Business model
Cell Impact’s offering includes advanced design services for flow plates, tool design, prototype series and production of flow plates at larger volumes as well as sales of our proprietary forming machine and subsequent process steps. This creates five potential revenue streams:
- Project revenue
- Sales of tools and prototypes
- Sales of flow plates
- Sales of forming and cutting machinery
- License revenue from local production
The primary source of revenue over time should be income from the manufacturing and sale of customized flow plates. To enable large-scale production, Cell Impact has invested in developing process steps that increase productivity and profitability. This has resulted in increased capacity and a higher degree of automation. We can now scale up production when demand is sufficiently high. These investments have also led to increased cost-efficiency, more stable production and higher-quality flow plates, resulting in a high grade of utilization at a low production cost. Altogether, this is expected to increase revenue from the sale of flow plates as well as the share of total revenue attributable to these sales.
Cell Impact’s expertise in design, processes and production allows the company to support customers in developing flow plates that are easier to manufacture, with higher and more consistent quality.
All projects involving the development of customized flow plates include the sale of tools, fixtures and prototypes, which are a part of the development process and generate revenue. Essentially all customer projects follow the same phases: projects often start with manufacturing smaller test tools and prototype plates, which are then replaced by regular forming tools and test production of flow plates before the project transitions into continuous large- or small-scale manufacturing. The entire process, from the start of a potential project to continuous production, can take three to five years.
In some cases, in markets where it is more challenging to establish its own operations, Cell Impact may enter into partnerships with buyers of flow plates and sell production equipment. This generates license revenue and additional revenue from services, tools and prototypes. Cell Impact’s technology can also be applied in other contexts where forming and cutting technologies are required processes. What makes the technology desirable is that it can handle materials more quickly and more efficiently than other techniques. After cutting, the material can also be given particularly desirable properties.