AnteoTech's investor update following the release of the full-year results yesterday to the ASX and the investor presentation released on the ASX platform this morning. From the company today, I have the newly appointed Managing Director and CEO, Merrill Gray, who will go through the presentation up on your screen. Just a reminder, if you did want to ask a question, please submit it through the Q&A button at the bottom of your screen, and we'll endeavour to get through as many of those as possible. With that, Merrill, I'll hand it over to you. Thank you.
Thank you, Simon. Welcome to you all to AnteoTech's End of Financial Year 2025 Investor Update. I'm proud and excited to be here today, having been formally appointed as MD/CEO during the month. The last time you saw me, I was about 10 days into the interim role, and since then, it has been very busy, I can assure you of that. We've had, of course, the strategic review released, where we underwent a restructure and took costs out of the business of around $1.6 million. We've had a very, very strong and serious focus on cash management with an ongoing corporate cost reduction program, and we accelerated our R&D tax rebate return of $2.6 million. I thank the team for all of the effort that went into that. As part of moving forward, we have changed the way we go to market.
It's been pretty substantial, and we've got more work to do on our journey, but greater segmentation of our markets, greater productization, and you will have all seen that through the Ultranode, stepping out the different Ultranode formulation technologies that we have. We've updated our collateral. You will have also seen that through the white paper for the Life Sciences business unit that's on our website, and we are working on a similar document for our batteries business. All of this has been part of a culture shift for us to move towards being a much more commercial, sales-oriented company. We've got a new CRM going in, and that will help us to continue on that journey. The one thing is that we have done, and we're continuing to do, what we said we would do. We have entered new markets, the U.S. market and South Korea.
We'll speak to you a bit more about that. We've continued, we are continuing to build where we've already got established markets. India obviously very strongly from a life sciences perspective, and Europe with our battery business. I didn't want to move into the ongoing role as MD/CEO until we had a really clear focus and plans in place and underway, and the team all working towards these. Really, that's where we are at. Over the past 12 weeks, the company has received significantly increased interest from customers, from potential partners, from potential strategic partners, and around new products. Overall, AnteoTech is on a better course and has a bright future ahead. Today, I've selected for you some key slides out of the slide pack that we released this morning. What I'll do is take you through that now and then take questions.
This is what I plan to cover with you. By way of a sort of starting point or recap for those who have been on this journey with us for a while, AnteoTech is a chemical and materials company with global reach and global sales. We have an expanding customer base, and we are in commercialisation and revenue stage as a company. Our expertise, what we really do, which everybody asks me, what is it that you actually focus on? What's your core competency? Our core competency lies in the application of chemicals, and they are cross-linking binders in patent-protected into a range of different industries. Our focus, of course, is life sciences and the batteries market.
What's really important about this is that we are able to get molecule to molecule, and in life science, bioconjugation is the term for that, and molecule to surface or substrate, very strong bonds on a molecular level. We're a team of 24, mainly based in Brisbane, and that comprises scientists, sales professionals, and commercial analysts. We're acknowledged, as I get out into the market and spend more time with customers and potential strategic partners, we are acknowledged as leaders in the areas that we're in. Specifically on the life sciences, again, just to close out the recap, what we do and what we offer through our AnteoBind and AnteoBind NXT products is we reduce customers' costs by reducing antibody usage and new tests and new test development. We also can reduce costs in manufacturing by improving the workflow and assay reproducibility.
What's really important here is, for example, at the Serum Institute of India, our product is used in quality control across very large batches of vaccines. What's also important on the life sciences side with our product is it can be very specific, highly specific, and sensitive, and that then allows in modern medicine, in the development of modern vaccines, for it to be used reproducibly and for key decisions about people going into manufacture to be made. On the battery side, with our AnteoX product, it improves high-silicon anode performance and, as a result, improves battery performance. We speak constantly to people about the next generation of batteries and where high silicon fits from a competitive advantage perspective around cost of production, performance, access to supply, raw materials, and availability of that globally, of the raw materials that we use, the silicon that we use.
We reduce the costs of other additives that can be added into the anode, including carbon nanotubes and binders. On the Ultranode, and I've got Ultranode X there, but as everyone knows, we have a range of Ultranode formulations. We work with very high-content silicon and target 30% increases in energy density. That's very significant, for example, in terms of extending driving range for electric vehicles for the same size battery pack. It can lead to us having smaller batteries or lighter batteries and faster charging, longer run times. In our strategic review, the blue is where we were already, the markets we were already in, and the pink is what we've extended now. That's been on a very targeted basis. In India, our major client is Serum Institute of India, and we continue to work with the Serum Institute of India.
