Axolot Solutions Holding AB (publ) - Interim report January-March 2022

Summary of the first quarter 2022

Financially

• Net sales amounted to 528 tSEK (483 tSEK for the corresponding quarter in 2021), which refers to customer trial activities and studies.
• Other revenues were 1 tSEK (190), where the revenue in the comparison period relates to public research grants and project support.
• Earnings before interest and tax became -4 104 tSEK (-4 445).
• Net earnings per share amounted to -0,08 SEK (-0,10).
• Liquid funds were 8 773 tSEK at the end of the first quarter 2022. In order to enable continued expansion, it should be expected that Axolot Solutions will need new financing during the second half of 2022. The Board's judgement is that the prospects of finding financing are good.

Operationally

• Axolot launched AxoPur 2.0, a new and upgraded generation of the company's unique AxoPur technology. The new generation's system enables purification of substantially higher water flows at the same time as it gives a sharp reduction of the energy consumption. This opened up new market segments for Axolot, like for example municipal operations and process industries, with higher flows of sewer and process water.
• Axolot Solutions and Ahlström-Munksjö Aspa Bruk signed an agreement for extensive test activities aiming at reducing the phosphorus emissions from Aspa Bruk. The installation of an AxoPur system with a goal capacity of 30 m[3]/h has been going on during the first quarter, and trial runs have started in April.
• Agreements were also signed for trial activities with customers within surface treatment and in the oil industry. Other customer trials within different sectors continued, for example there were successful tests within the application vehicle washing.
• The development in Ukraine has led to increasing prices for construction material and system components, as also for consumption material and energy.

Key events during the first quarter 2022

• Axolot Solutions' agreement with Ahlström-Munksjö Aspa Bruk for extensive test activities aiming at reducing the phosphorus emissions was a key event for Axolot during the first quarter.

Key events after the end of the first quarter 2022

• The installation of a trial equipment with a goal capacity of 30 m[3]/h at Aspa Bruk was finalized in April, and trial runs have started.
• A notice of an Extraordinary General Meeting on May 5[th] was published in the beginning of April. The General Meeting will be held by advance voting. The main agenda items are proposed changes in the articles of association regarding the number of shares and the amount of share capital, as well as an authorization to the Board for the issue of shares. The Annual General Meeting will be held on June 1[st] and also this notice has been published in April.