interim report q1 2020 - saltxtechnology.com · q1 2020 this information is information which saltx...

SaltX Technology Holding AB (publ)

INTERIM REPORTQ1 2020This information is information which SaltX Technology is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on May 5, 2020, at 8:00 a.m.

SUSTAINABLE ENERGYCONVERSION REQUIRES

ENERGY STORAGE

SaltX Technology Holding AB (publ) Interim Report Q1 2020 3

CONTENTS

2 SaltX Technology Holding AB (publ) Interim Report Q1 2020

INTERIM REPORTQ1 2020

FINANCIAL EVENTSQ1

Net sales amounted to MSEK 0.1 (-1.7)

Operatingprofit/loss(EBIT)totaledMSEK-9.2(-20.1)

CashflowfromoperatingactivitiesamountedtoMSEK-9.1(-25.1)

EarningspersharebeforeandafterdilutionamountedtoSEK-0.12(-0.29)

The CEO’s address 4Operations 6Business model 8Significantevents 9Financialoverview 10Consolidatedfinancialstatements 14Notes 17Note1Significantestimatesandassessmentsforaccountingpurposes 17Note2Income 17Note 3 Financial instruments 18Note4Transactionswithaffiliatedparties 18

Parentcompanyfinancialstatements 19AffirmationbytheBoardofDirectorsandtheCEO 21Otherinformation 22

Q1

SaltX’sChinesepartnerbeginsconstructionofpilotplant

UncertaintyregardingtheeffectsofCOVID-19

SIGNIFICANT EVENTS

KEY FIGURES

Group, TSEK Q 1 2020 Q 1 2019 FY 2019Netsales 64 -1,706 193Operatingprofit/loss(EBIT) -9,158 -20,143 -83,830Earningspersharebeforeandafterdilution -0.12 -0.29 -1,22Equity 121,446 122,562 131,748Cashflowfromoperatingactivities -8,958 -25,144 -58,820Equityratio(equity/balancesheettotal) 73% 69% 73%

" THE EXPANSION OF RENEWABLE ENERGY CREATES THE NEED FOR LARGE-SCALE ENERGY STORAGE. IT BENEFITS OUR FUTURE JOURNEY WITHIN THE COMPANY.

READ MORE ON PAGE 4

4 SaltX Technology Holding AB (publ) Interim Report Q1 2020 SaltX Technology Holding AB (publ) Interim Report Q1 2020 5

THE CEO’S ADDRESS

AsignificantpartofSaltX’soperationsistoresearchanddevelopenergy storage in the company’s patented nanocoatedsalt.Partofthisworkiscarriedoutin-houseandthereforehasbeenabletocontin-uewithoutanyimpactfromcovid-19.

GREATER FLEXIBILITY Workontheso-calledfluidizingbediscontinu-ing. The bed is a reactor alternativetotheheat-ingscrewweused,forexample,intheplantinBerlin. Reactors are the verycoreoftheprocesswherethesaltischargedwithheatorelectricityand then discharged to emit heat.Thefluidizingbed,in

short,willgiveusgreaterflexibility,efficiencyandreliability.OurowntestsaswellastestsdoneattheUniversityofMunichhasfallenoutwell.Wedoneedfurthertestsandrunstoevaluateandop-

timizethefinalfluidizedbedsolution.

WORK CONTINUES DURING 2020When it comes to the collaborationwithourthreepartners,covid-19has had a major impact. OurworkwithourChi-

nesepartnerShuangliang,whowasthefirsttoclosedownduetocovid-19,hasnowresumedtheirwork.Thenanocoatedsaltthatwehavedeliv-ered to Shuangliang has nowarrivedattheChi-neseport,whichenablesthestart-upoftests.Weestimatethatthepilotplantwillbecompletedin2020.AsforourtwoEuro-

pean partners — Spanish INERCOandGermanSteinmüller—theworkwentaccordingtoplanatthebeginningoftheyearbuthasnowbeenpausedduetorestrictionsofcovid-19.Ourowndevel-opmentofthefluidizedbed and the nanocoated

salthascontinuedwithboth external experts and internalexpertise.

NEW PHASEThe project in Berlin withVattenfallisonitswaytoanewphasewhere,intime,weex-pect to be able to test oursolutionwithafluid-izingbed.Itisessentialforustoverifyourworkinalarge-scaleenviron-ment similar as the one atVattenfall.