We are using, we've been accepted into the export growth programme by Oztrade. We will be using Oztrade, and we're already working with Trade Investment Queensland around expanding our channel, our pipeline, and our customer base. We will work as well in the battery space in India. To date, that hasn't been our focus. We've been focused in the U.S., where we've done the Black Diamond Structures. We've done a joint development agreement, which I'll come to in a moment, and with carbon nanotubes. In South Korea, we have announced on the battery side, we already have a distributor there for life sciences, but we've announced Camsun as a distributor. I just was on a phone call with our team, the battery team, and their team on how we're planning to move forward there. In Europe, we continue to engage with Weon and other battery manufacturers in Europe.
On the life sciences side, we've actually re-engaged with some very large big pharma companies around some of our products and our potential products. Operational highlights for the year, we've Black Diamond Structures, joint venture, joint development agreement, which is around combining AnteoX with carbon nanotube dispersion technology that they have. We will actually be visiting Austin, Texas, where their plant is, in early October as part of attending the Detroit Battery Fair, Battery Expo, which we won't be exhibiting at, but we are planning to be meeting with a range of potential customers, and we're very focused on that. In terms of Weon, the trialing of Ultranode is still underway. It's a very structured program there. There is the potential for Ultranode to go into commercial production of their miniature batteries, wearables, of which one customer is Cochlear.
We're very pleased to be able to announce that we had achieved significant performance milestones around our Ultranode X product and formulation, technology formulation, close to 900 cycles at 80% capacity with the 70% silicon anode. We're very, very pleased that we've achieved that, that we know how to get to what is considered an industry benchmark of 1,000. On the life sciences side, we've also been working very well with the Serum Institute of India, where we've actually been receiving orders above the level that we anticipated through the five-year contract that was struck at the early part of this financial year. We continue to work with Vidcare, which is a startup company, but what we're very keen and very enthusiastic about there is that it's a platform.
If we get into Vidcare, we get in as a trusted supplier, that could open the door to a number of different applications. It is very important to us. As I said, since the end of the financial year, we announced Camsun for us to support us in South Korea and build off people who are parties who have already contacted us and their extensive distribution base. We're really looking forward to working with them, and we've had some good discussions already. MOBIUS is, which stands for Molecular Biosensor at Point of Use. The MOBIUS Australian Research Centre Hub was launched this month and hosted primarily by La Trobe University. It was opened by John Brumby and it's received significant funding, and we were the first industry participant in that centre.
It's right in our sweet spot, and we're very pleased to be involved, and we're looking forward to seeing how, with what they do, which is research, development of biosensors, and commercialization, how we can really seriously participate and leverage off what goes on there. What I wanted to move to now was just some high-level financials. In terms of cost, we had a real reduction of 10%, and as I said, we accelerated our R&D tax rebate. Obviously, we have a very keen focus on cost, and we're seeking to get further cost reductions over the coming financial year. In terms of revenue, we doubled our revenue and are very pleased to be able to say, of course, we are doing everything. We have every effort for our continued growth in our revenue profile.
At this point, I would like to summarize by saying we've got this chemical binding platform technology that has application in multiple industries and our products, which are in life sciences, which is AnteoBind and AnteoBind NXT, and then in batteries, AnteoX and our technology, Ultranode. All of them focus on improving performance and lowering production costs for our customers across a range of applications. That's what they do, that's what we offer, and that's what our messaging is being constantly refined. Our value proposition is obviously specific for that end application. We're focused on commercializing our products and growing our sales revenue. Over the past few months, certainly, we've seen foundational changes in relation to our people, our systems, and the ways we're working to underpin this accelerated commercialization.
We have got a strong pipeline of opportunities, of sales opportunities, and we are working with strategic partners, which I'd like to move to next. Growth plans for us for the life sciences is for us to have continued growth in India, growing markets such as South Korea, where we're already working with Camsun, the U.S. and Japan. We're working quite heavily on strategic partnerships, potential strategic new product collaborations and partnerships in Europe with some large chemical companies, including large pharma, big pharma. We're looking at China potentially with the right partner and under the correct terms and conditions. We're taking that very carefully and judiciously. That's the sort of jurisdictional focus and in terms of the actual products.
