Today's recorded meeting. Investors will be in listen-only mode. Questions are encouraged and can be submitted at any time, just using the Q&A tab situated on the right-hand side of your screen. Due to the significant attendance on today's call, the company will not be in a position to answer every question it receives during the meeting itself. However, the company can review your questions submitted and will publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company would be most grateful for your participation. I'd now like to hand over to CEO Lars Stegmann. Good morning.
Thank you very much. Good evening from Sydney. Good morning to London. My name is Lars Stegmann. I'm the CEO of CAP-XX. I'm more than three decades in the market of passive and power electronics. In my previous position, I was the Vice President and Managing Director at the company C&K, which had been successfully exited and acquired by Littelfuse. I'm very pleased and happy to drive this company to success and know CAP-XX more than one decade. Happy to let you know I'm here with our new interim CFO, Ariel Sivikofsky, which I'd like to hand over for introduction.
Thank you, Lars. Hi, my name's Ariel Sivikofsky. I've recently commenced as interim CFO with CAP-XX. I have over 15 years of CFO experience in listed and private equity markets. I have most recently worked in new tech and scale-ups, a Nasdaq-listed Bitcoin infrastructure provider, and also a decentralized data storage business. I am very excited in joining CAP-XX. Thank you, Lars.
Yes, thanks, Ariel. The content for today is we would like to drive you through the highlights from the first half of 2025, the distribution networks, our new partnership with SCHURTER, to give you more insights in our product application and markets to whom who are not so familiar with CAP-XX yet, and give you a small insight in the manufacturing of CAP-XX. I will hand over to Ariel during this presentation. He will take care about the financial highlights. In the end, I will wrap up with a summary of this presentation before we start the question and answer section. As you see, compare 2025 to the first year in 2024, we had been very successful. We could manage all challenges we had. The important message here is all these figures are without any contribution of SCHURTER or our new distributor, Digi-Key.
On the lower side, we want to give you an outlook for January 2025, which is the first month of the second half of 2025. With all in these months, we include the first shipment we made successful to SCHURTER, but there's no input at the moment from Digi-Key. With all these figures you see here on the screen, we would like to highlight we improve our reporting system. We try to meet the timeline and are happy to present this mid-February to you, to the market in London. Coming to the two partnerships, Digi-Key as a distributor and SCHURTER as a technology partner. We explained before the distributor, Digi-Key is located in the U.S. We are happy to have our own stock now located in the U.S. to serve the market in a better way. On the other hand, we have a second, let's say, partnership.
It's more a technology partnership. This is important. We serve SCHURTER in the first step with branded supercapacitors to serve the market. I will explain this a little bit more later, but give you more insight in Digi-Key. Digi-Key is an e-catalog distributor. We signed the contract as well as with TME in Poland. Both will help us to gain the market in a wide customer base, more than 100,000 customers they do serve in a daily business. They have stock in their local warehouse. More important is the middle segment. You see the local and regional distributors. We made a dramatic good job during the last 20 months to establish and expand these local distributors. They help us to bring these parts and design and face-to-face, sitting with engineers to engineers, and bring our parts into the new projects. They know the local customers.
They know exactly to whom to talk. This is a big help for us at CAP-XX to increase sales. On the high-volume global distributors, especially with Arrow and Avnet, we are working on a solution, and we are very confident, very confident to find here a way to access this segment in the near future. Coming to the relationship with SCHURTER, this is a technology partnership. It is not a distribution. You might hear this sometimes in the market. What we did, we signed the MoU. This is a base of trust. Everything based on the MoU we signed. It is so important to have this MoU signed. We already signed the commercial contract. This is done. Based on this commercial contract, we had been able, in a very short time of period, to make the first shipment in January. In the meanwhile, we did the second shipment in February.
