Interim Report January – September 2020

ChromoGenics conducts a preferential share issue for accelerated growth

Third quarter of 2020

  • Net sales for the period amounted to SEK 3.5 (14.0) million, and earnings amounted to SEK -15.1 (-20.0) million, which corresponds to earnings per share of SEK -2.14 (-7.14) after the 1:100 consolidation of shares.
  • ChromoGenics continued to be impacted by the coronavirus pandemic during the second and third quarters, which resulted in delayed orders from the company’s customers. Order intake and invoicing were adjusted in 2020. Net sales for the current year are therefore expected to be lower than the outcome in 2019. An action plan that aimed to reduce the company’s running costs was started at the beginning of April. The cost savings have had the greatest impact in the third quarter. The plan entailed the termination of around ten positions as per June 30 and a furlough program during Q2 2020 with work hours reduced to 40 percent for 70 percent of the staff. The installation of our sputter machines proved to require more time from our in-house staff since our external consultants were called home. The furlough program was therefore terminated in advance since it was not possible to comply with the regulations.
  • Operating profit amounted to SEK -14.4 (-19.4) million, which is an improvement of SEK 5.0 million compared to the corresponding period in 2019.
  • Cash and cash equivalents amounted to SEK 21.3 (48.2) million on September 30, 2020.
  • Two machines for advanced surface coating (sputtering machines) have been installed in the company’s premises in Uppsala and are fundamental for the future operations. Ongoing work is focused on verifying, adjusting and fine-tuning the manufacturing process and its accompanying control system. This work is in full swing and progressing in accordance with our schedule.  
  • On August 17, Jerker Lundgren stepped down as CEO, and Leif Ljungqvist was named the new CEO of ChromoGenics.
  • The record date for the 1:100 reverse share split, through which one hundred shares were consolidated into one share, was August 18. Through the reverse split, the number of shares decreased from 707,334,237 to 7,073,343. 
  • During Q3, orders of SEK 1.4 million were received from Klockstapeln in Gävle, Humlegården in Solna, and others. Order volume for Q4 2020 amounts to SEK 5.4 (16.9) million.
2020 2019   2020 2019   2019
SEK million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
Net sales 3,5 14,0 12,6 23,2 45,2
EBITDA -13,1 -17,4 -44,2 -46,6 -67,0
Net income -15,1 -20,0 -53,5 -54,6 -77,9
EPS before dilution, SEK -2,14 -7,14 -9,65 -19,49 -33,83
EPS after dilution, SEK -2,14 -7,14 -9,65 -19,49 -33,83
Cash and bank end of the period 21,3 48,2 21,3 48,2 24,9


Events after the end of the period

  • On October 23, ChromoGenics’ Board of Directors decided to repay to the Swedish Agency for Economic and Regional Growth the furlough subsidy of SEK 2.4 million that the company had received since the company’s installation and adjustment program is a priority and key staff could therefore not be kept on furlough. The company’s liquidity was negatively affected by SEK 2.4 million. 

  • On October 28, ChromoGenics was granted a deferment for its repayment obligation of conditional loans to the Swedish Energy Agency until October 1, 2022. It is assessed that this will entail liquidity relief of more than SEK 10 million for ChromoGenics. 
  • On November 6, ChromoGenics’ Board of Directors decided pursuant to the authorization granted by the Annual General Meeting on May 14, 2020, to conduct an issue of units, consisting of shares and warrants, with a preferential right for existing shareholders. A preferential share issue that is fully guaranteed will contribute to ChromoGenics around SEK 94.1 million before issue expenses.
  • An order of approximately of SEK 1 million regarding Ortun Skole in Norway with delivery Q2 2021 was received on November 10.


Comments from the CEO

ChromoGenics is conducting a unit issue consisting of shares and warrants with preferential rights for existing shareholders that will raise SEK 94.1 million before issue expenses. The issue is fully guaranteed with subscription during the period November 25 – December 9. The unit issue’s warrants carry the right to subscribe to shares in ChromoGenics with an additional maximum of SEK 34.0 million prior to the issue costs during two redemption periods, September 2021 and March 2022.

