q4 2022 earnings summary

Executive summary

• 2022 marked commercial progress: eight Freemelt ONE systems sold in Europe and North America; industrial eMELT launched at the Frankfurt 3D-printing trade fair.

• Revenue rose to SEK 37.3m from SEK 0.3m in 2021; the comparison period was June 17–December 31, 2021. Net loss was SEK 67.6m.

• Development investment, including goodwill amortization, contributed to losses and negative operating cash flow; a Q1 2023 share issue raised SEK 66m before costs.

Financial highlights

• Consolidated net sales were SEK 37.323m in 2022 vs SEK 0.302m in the shorter 2021 period; operating result was SEK -67.647m and net result SEK -67.603m.

• Operating costs included SEK 53.287m of depreciation and amortization, including SEK 47.522m goodwill amortization; other operating income included a SEK 4.431m insurance recovery for shipping damage.

• Cash from operations was SEK -29.442m; investing cash flow was SEK -16.626m, and cash declined to SEK 10.923m from SEK 56.904m.

• Total assets were SEK 268.624m vs SEK 335.381m; equity was SEK 257.556m vs SEK 325.067m at year-end 2021.

Outlook and guidance

• Priorities are growing Freemelt ONE sales through direct resources and resellers, targeting universities, research institutes and research-intensive industrial customers, especially in Europe and North America.

• eMELT development will continue with selected strategic industrial partners, adapting Freemelt ONE technology for industrial production requirements and prioritized titanium and tungsten markets.

• Positive cash flow depends on higher sales; system volumes and customer decision timing remain difficult to forecast, and further external capital may be needed if operations do not cover funding needs.