LARGER FOCUSThetransitionintheenergyindustrywaswellunderwaybeforecovid-19brokeout,withareductionincoalpowerandanincreaseinrenew-able energy sources in theEU.Itisourconvic-tionthatthistransitionwillcontinueandproba-blywithanevengreaterfocusandcommitment.Theexpansionofrenew-able energy creates the needforlarge-scaleener-gystorage.Itbenefitsourfuturejourneywithinthecompany.Ialsowanttotakethe

opportunitytomentiontwointerestingoppor-tunitieswearecurrentlyworkingwith.

HELSINKI ENERGY CHALLENGEThecapitalofFinlandhas announced a global sustainabilitycompetitiontofindanewsustainableheatingsolutionforthecity.Duringtheyear,wewillsubmitagrantthatcomplieswiththere-quirements set by Hel-sinkitomeetthegoalsofasustainableheatingsolutionforthecity.

EASE MEMBERSHIPEarlierthisyear,wechoseto join the European AssociationforStorageofEnergy.Anorganiza-tionbasedinBrussels,thatworksprimarilywithvariouspolicymakerstosupportthedevelopmentandimplementationofinnovativeenergystoragetechnologies.

Ithankyouforthetrusttocontinuethiscompanywithtalentedandcompe-tent employees.

Carl-Johan LinérCEO

OUR OWN DEVELOPMENT OF THE FLUID-IZED BED AND THE NANO-COATED SALT HAS CONTINUED WITH BOTH EXTERNAL EXPERTS AND INTERNAL EXPERTISE. SaltX testanläggning

invigs av Marcus Witt, Vattenfall och Harald Bauer, VD SaltX, Till höger Simon Ahlin, Head of Sales SaltX.

Carl-Johan Linér

SaltX Technology’s operations have largely progres-sed according to plan in Q1, although covid-19 has had a delayed impact on the business. This impact is also affecting Q2.


SALTX STORES THERMAL ENERGY

THE SALTX ECOSYSTEM

OPERATIONS

Byheatingthenanocoat-ed salt using electricity or thermalheat,theenergycanbestoredforhours,daysorweeks-andthenusedwhenitisneededmost.

SaltX technology is especially suited to the marketwherehigh-qualitysteamatbetween160—450degreesCisrequired.This requirement can befound,forexample,inindustries,citiesorincogenerationplants.

THE WAY FORWARDThecompany’staskistosellanddelivertheworld-patentednano-coatedsalttogetherwithkeyknowledgeofthetechnology to customers and partners. SaltX is developingthefinishedsolutionwithpartnerswhoalreadysupplyener-gy plants.

COMPONENTSSaltX energy storage

consistsoffourkeycomponents:twosilosforstoring the nanocoated salt,andtworeactorswherethesaltischargedordischarged.Thesalt,togetherwiththereac-tors,formtheverycoreoftheenergystoragesolution.Incoopera-tionwithourpartners,areactor technology has beenidentifiedthatisconsideredtobesignifi-cantlymoreefficientandmore scalable than the oneusedinSaltX’sfirstmajorpilotplant,locatedin Berlin. The technolo-gy-thefluidizedbed-iswellknownandismainlyusedincoal-firedpowerplants. The next step is to provethetechnologyinpre-commercial installa-tions.

Chargeswithsurplusenergy—electricityand/orheat

Dischargeshigh-temperaturesteamat160—450degreesC

Endcustomersmaybeindustries, cogenerationplantsorothercustomerswhoneedhigh-temperaturesteam.

Ontheroadtocommercializingthecompany’s large-scale energy storage solution,EnerStore,thereareanumberofpartnerswithwhomSaltXwillbeworking.Dependingonthemarketandthefinalapplication,thesepartnersmaydiffer,butinthemaintheywillhavefourdifferentfunctions.Theseareassalt suppliers that prepare and process nanocoatedsalt,OEMs(OriginalEquip-mentManufacturer)thatmanufacturekeycomponents,EPCs(Engineer,Pro-cure,Construct)thatinstallenergystor-agesystemsand,finally,endcustomers,so-calledoff-takers,whomaybeenergycompanies,industriesandcities,seetheimage to the right.

SaltX is a technology company focusing on energy storage. Today, SaltX is developing a thermochemical energy storage solution based on nanocoated salt. The world is transitioning to renewable energy sources. This transition requires large amounts of energy storage in order to meet supply and demand at the right time.