You see that we continue to provide products, and we are in a close relation here, and we built the relationship, which is really a young relationship for us. At the moment, we're discussing an engineering contract, and this is even also one important part. As you see on the right-hand side, the product catalog, you will see a new product, supercapacitor, in the lower right-hand end of this table. We add a complete new technology to the existing product range. Out of this, and based with the engineering contract, we are able to work together and develop new products for the markets, for the market needs. To try through our products, I'm quite sure you're well aware of what we are doing and which market we are playing with our supercapacitors. This is our main focus at the moment, right?
We serve this market in prismatic supercapacitors or cylindrical supercapacitors for hybrid power or energy devices. Most likely, as of today, our customers use our products in mission-critical applications. We need to succeed. We need to perform. We are not allowed to fail. We are known for the lowest ESR in the market, which helps us and our sales guys, also our distribution partners, to make successful wins in design. If you ask me, we have the right product in the right place at the right time. Coming to the major market segment, we still focus on serving the automotive market, mobile devices, healthcare, and industrial as well as IoT segment. This helps us to balance the risk of our pipeline. If one market is maybe down, another market is stable or even in a growing mode.
This is important for all of us because this secures our future revenue in our segment. As you see on your own research, maybe you will find market analysis on the internet. I do not want to focus too much on the figures because there is a variation, huge variation in these figures. In principle, we choose this example with the cake shown on the left-hand side. The graphic on the left-hand side, the markets which they mentioned, automotive, transportation, industrial, electronics, energy, and power. These are all segments where we started in the last 24 months to get into the market, to gain ground, to make design earns, to work closer with our customers. If you look on the right-hand side on the pie chart and the dark purple one, this shows the technology.
The technology is the EDLC technology, which has a strong growth in this table. The EDLC technology is a core technology, and this is important for CAP-XX. Right product at the right time and the right place. To give you an outlook on our manufacturing, we work on a 3,400 square meters in Seven Hills. Seven Hills is a little bit outside of Sydney. It is absolute state-of-the-art manufacturing. We are accredited in ISO 9001 and ISO 14001. The good news is, one year ago from LinkedIn, we are recertified with ISO 14001, which we have not announced on Monday. We requalified on ISO 9001 again. This shows, again, we keep to this kind of level. This helps to build trust. This helps to build quality products with a clear review on our production scaling. We still have, and this is the truth, spare capacity of 60%.
We work currently on an extended single shift. That means we start a little bit earlier, we finish a little bit later, but this helps to keep the cost under control but increase the output of our products. As you know, as we mentioned all the time, we work with third parties in Asia, one in Malaysia, and in China. The CAP-XX business we work with, this gives us an unlimited scale of production. This is one of the key legs how we are able to drive and grow this business as well. Coming to the financial highlights, as mentioned, I would like to hand over to Ariel. Ariel, please, your turn.
Thank you, Lars. The next four slides will summarize the recently released financial results, including the unaudited interim report and half-year results market announcement. This first slide details a change in revenue over half-year periods and a snapshot of our January trading performance. The top-line revenue has increased by 6.8% year-on-year. However, this has slightly been put on the back foot because we've been concentrating on cost reduction and partnership development. Regarding our January trading result, first, I'm proud to be, that's okay, to be able to disclose not only our half-year results at this stage, but also our January trading results soon after its close. As Lars has mentioned, the January results include our initial shipment to SCHURTER. However, the results do not include any Digi-Key trading. Next slide. Okay, thank you.
This slide details the first half revenue analysis in two ways, by geographical region and product mix, as you can see. We have experienced strong growth in the APAC region, however, slight decreases in both EMEA and the Americas. You can also see that the decline in EMEA coincides with a slight decrease in prismatic product sales. The APAC sales are underpinned by the increase in sales of the cylindrical products. Additionally, we have a strong backlog as at 31 December, and this has continued in January. This next slide details, importantly, year-on-year revenue and EBITDA analysis. Yes, sales have increased by 11%, but I guess the most important part of this slide is the reduction in losses. We have been successful in reducing the restructuring operating costs. That is what we've been concentrating on, and I think that's key to this slide.