Growth in our vaccine development and our product being used in vaccine development, growth in our product being used in quality control around vaccines and its use in lateral flow diagnostic tests. That's what we do now, growing that with other companies is our focus. There are opportunities for us to expand in applications in pharmaceuticals, in targeted drug delivery, biotechnology around refining, bio-refining, and immunoassays around multiplexing and ELISA chemoluminescence. We've already started to move, but we'd love to see, and we think there are opportunities in the pipeline for us to move into animal use of our products and working with in an animal application. Lateral flow tests, we're looking forward to being able to let everyone know about progress there. Through MOBIUS, we believe there'll be some opportunities in terms of biosecurity for AnteoBind to be used. What does the pipeline look like?
As you can see, from a leads perspective, there's a heavy India focus. When it comes, between AnteoBind and AnteoBind NXT, the split's around 80-20. What we're focusing on here is expanding the lead pipeline and then systematically moving those leads through and converting them to sales. Similarly, how does that look for advanced battery technology? Our focus is growth in the U.S. with off the basis of the BDS joint development agreement, with defense and security applications being what we're actually really focused on trying to secure opportunities around. Growth in South Korea, India, and China as well, but on a very structured and judicious basis. That's the jurisdictional view. What does that mean in terms of products? AnteoX is our product and our focus. AnteoX combined in joint development already with carbon nanotubes is where we've gone.
Binders, new binders, there's new binder technologies developed and potentially in separators too. It can be used within the battery in a range of different ways. From an Ultranode perspective, obviously, Weon is a key focus for that to be a success, but for us to get other companies who are looking to use Ultranode formulations in the end product commercial rollout. Strategic partnership-wise, whilst we announced that the Queensland government grant that we were offered, we would not proceed with, we were able to retain the opportunity to take on the, or to progress the ARENA grant, which is worth around $4 million for a strategic partner that might want to work with us on an Ultranode X product development. What does that pipeline look like for our advanced battery technologies business unit?
We've been doing a lot of work on expanding the leads, the number of leads that we've had through conferences and networking. Now we're working very hard to put the resources in to move those leads in a structured fashion, prioritized, structured very specifically around sales conversion through the pipeline. The split between AnteoX and Ultranode is showing, and in there, we've also got suppliers who could also be customers as well as strategics. You can also see the geographic spread. We've been in Europe for a while. We're moving seriously into the U.S., India, China. We do get a lot of inquiries from China through South Korea, which is where we expect to seriously expand this further over the coming months. In terms of strategic partnerships, not surprising, the types of parties that we're talking to are chemical and materials companies, diversified multinationals, battery manufacturers, and big pharma.
What we're looking for is how to structure that to add significant value as the company moves forward. In summary, we are very focused on the commercialization of our products and growing sales revenue. As I've said, India, South Korea, and U.S.A., they are our focus at this time. Reinvigorating relationships, expanding our sales pipeline is what we're doing. Entering into China on the right terms with the right partner could take place. We are well positioned with a pipeline of opportunities, and we need to put in the effort and the know-how to actually convert those to sales. We're well positioned to achieve success moving forward. I'll hand back to Simon now. I'm very pleased to take questions.
Perfect. Thanks very much, Merrill. Just a reminder, if you did want to ask a question, you can submit through the Q&A button at the bottom of your Zoom screen. We'll get to a few questions that have been submitted. Will carbon nanotubes be functionalized with AnteoCoat or Bind?
Will they be functionalised? In terms of the product that we are developing, the product offering around that is to do with how AnteoX interacts with the carbon nanotube. Black Diamond Structures is actually a dispersion technology company. They purchase carbon nanotubes. It is about the dispersion and the functionality of those carbon nanotubes. Our product offering is that AnteoX allows for lower consumption potentially of carbon nanotubes, which are very expensive, and better performance. It is really more to do with, you ask me, is it coating or is it dispersion? From my perspective, it is more from dispersion and electrochemical conductivity. I hope that answers the question.
Okay, thanks, Merrill. Just a follow-up question. Will AnteoX be used to improve lead acid batteries?
No, our focus is purely high-silicon anode. I have one small exception to that. We will always pursue what's in the best interest of the company in terms of opportunities that come our way. Quite recently, we've been introduced to a polymer cathode company. They have already purchased or are in the process of purchasing a sample from us. We are pretty excited about what we might be able to do between a polymer cathode and a high-silicon anode. The answer is that's our focus, high-silicon anodes.
Thanks, Merrill. Are Burnett Diagnostics Institute engaging with AnteoTech?