ENERGY PRODUCTION ENERSTORE OFF TAKERS

ENERGY STEAM

ORIGINAL EQUIPMENT MANUFACTURERS (OEM)KEY COMPONENTS (CHARGER/DISCHARGER ETC.)

ENGINEERING PROCURMENT CONSTRUCTION (EPC)INSTALLERS OF THE ENERGY STORAGE PLANT

SALT PRODUCERSPREPARE AND PROCESS NCS

OFF TAKERSEND CUSTOMERS (ENERGY COMPANIES, INDUSTRIES, MUNICIPALITIES)


BUSINESS MODEL

SaltX’spositioninthevaluechainisdeliveryofthe nanocoated salt and knowledgearoundittoselectedsystempartners,whobuildandcommissiontheentireenergysolution.

THE ECOSYSTEM IS GROWINGThe company is depen-dentonfindingtherightpartnerswhocanassistwithotherpartsforacomplete plant. An im-portantpartofthepuzzleisthepartnershipwiththe company’s suppliers ofsaltandprotectivematerial. The companies NordkalkandWackerare in place to supply

thefutureprojectswithnanocoated salt.

THREE IMPORTANT PARTNERSThree important partners arenowinplace—Ger-manSteinmüller,SpanishINERCOandChineseShuangliang.

All partners are com-petent in building en-ergyplants.In2020–theworkofbuildingpre-commercialfacilitiesand to set common plans forcommercializationandcustomerofferswillcontinue.Thecompany'spartnerswillalsoplayakeyroleinthesaleofenergy storage projects.

SIGNIFICANT EVENTS

OFF TAKERENERSTORE EPCOEMIPSUPPLIER

AFFÄRSMODELL

SaltX develops and sells energy storage based on nanocoated salt in conjunction with its partners. The company’s future revenues will consist primarily of sales of nanocoated salt, license fees and technology transfer. Revenue streams can also come from the finished plant in the form of installation and energy fees.

OEM/EPC: SPAIN

OEM/EPC: GERMANY

OEM/EPC: CHINASaltX’s Yaou Wu with an employee from Shuangliang Boiler in China.

... DURING THE FIRST QUARTERSALTX’S CHINESE PARTNER BEGINS CONSTRUCTION OF A PILOT PLANTSaltXTechnology’spartnerinChina,ShuangliangBoilerCo.Ltd,isenteringthenextphaseofthepilotproject.Aspartofthedevelopmentwork,thedrawingshavebeencompletedandonetonneofnanocoatatsalthasbeensupplied.Thepilotplantisexpectedtobecompletedin2020.

... OTHER INFORMATIONUNCERTAINTY REGARDING THE EFFECTS OF COVID-19

Duringthefirstquarterof2020,thespreadofCOVID-19inSwedenandtherestoftheworld

hashadasignificantimpactontheeconomyandfinancialmarkets,bothinSwedenandinternationally.However,atthetimeofthereport'ssubmission,managementandtheBoardofDirectorshavenotnoticedanysignificantimpactontheCompany'sinternaloperations.TheBoardofDirectorsandmanagementfindthatthecompanyhasastrongfinancialposi-tionafterthenewshareissueinautumn2019.Moreover,thecompanyhasnobusiness-criticaldependence on any suppliers. The impact on thecompany'spartnersdescribedonpage4isjudgednottobedecisiveforSaltX'soperations.

SaltX Technology Holding AB (publ) Interim Report Q1 2020 1110 SaltX Technology Holding AB (publ) Interim Report Q1 2020

FINANCIAL OVERVIEW

JANUARY–MARCH – Q1

REVENUE, EXPENSES AND EARNINGS

Net salesNetsalesforthequarteramountedtoTSEK64(-1,706).Duringthefirstquarterof2019,SaltXendedalicensingandcooperationagreementandrepaidMSEK3.2inprevious-lypaidlicensefeesthatwerepartlyrecognized.Thisexplainsthenegativesalesin2019.Thecooperationwasterminatedbecause it had not produced the intended results.

Other income Other income in the quarter to-taledTSEK81(1,756).Forthefirstquarterof2019,thiscon-sistedprimarilyofpubliccon-tributionsfromtheEuropeanUnion’sHorizon2020projectfortheHeatBoostproject.