That's the most important part of this slide. Let's talk about cash and cash burn. I think the most important thing for me as a financial steward of the company is cash and cash burn. This slide details the cash bridge from the commencement of the year to the seven months ending January 2025. It details funds raised from the capital raise, the net receipts from the R&D tax application, and the incurring of non-recurring restructuring costs. It also details the operating cash burn of roughly just over AUD 2 million over seven months, resulting in a very healthy balance of AUD 5 million. We have received a number of questions regarding cash and cash burn, cash management, and whether we will return to the capital markets.
We will address those questions in the next section, but we believe that we have cash reserves combined with the continued reduction in operating costs, continued revenue growth, and the focus on partnerships to reach cash flow break-even. Thank you, Lars.
Thank you, Ariel. As you see, we talk about a complete new CAP-XX. Let's call it CAP-XX 2.0. We are in a process of transformation. The last 20-24 months, we did successful this transformation. You find a new executive team here on the picture. New board members are announced, strong new partnerships, and furthermore to come, so stay tuned. All these have happened in a very challenging market at the moment. You know that better than us what's happened. We are very positive with these results and with the reaction from the market to start in the second half of fiscal year 2025. We are happy to take any questions and answers during our session now.
That's great. Lars, Ariel, thank you very much for updating investors. Ladies, gentlemen, you can continue to submit your questions. You're choosing the Q&A tab situated on the right-hand corner of your screen. Just to remind you that the recording of this presentation, along with a copy of the slides and the published Q&A, will be available via your Investor Meet Company dashboard. Lars, Ariel, let's get straight into it. We did receive a lot of questions before today's event, and you've received a number throughout today's event. Thank you to everybody for your engagement. Perhaps we can start maybe firstly around funding. Your aim is to break even and eventually become profitable. Do you have a plan on how you're going to achieve this? Can you share that with investors, please? Thank you.
I'll take this question.
Yes. Look, the plan to break even is the same as any company, moving from a cash burn to cash flow break-even, as I've mentioned in the cash flow slide. It's about increasing sales. It's reducing costs. It's also increasing margins. I guess once we generate free cash flow, we can concentrate then on expanding sales, expanding the sales team, investing in equipment, and driving the business operations forward. Most importantly, in achieving, I think, cash flow break-even, we have announced 30% cost reduction in the prior year. We have announced distribution agreements and partnerships that will drive future sales. We have strong margins to underpin that.
Great. Thank you. Let's turn to another question we received. Does CAP-XX have sufficient capacity to become a profitable company, or will further capital be required?
I guess that, like I mentioned earlier, at this time, CAP-XX has sufficient cash reserves, operational capacity to reach cash flow break-even, and become a profitable company. However, as we continue on this path, new opportunities may arise that may accelerate growth or enhance our market position. In such cases, we would only consider raising additional capital if there was a compelling strategic rationale and could be delivered significant value to the business and the shareholders.
Thanks, Ariel. Maybe just sticking with that, there were two huge placings that were completed last year, and I think sentiment perhaps is currently low. Is it anticipated that another raise will be needed this year to meet the needs of the business?
Yeah. Look, I think I addressed that, but we're recognizing investor concerns following last year's placings and remain focused on driving growth and reducing operating costs. While we continue to assess our financial position, our goal is to manage our operations efficiently and work towards, I guess, profitability. Any potential capital raise would be carefully, I think, evaluated based on business needs and market conditions.
Okay.
Sorry. Lastly, I don't think we anticipate any raise in the next calendar year.
That's great. Thank you. I guess one final question while we're on the topic of funding. Question here around cash burn. With cash burn of around AUD 400,000 per month, the company has enough reserves for just over a year. Can we conclude that another placing will be required to bridge the gap to profitability? I know it's the same theme, but.