The raised capital will allow ChromoGenics to develop the company’s dynamic products and create conditions for generating net sales that will lead to positive cash flow in the future. The money raised from the issue will primarily be used for

  • satisfactory product quality in the dynamic products.

  • enhanced marketing work with a focus on our home market in the Nordics.

  • planning to establish a hub that serves as a model for how the company’s product, electrochromic film, will be distributed globally.

  • approaching the existing market for sputtered film in order to fill the overcapacity that the company currently has its two sputter machines.

All measures aim to transform the company into a commercial industrial firm.

A condition for meeting our customers’ demand for the dynamic products is that we have a stable product of good quality. One of the keys for a functional product is that the sputtered films are stable. After investing in and installing in-house capacity for producing sputtered electrochromic film, the company is now in an intense process-development stage. The aim is to produce one film with tungsten oxide and another with nickel oxide. We are currently on schedule for the development of this process. We have already achieved excellent results in the development of tungsten oxide, and we expect to have a stable process in November. We have started the development process for nickel oxide. This process is scheduled for completion in December 2020. We aim to increase the pace and focus in all development processes in the future.

Tests of laminated films that are encased in glass are progressing parallel to the process development. These tests have two objectives: to provide feedback to the process that is being developed in the sputterers and, through forced testing, to control the product’s stability over a long period of time. The feedback to the sputter process occurs on a daily basis. The long-term stability takes more time. One of the two tests that are being conducted that gives a good overview of the product takes around 30 days. The other test takes around 90 days. The tests provide a good control of the product’s sustainability over a long period of time. These tests are followed up daily.

Based on the current schedule for the company’s process development for sputtered material and test procedures for glass entail, we will be able to deliver products based on the in-house sputtering capacity in Q2 2021.

ChromoGenics’ order backlog amounted to SEK 5.4 million at the end of Q3. This backlog has accumulated mainly because we have not had dynamic products that we can deliver. Sales are continuing with undiminished efforts, and despite the quality problems the company has had we are meeting strong interest from our customers for our products ConverLight® Dynamic, ConverLight® Static and ConverLight® Energy. The focus of our sales is to sell Static and Energy products with shorter lead times and Dynamic products with delivery at the end of 2021 and the beginning of 2022. Thanks to the efforts of our sales staff, we currently are in discussions with customers for an expected close on orders within six months of just over SEK 50 million. The majority of these discussions refer to the dynamic products, but there is also a growing interest in Energy.

We have also begun to approach the market for sputtered material. We are currently in contact with potential customers in the electronics and medical technology sectors. This is occurring at the same time as we are installing the second sputter machine for this purpose. The installation of Sputter II is expected to be completed in Q1 2021. The intention is then to establish a process that suits one of the potential customers with whom we are in discussions.

Leif Ljungqvist, CEO

Leif Ljungqvist, CEO
Tel: +46 (0)70 594 94 01

Lars Ericsson, CFO and Head of Communications
Tel: +46 (0)18 430 0430

This information constitutes such information that ChromoGenics AB (publ) is obligated to disclose in accordance with the EU Market Abuse Regulation. The information was submitted by the above-mentioned contact persons for publication on November 13, 2020, at 08:30 CET.

This statement has been made in a Swedish and English version. In the event of any discrepancies between the Swedish and English text, the Swedish text shall prevail.

About ChromoGenics
ChromoGenics offers dynamic glass with controllable heat- and light transmission and static glass with world leading performance. The company’s unique technology ConverLight® provides sustainable solar control for increased indoor comfort and energy efficiency. ConverLight also contributes to Green Building certifications. In 2016 the company started commercial sales to real estate projects in Scandinavia.

ChromoGenics is located in Uppsala, Sweden, and the technology is derived from the world leading research center at Ångström Laboratory at Uppsala University. The plant has been partly financed by a conditional loan from the Swedish Energy Agency. ChromoGenics share (CHRO) is listed on Nasdaq First North Growth Market with Erik Penser Bank as Certified Adviser, e-mail:, tel.: +46 (0) 8 463 83 00.



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