Freemelt

CEO comments

During 2024, we have made significant progress in our strategy to combine innovation with commercialization. Through successful collaborations with research institutes and universities, we have continued to drive innovation while strengthening our relationships with industrial users to meet their development needs and future production demands. These collaborations have not only helped to transition applications from concept to serial production but have also resulted in increased order volumes and new revenue streams.

We have initiated over 20 paid development projects with potential end customers during the year, most of which have been feasibility studies within the defense and energy sectors. We have successfully completed twelve of these projects, while the others are progressing according to plan. This demonstrates a clear acceleration compared to the previous year, when we initiated a total of three feasibility studies with potential end customers and reflects the market needs for our innovative technology. One of the year’s most prestigious achievements was our collaboration with Saab on defense applications, further confirming the value our E-PBF (Electron Beam Powder Bed Fusion) technology brings to the development of high-performance, complex solutions.

Two years ago, we introduced our industrial eMELT series concept at Formnext, and this past summer, we delivered our first machine to an industrial customer in Italy. The machine will be used to accelerate the adoption of 3D printing as a manufacturing method for serial production of industrial applications. Additionally, during the autumn, we secured two strategic agreements with global OEMs (Original Equipment Manufacturer) for proof-of-concept projects using eMELT for serial production of orthopedic implants, positioning us strongly for future large-scale deliveries of eMELT.

With the planned rights issue, we will be able to accelerate our commercialization and industrialization efforts, paving the way for a new financial position. Furthermore, we are firmly committed to achieving our long-term growth target of 1 billion SEK in revenue by 2030, with 25% coming from recurring aftermarket services, including support and maintenance. Our achievements to date and strategic initiatives provide a strong foundation for continued growth and expansion.

Financial performance

The preliminary net sales for the fourth quarter of 2024 amounted to 8.2 MSEK (7.6 MSEK), with full-year net sales totaling 20 MSEK (22.3 MSEK). During the quarter, a Freemelt ONE printer was delivered to one of the world’s premier research institutes in the US. The orderbook at year end amounted to 12.4 MSEK (1.8 MSEK).

Cash flow for the quarter was -9.3 MSEK (-13 MSEK) and for the full year -17.5 MSEK (23.1 MSEK). To address short-term liquidity needs, the company secured a bridge loan in December of 5 MSEK from Stiftelsen Industrifonden, Freemelt’s largest shareholder.

At year-end, the company's cash position was 16.6 MSEK MSEK (34.1 MSEK). The balance includes currency gains of 0.1 MSEK on bank balances in foreign currency.

Significant events during Q4

• Freemelt received an order from an industrial customer in North America for a feasibility study regarding new metal alloys for applications exposed to extreme temperatures.
• Freemelt received a machine order from a global OEM of orthopedic implants for a proof-of-concept project for serial production using eMELT.
• Freemelt received an order from a UK customer for 3D printed tungsten components.
• Freemelt was accepted into a Vinnova-funded project with Saab and Linköping University for copper production in the defense industry.
• Freemelt received additional orders from a global OEM for proof-of-concept projects for serial production of orthopedic implants using the eMELT industrial machine.
• Freemelt received an order from a customer in Singapore for the validation of tungsten manufacturing.
• Key personnel at Freemelt USA subscribed to 300,000 options as part of a previously approved incentive program.

Significant events after end of period

• Freemelt established an application center in collaboration with NC State University to support industrial users in transitioning to serial production with the eMELT machine.

Information about the rights issue

The extraordinary general meeting resolved on January 24th 2025 to authorize the board of directors to decide on the upcoming rights issue. It was further resolved to amend the articles of association with respect to the limits on the company’s share capital and number of shares. Additional information is available in the bulletin published January 24th 2025 after the extraordinary general meeting.

If fully subscribed, the rights issue is expected to raise approximately 100 MSEK before issuance costs and the associated warrants maturing in June 2026 can additionally raise up to 60 MSEK. The rights issue is backed by subscription commitments and guarantee undertakings amounting to approximately 90 MSEK. The net proceeds from the rights issue will be allocated as follows:

1. Repayment of the bridge loan from Stiftelsen Industrifonden.
2. Industrialization of the product and service portfolio.
3. Commercialization in Europe and North America.
4. General corporate purposes.

For further information about the rights issue, please refer to press releases published on the company’s website: www.freemelt.com.

Summary of developments

2024 has been a strong year for Freemelt, with numerous successful development projects and strategic collaborations laying a solid foundation for future expansion. The planned rights issue will enable continued industrialization of our technology, global market expansion, and further investment in our product portfolio.

Freemelt is uniquely positioned to capitalize on the market’s growing demand for sustainable and high-performance manufacturing solutions, and we remain committed to delivering long-term growth and value for our shareholders.

For historical financial data, please refer to annual reports and interim reports available on the company’s website: www.freemelt.com.