Yeah. Yeah. Something similar. Look, we're working towards reducing our cash burn further to a cash flow break-even position, with our focus, like I said, remaining driving revenue growth and cost efficiency to reach profitability. Thank you.
Great. Thank you. Lars, perhaps I could just turn to you for a few shorter questions. Was the first shipment of SCHURTER just samples, or was it a batch of products to sell?
Yeah. Listen, to create partnership and to build up all these documents and technical details, this sample shipment's already done in the first half of 2025. We are already on the stage. The first shipment was announced was the first batch, the first batch of prismatic supercapacitors.
Thank you. Are the SCPA, SCPB, and SCPC the only co-branded product lines to be revealed this year, or can we expect to hear more?
We work to expand these, and this is part of this relationship to get deeper into technology, to find new products together. That is why the engineering contract is under evaluation. Based on the commercial contracts, we are focused on these three segments at the moment. Of course, we hope we will receive further bookings and billings here as well.
Sure. Sure. Great. Does SCHURTER pay for capacity shipments, or does CAP-XX send them at their own expense and receive a revenue share?
Our key role is we ship ex works. That means SCHURTER takes care about their shipments.
Okay. Just taking to the next question. Are the supercapacitors that CAP-XX are sending to SCHURTER the same capacitors that CAP-XX currently have, like the DMV, DMH, DMF, or are they completely new supercapacitors?
Listen, as we said, this cooperation and the shipment is based on branded products. Branded products, it means it's similar products than we do have in CAP-XX, but mentioned with the logo and branded with a logo of SCHURTER with their part number, but stays with the technical details.
Thank you. Trying to butch these all together. Is the partnership with SCHURTER based on a revenue share or a licensing model?
Yeah. You know, we made our experience with licensing module in the past before my time. We stopped this. I transferred this company and product sales and revenue. So, it's a sales on revenue.
Thank you.
With other words, SCHURTER buys this part.
Great. Thank you. Why does CAP-XX never include the revenue value of a contract or, sorry, revenue value of a contract win or shipments in their RNSs?
Most of this information is confidential, highly confidential, and we need to respect this. Also, we need to be careful to give sensitive information to the market.
Great. Thank you. I guess finally, Lars, under this section, has Graham Cooley expressed interest in getting CAP-XX any hydrogen fuel cell partners to combine supercapacitors with?
No, not yet, to put it this way. We have currently other priorities. We clearly focus on also new technology, which includes battery technologies, but clearly not at the moment on hydrogen.
I might just stick with you if I may, Lars, as we just transition into design. CAP-XX say that design ins take 12-18 months. Can we get any indication of how many design ins are currently in progress or the total value of them? Can we expect the results of some of these before June 2025?
This is a very good question. If you remember, I started this job more than 20 months ago, and this is exactly the kind of development to design in new projects to win new customers and products. We are exactly in this period of 12-18 months, maybe sometimes 20 months. These exactly reflect the revenue growth, which you see at the moment in the market. Yes, of course, we are in the middle of February, and of course, we do expect further revenue until June 2025.
Great. Thank you. Sticking with the theme, are there any data center or power station renewable energy or electric vehicle design ins taking place within the current pipeline?
Short answer, yes.
Great. Thank you. Maybe just one final question for you, Lars, before we turn on to Ariel with strategy. When can we expect CAP-XX website to get a modern makeover and, I guess, a more inspiring design? There's one for you, Lars.
Yeah. Thanks. You know, this is one of my hard projects still on my table. What we need to respect step by step, we should not overtake ourselves. Yes, we're working on that. Yes, stay tuned. In the near future, in the next couple of months, we hope to proceed here and close this project.
Great. Thank you. Look, let's just move over to strategy, if we may. Ariel, maybe a couple of questions for you, if I may. In your opinion, what are the three most exciting things that CAP-XX investors should be focusing on?
