Please find the Q4 2022 Financial and operational update here:  https://www.condalign.no/media/1490/condalign-as-q4-financial-statements-final.pdf

Operational update 

Strengthening of balance sheet
As informed on January 6, 2023 CondAlign was a awarded a non-dilutive NOK 8 million Innovation Contract grant from Innovation Norway to scale the unique CondAlign product offering into fast-growing markets for connecting electronics. 
Further as part of the conditions for the grant the main owner Nordic Technology Group has provided the Company with a shareholder loan of NOK 15 million.
Together with earlier awarded SkatteFUNN the Company has secured funding which secures liquidity well into 2024 with current run-rate. Targeting growing product sales volumes and increasing revenues from the second half of 2023 this puts CondAlign in comfortable financial position.

Good progress on Thermal Interface Materials cooperation with Saint-Gobain
CondAlign and Saint-Gobain are progressing in the product design of the co-development which was published November 11, 2022. During the first stage of the Project, CondAlign has confirmed that the demanding cost/performance requirements for the Thermal Interface Materials for EV batteries are met. 
In the next phase the CondAlign technology will be transferred into pilot production equipment and preparations for the CondAlign technology to be included in a Saint-Gobain production line will start.  

Growing customer pipeline
Since the start of marketing of CondAligns first product in Q4 2022 a significant growth in interest and interaction with customers. During the last months the number of customers testing the CondAlign material in their own products has grown to more than 20. CondAlign is currently targeting markets in Europe, the Nordics and USA and will strengthen the sales organization in order to materialize the high interest into actual deliveries in second half of 2023. 
The first target markets for the products are connecting electronics and disposable batteries in IoT (Internet of Things) applications such as smart labels for tracking goods. These markets are forecasted to experience mega growth in the next years.

Product launch on track
E-Align100 will be available for commercial deliveries in Q2 2023 and E-Align25 will be launched second half of 2023. Ongoing testing and quality assurance procedures are planned to be concluded by the end of Q1. 
The launch of products will significantly improve the ability to interact with customers and generate sales orders.

Advancing delivery capabilities
CondAlign is securing ability to deliver commercial volumes to customers. CondAlign has taken important steps in advancing the in-house production capability and will be in position to deliver commercial volumes to end users in the second half of 2023. Further CondAlign is on track to secure high volume production capacity in 2024 through a 3rd party contract manufacturing agreement. 
Supply of all input factors have been secured through European suppliers. 


Financial summary

The accounts for 4Q 2022 show a negative net profit of NOK 5.8m, compared to negative net profit of NOK 6.6m in 4Q 2021. In the same period capitalized internal costs were NOK 3.9m in 2022 up from NOK 1.8m in 2021 due to the development of E-Align 100.
Full year net profit is negative NOK 23.4m compared to negative NOK 22.1m in 2021.
 
During the quarter the net change in cash was negative NOK 7.8m. During 2022 the net change of cash was negative NOK 26.5m.
The Company has a cash position of NOK 14.0m at the end of 2022. The Company has an undrawn credit facility of NOK 5.0m. Total liabilities at the end of the period equals NOK 12.4m including accrued interest and leasing obligations.
 
After the period CondAlign has secured additional funding through grants from Innovation Norway (NOK 8.0m) and a shareholder loan from main shareholder (NOK 15.0m) which in addition to SkatteFUNN secure a comfortable liquidity position.

The total equity is NOK 29.2m with an equity ratio of 70.1%.




For more information, please contact:
Harald Wahl Breivik, CEO
harald.breivik@condalign.no
+47 976 33 815

About CondAlign:
CondAlign is a Norwegian technology company developing and supplying conductive films for connecting electronics and transferring heat. CondAlign’s products address existing and new markets within electronics and e-mobility. The patented technology enables development of new break-through consumer products as well as industrial applications, providing improved performance, sustainability and cost savings.
CondAlign is based in Oslo, Norway with a global customer footprint.