Not as far as I'm aware. Most of, what we tend to do is very international. We have got a number of, we are talking to some very well-known research groups in laboratories, and we look forward to being able to say more about that into the future. We're always open, and we do actually sell a lot of AnteoBind into laboratories across Australia, New Zealand. The thing is that they can be quite small volumes. It depends how we interact, whether that laboratory is promoting our product, using our product, looking to collaborate with us. There's a whole raft of ways, but I'm not familiar with that one in particular.
Okay, thanks, Merrill. I'm just mindful that the company doesn't give guidance, but just a question around future revenue. Can you give us an indication as to when we'll receive significant revenue?
Okay, what I can say is that, as I've said throughout the presentation, that is the focus. The specifics of when that may or may not drop and how that's going to unfold, we're not in the position to do that. I think talking to the team before I came here, it's really important to share that everyone is doing everything they can to make this happen and for things to be accelerated in terms of sales execution. I guess that's my answer to that question. We're going as hard, as fast as we possibly can.
Perfect, thanks. Just a question. Are you able to provide an update on our business relationship with EV1, EV2, EV3, etc.?
All right, okay. Yeah, that's a good question. What we've tried to communicate is that we are very focused on Ultranode in terms of where that could go. It could be groundbreaking. It could be a really big thing, and there's no doubt about that. There are a number of aspects to that. The earlier question was about lead-ion batteries. From a Lithium-ion battery perspective, silicon anodes require people to, most of the industry is still working at less than 10% silicon, and we're way out there at 70% and 95%. I just say to you, there is a sort of threshold, and there is a journey, that's probably a better way of putting it, that people need to go on and understand how the sort of silicon that we're using in Ultranode is readily available.
It can be low cost at volume, and moving into high silicon anodes, we address some of the issues around swelling, we address key issues around swelling, and there's all the benefits that you get from silicon. The answer to that question is we see massive opportunity in the future around high performance, high silicon anodes. The thing is, we have to bring the market through and market with us, and Ultranode X will require more investment. We understand that. We are continuing to work on that on a very low cost basis, but we've been clear that will require us to engage with a strategic partner who is fully focused on that much higher energy density, essentially kick it out of the park type high silicon anode at that performance level.
We've shown through our performance milestones results that we had this year that we're right there, but it will require further investment for us to get seriously into the EV market. We made it clear in the strategic review that we've got formulations and opportunity for us to create revenue through what we've already tested, and we're working to capitalize on that and create sales opportunities. There's the answer to that one. It's the European EV market. We've been clear about that. It is quite difficult, and hence the South Korean approach, and we'll be looking to leverage everything we've done into there.
Right, that leads into our next question. Can you just expand on the relationship with the Korean distributor Camsun and how you see that developing?
Yes, okay. What we, how we see that developing is it came out of actually an introduction from a client or related client to something we're working on. We have a number of parties in South Korea we've been having conversations with. The view was that we would benefit from having a local representative who could help us to accelerate our vision for sales there across AnteoX, potentially AnteoS in the separator side, as well as Ultranode. We think we've had some very good discussions. We feel like they're across, they have already a customer base in batteries, and we are looking to work with them creatively and expediently. It was really on ground, know the market, existing customer base, how can we get in there, and so far, so good.
Thanks, Merrill. Are we now more focused on working with battery manufacturers rather than EV companies, and if so, why the change in direction?
Yeah, I think that's also, yes, the answer is yes. Because we've expanded our focus across different applications, of course, Weon is wearables. We're also working with a company that does consumer products in mobile phones. Now, without getting too excited about that, they have to do testing and they have to move through new commercial product evaluations, and there's a horizon that sits with that. We are very focused on drones, and we see very significant opportunity for Ultranode in there in terms of lighter. It's also about what that application is for unmanned aircraft and drones, biosensors, all sorts of things. We basically see Ultranode has the potential to move out into those products. Back to EVs, and sorry, it was about why we're not just in EVs. Was that one?
Sorry, one second. If so, why the change in direction in terms of from battery manufacturers as opposed to EV companies?
Battery manufacturers. Yeah, battery manufacturers still, but battery manufacturers of different applications. Why? One of my backup slides that I've got, and it's actually in the pack that went out today, is how complex the supply chain is. We are one component, and we need to get in when battery manufacturers are doing their design for the next generation batteries. That is the lesson to learn from the likes of Mercedes-Benz, or it doesn't matter which manufacturer you get in. They do not manufacture batteries. They can stipulate or set the standards or the design parameters they would like, but even then, that is the battery manufacturer, the likes of CATL, who are actually working on battery design.