Okay. Look, three exciting things, I would say. Great products in a rapidly growing market driven by high-quality partnerships.
Great. Thank you. I guess a follow-on to that, what is the current strategy for the company? Is there a strategy for improving communication and perhaps therefore sentiment in the market?
Look, as mentioned, our strategy remains centered on driving revenue growth through new customer acquisitions, expanding our commercial partnerships, scaling our production efficiency to achieve profitability. We're also focused on cost optimization, operational improvements to extend our cash runway. Look, regarding communication and sentiment, we recognize the importance of keeping investors informed. We are committed to providing regular updates on key milestones, commercial progress, our financial performance to enhance transparency and investor confidence, I believe.
Great. Thank you very much indeed. I guess one final question in strategy, maybe Lars one for you. The current strategy seems to be to expand the business through global region new products. Is there any interest for a company sale? Would the board be open to that?
Our primary focus, and this is where we put all our energy at the moment, is to execute our growth in the market and to execute this strategy to make this happen. At the moment, we are not focused on any other activities to sell this company or do, let's say, other things.
Thank you. I can see loads of questions coming in from Steve, from Chris, from Adrian, from Frank. Thank you very much. We are going to progress through these questions as rapidly as we can. Maybe let's just switch gears slightly and go to manufacturing and maybe capacity. Maybe this is one for both of you, I guess. Investors want to know how big an order CAP-XX could fulfill. At full capacity, how many capacitors would CAP-XX manufacture per week? Is it tens of thousands, hundreds of thousands, millions? Maybe you guys could give us a little bit of color on that.
Sure. Look, we'd estimate or approximately at full capacity, we'd probably produce about 100,000 pieces per week. Yeah. Yeah. Also keep in mind, as mentioned in the presentation and former interviews, we have unlimited scale in Asia with our can business. We are not limited to these numbers in Seven Hills.
Great. Thank you. Guys, I guess you wouldn't be surprised if there wasn't an investor presentation where there weren't questions around share price. Maybe let's deal with that while we're here. Many of us have held shares for a number of years, as we can see the opportunity here. When can we expect some really great news to lift the share price to a position where it should be?
Okay. I'll answer this one.
Yep.
I guess CAP-XX is not a trader's stock. It's a long-term investment with strong fundamentals. We understand that investors are eager to see the share price reflect the company's potential. We firmly believe that our continued progress will drive long-term value. Look, that's reflected over the past year. We have made significant strides, including key partnerships with Digi-Key and SCHURTER. Our focus remains on building a strong and sustainable business, not short-term share price movements, I guess. To add, we don't dwell on the share price. What we focus on is probably working hard to develop an important technology business. I think the true value of the shares will ultimately reveal itself.
Great. Thank you. Look, that share price out of the way, let's turn to your IP. When do you expect the two patents to be granted? Can competitors catch up in the meantime, do you think?
I would take this. You know, our R&D team is busy and in close communication with, first, all our lawyers, and we need to respect the process. We are very confident and expecting to file in the selected jurisdiction and bring this to success. Also, here, please stay tuned. We keep you informed. Everything looks good at the moment. To answer the second part of your question, no competition can't catch up here as the patents priority the dates already with the application.
Great. Thank you so much. Okay. Maybe a good thing to maybe crack on to is technology and product. Number of questions around this. What exactly is the status with SMT as it went from being evaluated by major customers in the end of the year results to being contingent on achieving milestones at the AGM?
We are working hard to get this product in production. We need to respect also here the kind of development time, especially the testing time, which eats the most of the time what we, let's say, need to respect. Principal, all is done. All the product is defined. As said, we are in the testing process, and we proceed here also to fulfill our strategy to bring this in the market as soon as possible.
Maybe a couple more questions just for you, Lars, around strategy. Perhaps if we can just continue with that. When do you anticipate securing high-volume SMT orders?