ExpensesExpenses during the quar-

teramountedtoTSEK-9,303(-20,193)brokendownasotherexternalexpensesTSEK-3,580(-9,408),personnelcostsTSEK-4,200(-10,137)anddepreci-ationandimpairmentoffixedassetsofTSEK-1,523(-648).Capitalizeddevelopmentex-penditureismadeupoftwoparts: the basic technology and

the large-scale energy storage application.Depreciationofbasic technology in the amount ofMSEK3.6peryearoveraten-year period commenced in 2020.Thequarterhasthere-forebeenchargedwithTSEK903inincreaseddepreciationfromthis.Intotal,expensesarelow-

erthanlastyearduetofeweremployeesandaloweractivitylevel.

Operating profit/loss (EBIT)Operatingprofit/losswasTSEK-9,158(-20,143).

Financial itemsProfit/lossfromfinancialitemsamountedtoTSEK-1,055(-650)andconsistedofinterestonliabilitiestotheSwedishEnergy Agency and Almi Före-tagspartner,aswellasonleas-ingliabilities.Theinterestrateontheseliabilitiesisaround6percent.Inaddition,TSEK-467isincludedinreducedfairvalueofshares.

Profit/loss before taxProfit/lossbeforetaxwas

TSEK-10,163(-20,793).Earningspersharebeforeand

afterdilutionamountedtoSEK-0.12(-0.29).

CASH FLOW, INVESTMENTS AND FINANCIAL POSITION

Cash flow and liquidityCashflowfromoperatingac-tivitiesinthequarterwasTSEK-8,958(-25,144).Groupcashequivalentsat

theendofthequartertotaledTSEK75,440(45,433)

Long-term liabilitiesLong-termliabilitiestotaledTSEK32,063(34,674)andconsistedofloansfromtheSwedishEnergyAgencyforTSEK24,388andAlmiFöre-tagspartnerforTSEK3,900andthelong-termelementofleasingliabilities.ArequestforremissionofmostoftheloanwassenttotheSwedishEner-gyAgency,butwasrejected.Reconsiderationofthedecisionwillberequested.TheloanfromAlmiisamor-

tizedmonthlyfor5years.

InvestmentsDuringthequarter,invest-mentsweremadethatimpact-edcashflowbyTSEK-230(-422).Theseconsistedofongoinginvestmentsinnewpatents,includingpatentappli-cationsinadditionalmarkets.

EquityEquityattheendofthepe-riodtotaledTSEK121,446(122,562)orSEK1.38(1.69)

DEVELOPMENT PER QUARTER TSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020Netsales -1,706 867 165 867 64Operatingprofit/loss(EBIT) -20,143 -45,763 -6,983 -10,941 -9,158Cashflowfromoperatingactivities -25,144 -11,093 -12,427 -10,156 -8,958Earningspershare,SEK -0.29 -0.66 -0.10 -0.16 -0.12

pershareandhasfallenwiththenegativeearnings.Theeq-uityratioonthesamedatewas73 percent.

PARENT COMPANYTheoperationsoftheparentcompany,SaltXTechnologyHoldingAB(publ),includecom-pany-wideservicesandman-agementofthesubsidiarySaltXTechnology AB and maintaining thecompany’slistingonNas-daqFirstNorthPremierGrowthMarket.Profit/lossbeforetaxfor

theperiodwasTSEK-2,444(-4,195).Theparentcompany’savailableliquidfundsasperMarch31totaledTSEK72,435(38,353).

SHARE CAPITALShare capital at the end oftheperiodtotaledSEK7,034,958.72consistingof87,936,984sharesatanominalvalueofSEK0.08.NewcapitalissueswerecarriedoutbeforetheendoftheyearandwereregisteredinJanuary2020.

SHARESShares in SaltX are listed on Nasdaq First North Premier

GrowthMarket.NasdaqFirstNorthPremierGrowthMarket.

Share warrantsAcapitalissuein2018wascarriedoutintheformofunitsconsistingofoneshareandonesharewarrant.14.8sharewar-rantswereissued.Afterminoradjustmentsduetothe2019capitalissue,1.9555sharewar-rants are required to subscribe foroneshareattheexercisepriceofSEK12.71duringtheperiodJanuary1,2020toOc-tober31,2021.Withfullsub-scriptionofthesewarrants,thenumberofshareswillincreaseby7.5million,correspondingtoadilutionof9percent,andthecompanywillreceiveSEK96million.