That is for us, for volume to get in, and in the longer term, increasing sales value, we need to be right at the source where the design is happening and the decisions are being made. That's the actual bottom line.
Perfect. You just touched on it there, but are we still engaging in discussions with Mercedes, or is that relationship now closed?
No, there is a good ongoing relationship, and you know they're always interested in, well, they will always be interested in what we can deliver to them around cost down and performance up. I think that, you know, the last, the information I got from the last meeting was they have a very tight focus on costs, and they know what they're doing is within their own parameters, but we will maintain that relationship. It's a good relationship. We'll maintain it.
Great. What are the main roadblocks you find you're encountering in getting deals done?
We are in two complex businesses. As I said, the supply chain, we are one small component with AnteoX in a very complex system. Getting in there, getting noticed, getting the opportunity, which is what we're working on around segmenting, targeting, making sure we're talking to the right people, the decision makers who can give us the opportunity to showcase what we've got, the main roadblock is it just takes time, and everybody's quite secretive in some of these, in the two business units we are in. For example, batteries, we can be approached about they'd like to use our product, but they want our product, and we'd like to give them guidance about what we know, because we do know a lot, we've seen a lot, but they're not so willing to share.
It can take quite some time if we can't really guide them in how best to apply our product. It's that sort of circularity in there. How we work around that and how we make sure we're actually offering a new product, which is called Support Lite, where we can provide a sample and give them learnings from our experience base and give them remote support as they use that product in their own laboratory. What you find, Simon, is that even if we do test work and they provide us with all the materials and components of the way that they put batteries together, they'll still want to try it themselves. This can take time. I think it can take three months for people to test batteries in the format that they want and in the formulation that they're looking for. How do we expedite that, right?
We're working tirelessly on how to improve.
Right. Are you able to advise when we might hit our magical milestone of 1,000 cycles at 80% retention for our battery technology?
Yeah, okay. We did actually put out, I'm absolutely sure we put out one of our latest releases, it was the Queensland release, that's right, that we have engaged with well-known in Australia, well-regarded parties who are able to do single-layer and multi-layer pouch cell testing. We are undertaking a program which involves us getting to that 1,000 cycles. We have learnings from our last milestone, and we're quite excited that work is underway. It's really important to say sales is our focus, but if we want to continue to be known and seen as leading edge, then you need to be constantly on top of things and being able to provide data, validate data, show scale-up and commercialisation capabilities. That was in now in knocking back the Queensland grant. We basically have set up contracts with very well-known laboratories who are very well equipped.
You asked me for the timing for that. It's in progress. It definitely is in progress, and that's a good thing.
Perfect. Just a couple more questions. Do you see part of the burgeoning e-bike market that can progress in the shorter term?
Yeah, I myself am very enthusiastic about that, about e-mobility. We need to find a pathway, which is why we want to work with TRQ and Oztrade, particularly in India, because for those who are in that space, they'll understand that India is, well, India is a special place in terms of what the market size and the capabilities, but there's actually quite a lot of Chinese technology in terms of battery technology there. I'm quite hopeful that through the South Korean angle, we might find a bespoke e-mobility business that is in India that we may be able to leverage off. The answer is it is a focus. We haven't quite got the pathway through, but I do see some potential there, yes.
Great, thanks, Merrill. Assuming Black Diamond Structures is one of the two ABT companies at negotiation stage, can you please clarify if the second company is a chemical company, a battery company, or other?
Weon is obviously in there too. I think that's the answer to that question.
Okay, that's perfect. This is not a setup. This is a submitted question, more a statement than a question. Just wanted to say how excited we are as a collective group of large shareholders that you have accepted the position of CEO in a permanent capacity. We might finish up there, Merrill. Very much well done. I might just hand it back to you for closing remarks.
Thank you very much. That's very kind. They're very kind words, and I greatly appreciate them. I want to thank you all for attending, and I want to thank you for your support. I'm looking forward to working with the team and working incredibly hard. They're a very hardworking team to showcase what we can really do and significantly add value to shareholders. I am excited about that. Again, thank you very much for your attendance today.
Great. Thanks very much, Merrill. Just a reminder that this has been recorded and will be available via the same link that you registered from. Thanks very much for joining, and thanks very much, Merrill. Well done. Thank you.