CEO COMMENT
We have now produced a number of consecutive large-scale batches within specifications which has enabled us to build up a stock of products for sale. We have also received our first slightly larger order for NLAB Saga® and we are now intensifying our sales efforts.

It is very gratifying that the systematic work to further develop the large-scale production of our silica media NLAB Saga® has borne fruit – the plant now delivers significantly larger volumes than before. Although this is not reflected in sales for the second quarter, it entails two important things. One is that we have a finished goods inventory with products to sell. The second is that we are now confident of being able to meet delivery times, which means that we can drive sales of these products harder.
 
In June, we received our first major order for NLAB Saga® from a pharmaceutical manufacturer in China. The customer has earlier evaluated the product on a small scale and has now placed an order for production. This is a customer we have been working with for a long time and in several steps, which is typical of the sales process for this type of product. The order represents a small part of the customer's total needs, which is why we see good opportunities for further sales in the long term. This is our first step into the Chinese market for preparative silica and we are very positive regarding our opportunities to establish ourselves as a recognized supplier of high-quality silica and gradually gain market shares.
 
Sales for the second quarter amounted to SEK 2.2 million and mainly consisted of the above order. Finished goods inventory increased with SEK 15.1 million during the quarter to SEK 19.3 million, and mainly consists of NLAB Saga® but also of NLAB® Siv, our first non-silica-based purification media.
 
We have received indications that the production-scale evaluation that a customer has performed of NLAB® Siv was successful, but that they have not yet completed their internal documentation process. We are very optimistic regarding further business with this customer and our assessment that this customer will gradually replace their current product with NLAB® Siv remains. When the customer places an order, we are ready to deliver.
 
The insulin manufacturer in Asia who is evaluating our silica media NLAB Saga® in production scale has not yet completed their evaluation. We remain optimistic regarding future business with this customer as well.
 
In parallel, our work on product development continues. By the end of the year or in the first half of next year, we expect to launch additional products that can streamline our customers' workflows. The aim is to expand our product portfolio and thereby increase our addressable market, which is an important part of our long-term growth strategy for the company.
 
In the previous interim report, I wrote that we expect to significantly increase sales during the year and that we consider it reasonable to reach sales corresponding to an annual rate of SEK 100 million by the end of the year. We stand by this. With a silica production facility now delivering significantly larger volumes, we are now increasing our sales efforts and look forward to the second half of 2024.
 
 
Södertälje in July 2024 
Andreas Bhagwani, CEO