Condalign’s traction in the market continues in the third quarter reaching +350 leads and the feedback received continue to be consistently positive, often surpassing that of our competitors. As a result, we also see that we continue to grow the number of customers, and we experience several inbound interest from new markets. There are ongoing discussions regarding high volume RFQ’s that we expect to increase steadily and be materialized late 2024 or/and in 2025. 

In August CondAlign signed a distribution agreement with industry leader Tapecon Inc. to penetrate the North American market. This collaboration marks a significant milestone for CondAlign in the commercialization of its groundbreaking offerings and preparation for its North American market penetration. CondAlign’s E-Align products leverage CondAlign’s proprietary technology, enabling seamless electronic connectivity. Deliveries to Tapecon will commence with pilot series and initial commercial supply in 2024, with projected growth to an annual revenue exceeding NOK 20 million by 2026. This partnership is a testament to CondAlign’s commitment to scaling its innovative technology globally, setting the stage for remarkable growth and industry disruption in the years to come.

On Thermal Interface Materials (TIM) for electric vehicle batteries and electronics applications we continue to see a wider market potential for our products. The TIM market is expected to grow rapidly in the years to come and we see strong interest in the ongoing commercial discussions we have with different parties. 

Securing the growing interest with large scale production through a CMO is going according to plan, and large volume production with a European CMO is expected to be signed and kicked off during Q4.  

Financially, revenues for the third quarter of 2024 ended at NOK 0.2 million, up from NOK 0.0 million in the same period last year. EBITDA (included capitalized internal development cost) ended at NOK -10.0 million, down from NOK -5.0 million in 2023. In the beginning of  the third quarter a private placement (the "Private Placement") was concluded and the company raised gross proceeds of NOK 37.6 million, including conversion of existing debt of NOK 25.8 million. This funding have secured time for building of customer backlog as well as attracting strategic partners. 

As communicated in previously, CondAlign are also in the process of identifying strategic alternatives for the company. The discussions are at an early-phase stage, and there are ongoing discussions on structure, which may involve a sale of assets or shares in CondAlign. No guarantees can be given at this stage as to whether any of these discussions may materialize or the timing of any transaction.