Incentive programsTheAnnualGeneralMeetinginApril2017decidedtoautho-rizetheBoardtoissue750,000warrants,whichwereofferedto management and other per-sonnel,primarilynewemploy-ees,intheGroup.ThisprogramwaslaunchedinSeptember2017.Onewarrantequatestoone(1.009)share,subscriptioncantakeplaceinJune2020

andthestrikepricewassetonthedayofissueat150per-centofthecurrentshareprice,whichwasSEK48.36,afteraminoradjustmentforthe2019and2019capitalissues.Em-ployeeshaveacquired725,000warrants,ofwhichthecom-panyrepurchased260,000warrants,allatmarketvalue,leavinganetfigureof465,000outstandingwarrants.Ifex-ercisedinfull,thecompanywillreceiveMSEK23.5.Theseshares correspond to a 0.7 per-centpotentialdilution.

Earnings per shareEarningspershareforthefullyearamountedtoSEK-0.12(-0.29)basedonanaveragefig-ureof85,380,065(70,718,660)shares,beforedilution.Whencalculatingthenumberofsharesafterfulldilution,theadditionaloutstandingsharesfromwarrantprogramsissuedhavebeentakenintoaccount,although this has not had any effectbecausetheresultisnegative.AsofDecember31,2020,52

shares,representinglessthan0.01percentoftotalshares,hadnotyetbeensubscribedfor

CHANGES IN SHARE CAPITAL IN 2019 Change in Accumulated Change in Accumulated share capital share capital no. of shares no. of sharesOpeningbalance2020 5,807,637.76 72,595,472Newissue 1,161,527.52 6,969,165.28 14,519,094 87,114,566Warrantyissue,guaranteefee 65,793.44 7,034,958.72 828,418 87,936,984


fromthemergerbetweenthecompany and SaltX Technology inApril2016.

Uncertainty regarding the effects of covid-19Duringthefirstquarterof2020,thespreadofCOVID-19inSwedenandtherestoftheworldhashadasignificantimpact on the economy and financialmarkets,bothinSwe-denandinternationally.How-ever,atthetimeofthereport’ssubmission,managementandtheBoardofDirectorshavenotnoticedanysignificantimpactontheCompany’soperations,exceptthatmostmeetings– both internal and external – arebeingheldonline,whichis judged to delay processes tosomeextent.TheBoardofDirectorsandmanagementfindthat the company has a strong financialpositionafterthenewshareissueinautumn2019.Moreover,thecompanyhasnobusiness-criticaldependenceonany suppliers. Nor is any im-pact on the company’s partners judgedtobedecisiveforSaltX’soperations.

Accounting policiesTheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS)suchastheyhavebeenadoptedbytheEU,andRFR1SupplementaryAccountingRulesforGroups,andtheSwedishAnnual Accounts Act. The inter-im report has been prepared in accordancewithIAS34InterimFinancialReporting.Theparentcompany’sfinancialstatementshavebeenpreparedinaccordancewiththeSwedish

Annual Accounts Act and the SwedishFinancialReportingBoard’srecommendationRFR2AccountingforLegalentities.TheapplicationofRFR2meansthat the parent company in theinterimreportforthelegalentityappliesalloftheIFRSandstatements adopted by the EU asfarasthisispossiblewithintheframeworkoftheSwedishAnnualAccountsAct,theSwed-ishPensionObligationsVestingActandinconsiderationoftheinter-relationbetweenaccount-ingandtaxation.Theinterimreportfortheparentcompanyhas been prepared in accor-dancewiththeSwedishAnnualAccounts Act.Theaccountingpolicies

appliedareinaccordancewiththose described in the SaltX Group’sannualreportfor2019.

CONSOLIDATED STATEMENT OF COMPREHENSIVE RESULT - SUMMARY

TSEK Q 1 2020 Q 1 2019 FY 2019 Netsales 64 -1,706 193Otheroperatingincome 81 1,756 6,144TOTAL 145 50 6,337

Costofproductssold — — -126Otherexternalcosts -3,580 -9,408 -24,542Personnelcosts -4,200 -10,137 -27,860Depreciationandimpairementoffixedassets -1,523 -648 -37,639TOTAL OPERATING COSTS -9,303 -20,193 -90,167

OPERATING PROFIT/LOSS -9,158 -20,143 -83,830 Financial income — — 8Financialexpenses -1,005 -650 -3,875FINANCIAL ITEMS - NET -1,005 -650 -3,867

PROFIT/LOSS BEFORE INCOME TAX -10,163 -20,793 -87,697

PROFIT/LOSS FOR THE PERIOD -10,163 -20,793 -87,697

Earnings per share calculated on earnings attributable to parent company shareholders, SEKBasicearningspershare -0.12 -0.29 -1.22Earningspershareafterdilution -0.12 -0.29 -1.22

TherearenoitemsintheGroupthatarereportedinothercomprehensiveincome,whichiswhytotalcomprehensiveincomecorrespondstonetprofit.Netprofitandtotalcomprehensiveincomefortheperiodareattributableintheirentiretytoparentcompanyshareholders.