First of all, this would be also confidential, but if we get into this business successful, it will end up automatically in a high-volume business. We are already in a testing phase and talk to huge EMS companies who test our products on their reflow oven, very successful. We are quite confident to be successful soon here.
Great. Thank you. I think finally, one question, Lars, on technology and product. Following on from the cylindrical SMD product, how is the prismatic version developing?
Yes, this is ongoing. We don't skip the prismatics. We have a huge background, a huge knowledge on prismatic supercapacitors. Remember, CAP-XX is more than 20 years in the market, and the first product where this company started with was prismatic supercapacitors. Yes, we will continue to develop here our product portfolio. On top of this, and this is another product family, we'll build the cylindric SMT supercapacitor version.
That's great. Thank you. Ariel, maybe we can just turn to you, give Lars a little break from technology, and let's move on to market sales and the pipeline. For a company that claims to be a world leader in a growth market, how do you explain CAP-XX sales of around 0.001% of the available market revenue, and what percentage of revenue are you realistically targeting in what time frame as achieving 1% will be transformational? A lot there, but maybe you could give us your thoughts.
Okay. I guess achieving market share is about demonstrating your products, developing the right price point, having a strong relationship both technologically and manufacturing, and also market access to distributors. I think we're achieving all of these things.
Thanks. I think this one might be for you, Lars, if I may. When are you going to provide a forecast? There must be a business plan, I guess, in place that you'll be targeting to achieve to deliver on that plan.
Yeah, absolutely. You are totally right. We do have a business plan. We do have our own process and also our own forecast. This is all internal figures. If you remember, and the investors may remember very well, before my time, years over years, the company announced forecasts but never met these forecasts. We try to avoid this situation at the moment. The last 20 months and the couple of months needed, I need to learn more to get about some CAP-XX and how to handle our figures. For sure, at a certain moment, we will come out with any kind of information for forecasts. We ask for your patience. Do not expect this during fiscal year 2025.
Thank you. I'll read this question out directly as it's come from an investor on the call. There we are. What has happened to the projects in the $90 million pipeline that was reduced to $9 million? Were they fictitious, or are some still being worked on? I thought I'd read it as it has been put to us. Over to you guys.
Look, we believe and are confident that the $9 million in sales is achievable. Pipelines tend to have a risk associated with them, and you can either articulate a large pipeline that has a high level of risk, or you can risk-weight the pipeline. We believe the $9 million in sales in the pipeline is risk-weighted and achievable by CAP-XX.
Great. Thank you. I'm trying to be fair and share these questions amongst you. Maybe, Lars, I can come back to you around partnerships. Has CAP-XX sent any shipments to the South African Smart Meter contract yet? If not, when will they be?
No. Good question and fair question. We announced on LinkedIn that we signed this important and significant contract for CAP-XX in the region of South Africa. We successfully delivered already four shipments in that region, further to come. Yes, we start with shipments, and we would not announce anything if it would not be a real project in our hands.
Okay. Thank you. I guess maybe if I may, Lars, just continue along that theme and stick with you. Are you still looking for more distributors of CAP-XX products, or do you feel that you have sufficient in order to see CAP-XX through to becoming a very profitable business?
The main aim is to bring and turn this company into a profitable business. All distributors who are on contract now and signed contracts in the market, we need to develop, of course, but they all made the first progress, positive progress. If there is a distributor we are able to add on, we will continue with that. We are still in discussion with some in the market, and hopefully, we will get out with some good news in the next coming week. Stay tuned also here. We are really focused on getting partners on the street, helping us for design and helping us in sales. We need to make sure that they get the parts in time and to their customer.
Thank you, Lars. Ariel, let's switch over to you, I guess, around forecasting. CAP-XX has all the markers of a success story. However, it seems a little—it seems like hiring marketing and sales teams to take CAP-XX to new heights has been difficult. Does CAP-XX feel there is a shortage of skilled sales and marketing talent? Maybe you could just give a little bit of color around that.
