Insplorion AB (publ)

Welcome to this episode of Investor Studios, where we have the opportunity to talk about InSplorion with InSplorion. The company released its Q2 report today, which contains a lot of exciting news, and we will soon be able to take part in a presentation of this. Then follows a Q&A, and for those of you who are listening live, you can write your questions in the chat. And with us from InSplorion we have, as usual, Johan Lask, CEO of InSplorion. And with that said, we welcome you and hand it over to you for your presentation. Please.

Thank you, Adam. Johan Asket and I are here to talk about our quarterly report and answer questions you may have about it. We work with hydrogen sensors, as everyone knows, for an accelerated transition to a sustainable future. If you look at the quarter in a nutshell, we march on from a development company to a commercial product company. During the quarter, we could, among other things, that a large American private company has placed an order on our sensors. We launched our NPS P2 hydrogen gas detector down in Rotterdam. We could also update here during July that we expect a larger order from our strategic partner Consilium. Very exciting and very fun. It was an upgrade order from the slightly smaller order that we did earlier this year. And it is also only one customer among those who trigger this business, which we think is very good. It is not something that should be put on hold. We look forward to more customers there. During the quarter, we had a rather high burn rate, mainly linked to development work, ATEX, but also material purchases to build these sensors that are needed, among other things, for ATEX certification. But we will get these material purchases back later when we sell them, then they end up as KORGs instead. And not least, during the morning we announced that we are doing a targeted emission of 6.3 million kronor, which we are very happy for and grateful for this support. It gives us a strong position to move forward and we look forward to developing value from there. Before I move on, I just wanted to add that there is of course a lot of writing in the media about hydrogen and that it's a bit of a remote project and things like that. It's a pretty natural cycle for a future industry. There will always be a little hype, then there will be a phase where you simply need to calibrate expectations. But the bottom line is that we need clean hydrogen in order to be able to make a change. The missing piece, as the Hydrogen Council says. And for it to be able to be part of the change, it has to be safe. And that's where we come in. As everyone knows, our sensors are, first of all, very specific for oxygen. Not everyone is. It's the smallest molecule out there, and that makes it not so easy to measure. But because it is so small, it also smudges easily. But then of course you want to detect it as quickly as possible, and we are very, very fast in our detection. It can also work in environments where others have problems. For example, low oxygen environments and others. I was just going to say something about what our business is doing today and what we are working on. Apart from the fact that we have sold the sensor through a number of different verticals out there, all from companies that work with electricians, large industrial companies, space companies as mentioned earlier, process, automotive, marine, not least, then our whole strategy is to work via partners, and we are making progress there. We have Consilium, which we have as an exclusive partner within the marine area, and where we have now seen progress with supply orders. We have a letter of intent from a company called Hydra Specma, who are specialists and very good at connections, where you should transfer liquids and gases from, for example, one equipment to another. And these are of course important points where both leakage can occur, but here is also a great advantage if they, for example, can make sure that our sensor fits into their equipment. We also have a letter of intent with SAAB within the flight area, something we announced earlier and where the work is going fast as well. And then, of course, we have a number of other ongoing discussions, partly with a little more pure distributors, but also the development of strategic partners within certain segments, for example, within hydrogen fueling, which we look forward to presenting more news about in the future. On the way forward, it looks like we have said that it should do, we continue to sell our sensors. We sell directly in the end, quite often, but we sell more and more via partners and that's how we see that it will become more and more in the future. ATEX certification, a very high priority. Now we are going to get it in place so that we are ready for larger volumes and we expect to be able to deliver ATEX certified sensors under Q4. Supply chain, it is in place, ready to scale up, as long as the volumes are there. And continued partnership, quite simply. It was extremely brief, I think, but I think that, Adam, you have probably loaded up with one or two other questions that we can dive into. I also hope that we get some questions from the audience and those who are with us.

That's right, Johan. We have some questions in the chat, so let's dive into that. As you mentioned, you are now close to the AT-certification, despite the smaller delay that you have communicated. How do you see the delay and, respectively, the unaltered certification? How has it affected your pipeline and ongoing customer dialogues?