CONSOLIDATED BALANCE SHEET - SUMMARY

TSEK Mar 31, 2020 Mar 31, 2019 Dec 31, 2019

ASSETSFixed assetsIntangible assets Capitalizedexpenditureondevelopmentwork 74,237 107,366 75,139Patentsandtrademarks 1,463 2,898 1,354 75,700 110,264 76,493

Tangible assets Equipment,tools,andinstallations 1,325 1,909 1,445Access-rightsassets 5,063 6,594 5,443 6,388 8,503 6,888

Financial fixed assets Shares 5,650 7,800 6,117 5,650 7,800 6,117Total fixed assets 87,738 126,567 89,498 Current assets Accountsreceivable 63 918 1,077Othercurrentassets 2,112 3,645 2,346Prepaidexpensesandaccruedincome 1,564 2,126 1,462Cashandcashequivalents 75,440 45,433 85,321Total current assets 79,179 52,122 90,206TOTAL ASSETS 166,917 178,689 179,704 EQUITY AND LIABILITIES Equity Sharecapital 7,035 5,808 5,808Rightsissue,toberegistered — — 1,228Othercontributedcapital 665,713 590,989 665,851Accumulatedprofitorlossincludingprofit/lossfortheyear -551,302 -474,235 -541,139Total equity 121,446 122,562 131,748

Long-term liabilities Otherliabilities 28,288 29,758 28,588Leasingliabilities 3,775 4,916 4,150Total long-term liabilitiesr 32,063 34,674 32,738

Current liabilities Accountspayable 1,297 3,113 2,237Leasingliabilities 1,467 1,726 1,447Otherliabilities 5,291 1,375 4,954Accruedexpensedanddeferredincome 5,353 15,239 6,580Total current liabilities 13,408 21,453 15,218TOTAL EQUITY AND LIABILITIES 166,917 178,689 179,704

CONSOLIDATED STAEMENT OF CHANGES IN EQUITY

AttributabletoParentCompanyshareholders Accumulated Rightsissues Other profit/loss under contributed incl.profit/loss TotalTSEK Sharecapital registration capital fortheyear equity

Opening balance Jan 1, 2019 4,911 888 591,241 -453,442 143,598Netincome/lossJan–Mar,2019equalto totalcomprehensiveincome — — — -20,793 -20,793Total comprehensive income — — — -20,793 -20,793Transactions with shareholders in their capacity as shareholders:Rightsissues 897 -888 — — 9Issueexpenses — — -250 — -250Warrantssold — — -2 — -2Ending balance Mar 31, 2019 5,808 — 590,989 -474,235 122,562

Opening balance Apr 1, 2019 5,808 — 590,989 -474,235 122,562Netincome/lossApr–Dec,2019equalto totalcomprehensiveincome — — — -66,904 -66,904Total comprehensive income — — — -66,904 -66,904Transactions with shareholders in their capacity as shareholders:Rightsissues,underregistration — 1,228 84,508 — 85,736Issueexpenses — — -9,646 — -9,646Closing balance Dec 31, 2019 5,808 1,228 665,851 -541,139 131,748

OpeningbalanceJan1,2020 5,808 1,228 665,851 -541,139 131,748Netincome/lossJan–Mar,2020equalto totalcomprehensiveincome — — — -10,163 -10,163Total comprehensive income — — — -10,163 -10,163Transactions with shareholders in their capacity as shareholders:Rightsissues 1,227 -1,228 — — -1Issueexpenses — — -138 — -138Closing balance Mar 31, 2020 7,035 — 665,713 -551,302 121,446