Yeah. Look, CAP-XX's business model is not necessarily a sales model. CAP-XX's business model is a product development, manufacturing, distributor model, and developing channels to market like we have done with Digi-Key and SCHURTER.
Great. Thank you. Look, let's move on to finance. Ariel, I think for you as well, if I may. A number of questions here. Have all legal costs now been settled, or will there still be some losses in the second half-year numbers? I guess the same question around restructuring costs.
Okay. I think we've disclosed quite clearly in our financials previously and this time around, and I think in our presentation, all legal costs and actions have now been settled. Look, it is anticipated that restructuring has been completed. However, we continue to focus on our strategy and our long-term growth.
Great. Thank you. Another one for you, Ariel, I guess, around cash burn. What is the cash burn rate, and can you provide an estimate of how long current cash reserves are likely to last?
Yeah. Look, I think I mentioned this in the slides and also in a previous question, but we continuously monitor our cash burn rate to optimize operations and extend our cash runway, I guess. Whilst specific figures depend on revenue and cost fluctuations, we estimate that our current cash reserves will support our operations for probably the next 24 months based on the current burn rate. We remain focused, again, on strategic cost management and revenue growth to strengthen our financial position and our cash runway, as I mentioned in the cash burn and cash bridge slide.
Thank you. Maybe one last for you to wrap up on finance, if it's okay. Have CAP-XX managed to bring cost of production under the price of products yet?
Fair question. If you follow our RNS announcement, our announcement on LinkedIn, we clearly show that we are profitable. Our margin is plus 35%, and we need to continue to improve this, of course, and this is a willingness. Yes, we are already there.
Great. Thank you. I think maybe the next question is for both of you around the new team. The question reads as follows: How does Ariel, the new CFO, plan to drastically upgrade CAP-XX's cash flow management, financial planning, and analysis and budgeting? CAP-XX has been loss-making for 26, 27 years. How does Ariel plan to turn that around fast this year?
As we mentioned in the introduction round, Ariel brings a huge experience with him. He worked in different kinds of market segments, and he knows both sides of the table, also the auditor side as well as the manufacturing side. Especially, we really highly value his experience in small companies and build these up and make the turnaround happen. These are the key messages to our investors. We do have the right people on board. Ariel, maybe you explain yourself a little bit more. Thanks, Lars. Look, great to be here with the company. It's a great opportunity. I've met the board, obviously, through the recruitment process. I really believe in its pathway. I've embraced the energy storage market. Look, it's a fantastic company with amazing products and amazing future R&D. I guess Lars touched on it a bit about my background.
I cut my teeth in the Big Four in audit and progressed through financial controlling in the funds management and investment banking, and most recently in the new tech space. Look, I'm passionate about this opportunity, and it's great to be here.
Thank you. I guess looking forward, I guess, news flow-wise, and I guess quite a number of questions investors are asking. What updates can investors look forward to hearing in the first half of this year?
Okay. In the first half of the calendar year, I guess investors can expect updates on key commercial partnerships, progress in scaling production, new customer wins, revenue growth initiatives. We'll probably look to provide insights into cost optimization efforts, like I've mentioned, potential product developments, and yeah, any strategic steps taken to strengthen our financial position.
Thank you. I guess sticking with maybe what's coming forward, Dr. Graham Cooley indicated perhaps that there would be some exciting news flow in 2025. I would assume exciting means almost like big contracts. So far, we haven't seen anything. When will CAP-XX start to win the big orders? I don't know, Lars, maybe one for you?
Yeah. Thanks. Happy to take this. Listen, to say so far there's nothing, it's clearly not true because otherwise we couldn't show any growth during the last 22 months. Our job, or my job, is to convert this company into a professional, let's say, profitable company, which reminds us to focus to convert our projects in our pipeline into business, into sales. We continue here heavily and proceed with this process. We gain ground. We have success into the market. In the meanwhile, we also could build trust and customer, let's say, yeah, they gave us the order, so they gave us trust back.
Great. Thank you. We have covered a lot of topics from funding to design to share price to IP and strategy. I guess one of the topics that we haven't really talked about is around billings and bookings. January billings are around $320,000 annualized this year, so around $3.8 million. This doesn't seem to be like progress. Is this because January is typically a slow month, and can we expect, I guess, sales to pick up substantially in later months?
Yeah. Happy that this answer comes up because most of the time I live in the same time zone that you are in London. The December and January months, especially January, it's a high summer break here in Australia. We need to respect this if we do have our summer break in June, July, August. Here, the summer break starts December, January, and maybe partially from February. Yeah, to answer this short, it's a typical, it's a slower month, January. Yeah, we could expect more, but it's not. I mean, we need to respect the market on this case, right?
Of course. Of course. Should we be concerned that the book to bill has come down under 1 to 0.88?
No, no, no. This is still a healthy measurement. This parameter, this corridor, 0.8-1.14, these are really healthy indicators. It did not show any risk or any indication that something goes in the wrong direction. What happened in these specific months, which are mentioned here on this question, is January 2025. This was a month where we had been able to ship a higher volume also because of the first shipment to SCHURTER. Please keep in mind we finished the first shipment. Maybe a more moderate, not less, because we are higher than the January 2024 bookings. It is not less booking, but the shipments simply was, the amount was higher than the bookings.
Got it. Got it. Thank you. Do the January bookings and/or billings include stock delivered to SCHURTER or Digi-Key? Could you just clarify that?
Yeah. As mentioned in our report and LinkedIn as well here in this presentation, I think we touched this point. Yes, of course. It's bookings, billings from SCHURTER, and bookings, of course, from Digi-Key, but no billings yet.
Lars, maybe one final question on billings. Billings are usually lower than bookings. What is going on with the figures for January? Are they higher?
Yeah. As mentioned before, this is a monthly January effect. In this month, the shipment had been higher than our intake in bookings. We try hard to turn this around in the right direction, but it's nothing endangerous with 0.88.
That's great. Lars, Ariel, we've taken just around 50 questions. You've given an 18-slide deck presentation. Thank you to everybody for your engagement, to Steen, to Jamie, to Chris, all for your questions that have come through. I hope the nearly 50 questions that the guys have answered have covered some of the topics and themes that were in some of your questions as well that maybe we haven't read out exactly. Thank you once again for your engagement. Lars, Steen, thank you for your time. I know you're in Australia. It's probably 9:00 or something. Thank you for giving investors your time this morning here in London.
Before I redirect investors to give you their feedback, which I know will be particularly important to you both, Lars, I just wondered if I could just ask you for a couple of closing comments just to wrap up with, and then I'll send investors to give you their feedback.
Yeah. Thanks, Sonia, for joining this interim presentation. We really appreciate. As you see, we take any hints and comments seriously in the market. We put this meeting, or we place this meeting on a recent time for London. Not so nice for us here in Sydney, but no problem. We are happy to serve the market, to serve our investor with the right information. Stay close to us. Our main communication channel at the moment is LinkedIn or the R&S on the London Stock Exchange market. We will not consider any other channels at the moment. One of the reasons is also to keep our resources under control, and to keep the resources under control means also the cost under control. Please stay tuned. We will come up with further, hopefully further good and new information, new news, exciting news back to you very soon.
We keep you updated regular. I try to be more often in London, so there might be very regular possibilities in the future to meet with me face to face if you wish to do so. Thank you very much for your contribution.
That's great. We welcome you to a rainy, grim London whenever you like from us, sunny Australia. Lars, Ariel, thank you very much for your time. If I could please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order that management can really better understand your views and expectations. This may take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of CAP-XX Limited, we'd like to thank you for attending today's presentation and wish you a very good evening in Australia and a good morning to you in London. Thank you.