CONSOLITADED CASH FLOW STATEMENT

TSEK Q 1 2020 Q 1 2019 FY 2019

Cash flow from operating activities Profit/lossafterfinancialitems -10,163 -20,793 -87,697Adjustmentsfornon-cashitemsetc. 2,133 746 39,899 -8,030 -20,047 -47,798Increase/decreaseinoperatingreceivables 1,146 7,164 8,968Increase/decreaseinoperatingliabilities -2,074 -12,261 -19,990Cash flow from change of working capital -928 -5,097 -11,022Cash flow from operating activities -8,958 -25,144 -58,820 Cash flow from investing activities Acquisitionofintangibleassets -230 -421 -2,038Cash flow from investing activities -230 -421 -2,038 Cash flow from financing activities Newcapitalissue,netofissueexpenses -282 -243 75,847Changeinlongtermleasingliabilities -411 -431 -1,340Cash flow from financing activities -693 -674 74,507

Cash flow for the period -9,881 -26,239 13,649Cashequivalentsatbeginningofperiod 85,321 71,672 71,672Cashequivalentsatendofperiod 75,440 45,433 85,321

NOTE 1 SIGNIFICANT ESTIMATES AND ASSESSMENTS FOR ACCOUNTING PURPOSES

Theestimatesandassumptionsthatrepresentasignificantriskofmaterialadjustmentsinthecarryingamountsofassetsandliabilitiesare: HistoricalfinancingfromtheSwedishEnergyAgency Long-termliabilitiesconsistlargelyofloansfromtheSwedishEnergyAgencyintheamountofTSEK24,388.ArequestforremissionofmostoftheloanwassenttotheSwedishEnergyAgency,butwasrejected.Reconsid-erationofthedecisionwillbe requested.

Intangible assets: The largest assetrecognizedinSaltX’sbalancesheetiscapitalizeddevelopmentexpenditure.Thisisattributabletothebasic technology and the

large-scale energy storage application,EnerStore.Animpairmenttestofthisassetis carried out based on an estimateofwhatthecompa-ny’s technology can lead to intheformoffuturerevenueandcashflow.Importantcomponentsincalculatingthesefuturevaluesarevol-umegrowth,profitmarginanddiscountrate.Asignificantchangeofimportantcompo-nentsinthecalculationmaymean that the balance sheet item needs to be adjusted.

Depreciationofbasictech-nologyintheamountofMSEK3.6peryearoveraten-yearperiodcommencedin2020.

Development TheGroupassesseswhenthe product or process is technically and commercial-lyfeasibleandthecompanyhassufficientresourcestocompletedevelopmentand

thereafteruseorselltheintangibleasset.Iftheseconditionsaremet,anin-tangibleassetisrecognizedin the balance sheet.

Research and promotional measures

Duringtheperiod,theGroupfocusedontheapplicationforlarge-scaleenergystor-age,EnerStore.Theactivitieshavemainlyconsistedofsearchingforamoreefficientkeycomponentforcharginganddischargingenergyfromthenanocoatedsalt.Inad-dition,resourceshavebeenputintoinitialsalespromo-tionmeasuresintheformofworkonandpreparationofpre-commercialfacilitiesinconjunctionwithpartners.Theseactivitiesandeffortshavethecharacterofre-searchandsalespromotionactivitiesandareexpensedas they arise.

NOTES

REVENUE Q1 2020 Q1 2019 FY 2019Revenuefromagreementswithcustomers 64 -1,706 193Otherrevenue 81 1,756 6,144Total revenue 145 50 6,337 TheGrouphasrevenuefromcustomersasspecifiedbelow:

Q1 2020 Q1 2019 FY 2019Productsales 14 162 393Licenseandroyaltyrevenue — -2,178 -2,067Developmentcollaboration 50 310 1,867Total revenue from customers 64 -1,706 193


Estimatesandassessmentsarecontinuouslyevaluatedandarebased on historical experience andotherfactors,includingex-pectationsoffutureeventsthatare considered reasonable under prevailingconditions.

NOTE 2 REVENUE

TheGrouphasreportedthefol-lowingamountsintheincomestatementrelatingtorevenue(see the table on the preceding page).

NOTE 3 F INANCIAL INSTRUMENTS

Financialassetsarevaluedatfairvaluethroughtheincomestatement Shares of listed ompanies as of Mar 31, 2020 Mar 31, 2019

CentralDevelopment HoldingsLtd 5,650 7,800

(formerlyZhongFaZhanHoldingsLtd)

Theassetshavebeenvaluedatlevel1inthefairvaluehierarchy.FortheGroup’sborrowing

fromAlmiFöretagspartner,thecarryingamountofthebor-rowingcorrespondstoitsfairvaluesincetheinterestrateonthisborrowingisatparitywithcurrentmarketinterestrates.However,differenceshavebeenidentifiedinregardtotheloanfromtheSwedishEnergyAgency.Thereportedvalueofthe

liability is expected to change. ArequestforremissionofmostoftheloanwassenttotheSwedishEnergyAgency,butwasrejected.Reconsiderationofthedecisionwillberequested.Inregardtothefairvalue

ofshort-termfinancialassetsandliabilities,thefairvalueisestimatedtocorrespondtothecarrying amount since the dis-counteffectisnotmaterial.

NOTE 4 TRANSACTIONS WITH AFFIL IATED PARTIES

In2020,notransactionswithaffiliatedpartieshaveoccurredother than agreed payments to theBoardofDirectorsandman-agement.

TRUE VALUE March 31, 2020 March 31, 2019

CarryingamountCarryingamount Carryingamount CarryingamountState Energy Agency 24,388 23,830 24,488 23,830

PARENT COMPANY INCOME STATEMENT

TSEK Q 1 2020 Q 1 2019 FY 2019

NET SALES 600 600 2 400 Otherexternalcosts -1,009 -1,881 -4,444Personnelcosts -1,634 -3,431 -8,876TOTAL OPERATING EXPENSES -2,643 -5,312 -13,320

OPERATING RESULT -2,043 -4,712 -10,920 Financialincome 66 517 3,198Financialexpenses -467 — -1,683FINANCIAL ITEMS — NET -401 517 1,515

PROFIT BEFORE TAX -2,444 -4,195 -9,405 Groupcontribution — — -83,000PROFIT/LOSS FOR THE PERIOD -2,444 -4,195 -92,405


PARENT COMPANY BALANCE SHEET

TSEK Mar 31, 2020 Mar 31, 2019 Dec 31, 2019

ASSETS Financial assets Participationsinsubsidiaries 197,270 197,270 197,270Shares 5,650 7,800 6,117Total fixed assets 202,920 205,070 203,387 Current assetsCurrent receivables Otherreceivables 351 350 782AccountsreceivablefromGroupcompanies 8,817 57,069 750Prepaidexpensesandaccruedincome 452 535 265Cashandbankdeposits 72,435 38,353 82,458Total current assets 82,055 96,307 84,255TOTAL ASSETS 284,975 301,377 287,642 EQUITY AND LIABILITIES Equity Restricted equity Sharecapital 7,035 5,808 5,808Othercontributedcapital — — 1,228 7,035 5,808 7,036Non-restricted equity Sharepremiumreserve 447,058 372,334 447,196Retainedearnings -170,568 -78,163 -78,163Profit/lossfortheyear -2,444 -4,195 -92,405 274,046 289,976 276,628Total equity 281,081 295,784 283,664

Current liabilities Accountspayable 523 328 778Otherliabilities 236 124 158Accruedexpensesanddeferredincome 3,135 5,141 3,042Total current liabilities 3,894 5,593 3,978TOTAL EQUITY AND LIABILITIES 284,975 301,377 287,642

AFFIRMATION BY THE BOARD OF DIRECTORS AND THE CEOTheBoardofDirectorsandCEOaffirmthatthisinterimreportprovidesatrueandfairviewoftheParentCompanyandtheGroup’soperations,financialpositionandresultsfortheperiodconcerned.

Stockholm,May5,2020BoardofDirectors

ÅkeSund StaffanAndersson TonyGrimaldi chair board member board member

Hans Holmström Erica Larson Elin Lydahl board member board member board member

Carl-Johan Linér CEO

This interim report has not been reviewed by the Company’s auditor.

22 SaltX Technology Holding AB (publ) Interim Report Q1 2020

OTHER INFORMATION

CALENDAR InterimReportQ22020 August25,2020InterimReportQ32020 November4,2020Year-endReport2020 February17,2021

ADDRESSSaltX Technology Holding AB (publ)Västertorpsvägen13512944HÄGERSTEN

Forfurtherinformation,pleasecontact:

Carl-JohanLinér,CEO+46(0)[email protected]

HaraldBauer,CFO+46(0)[email protected]

interim report q1 2020 - saltxtechnology.com · q1 2020 this information is information which saltx...

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