AnteoTech first week in the office, so we are going to endeavor to answer as many questions as possible, just noting that there is a strategic review underway as detailed in the quarterly today. We'll just keep that in mind. With that, Merrill, I'll hand it over to you to give an introduction. Thank you.
Thank you, Simon. First of all, I'd like to acknowledge that there has been a lot of change. As Simon said, this is my first week in the office, so forgive me if I'm not able to cover in the depth of detail that some of the questions came through and everything. It is my intention to be able to do that very soon. I was adamant that we needed to have this webinar to really show that we're seeking to have greater transparency and clearer communications with shareholders. It is a different board now, and the past board members and executives certainly did a good job and their very best in terms of the challenges that we're facing in the market, which are very real. I'd like to thank you. That's a really important message at the outset. Thank you for your support.
Thank you for engaging. I look forward to going through as much as I possibly can, as Simon said, while we go through a strategic review and more fulsomely can come out to you with what we're planning to do. I'll hand back to Simon.
Great. Thanks, Merrill. First of all, we'll get started. Just again, a number of these questions have been submitted. We've amalgamated some of them in terms of double-ups and summarized, so forgive us for that. Where we'll start is battery metals or battery materials, and specifically just around the current performance and technical data, Merrill. Can we just talk to what are the latest performance results for Ultranode, including specifically data at defined silicon percentages?
Coaching.
Yeah. Great. Okay. So we've released our quarterly report, and it's got the clear target there, which is 800 cycles at 80% capacity retention. Of course, our focus is the 70% high silicon anode. Now, I'd like to start that comment by making clear that, yeah, clearly we haven't delivered on the commitments that have been made before, which are in the 1,000 cycles at that same capacity. We're not giving up. I'll go into a little bit about that. What we really need, what we're looking to do is really capitalize on the work that's been done to date. We're clear that there's more investment required to get to where we need to go to.
By breaking that out into building a product around what we've already got, which is suitable for different markets in the consumer side and the e-mobility side, and really finding a partner that is on the same page that is strategically aligned with us is where we're looking to go. We'll have more on that in the future, obviously. On the high-performance side, we see that as something that we'll need to step towards. We actually have loaded up on the website a fact sheet, if you like, or a corporate flyer this morning, which is on one of the front pages and certainly in amongst the brochures that really goes through a bit more about what is it that we do and where are we heading with both of our divisions, so life sciences and the advanced battery materials with actually technology group.
Productising, commercialising, and making sure that we actually get into those unique or slightly more niche markets is where we're going. There were some questions about pouch cells, and yes, they have been tested by multiple parties in the past. At the moment, Mercedes-Benz is the one party that's doing pouch cell testing. There were also questions about full cell. I guess that is a really important part of what we hope to come back with, around how we are engaging in the value chain with commercial partners. The answer is yes, pouch cell. We are doing coin testing, but we are doing pouch cell testing. It has been done in the past. With new formulations around the Ultranode that we're currently testing and where we want to go, that is being tested.
I guess the bottom line is we'll have more information as it comes to hand. I'd just like to more fulsomely add to some of the more commercial questions that came in on the advanced battery technologies for the advanced battery technologies group. There's genuine market interest. Again, in the quarterly, we've said that we've engaged with three global chemicals companies. The key for us is to seek to convert that in a way that adds value for everybody. That is, and there are many other parties who are actually evaluating a product, as everybody knows. It's about making sure we really get to where the value proposition and make sure that our partners are very committed and incentivized to make change. It is a very challenging market and doing deals in this market.
We're not the only ones who are in new technologies facing that. Of course, my job coming in is to get really, really commercial around the way we look at that. I just would like to, everybody's aware of that, but I have to talk about the fact that in a bespoke market where there actually aren't standards around people manufacturing processes for coin cells, cylindricals, prismatics, and pouches, it is a very bespoke process that we've been going through in minimum six months for people to validate the technology up to two years. We're really looking at our sales process and streamlining that and the end value proposition to try and expedite the engagement we have with like-minded companies. A real commercial focus is what I intend to bring to this role. Back to you, Simon.
Great. Thanks, Merrill. Just specifically, just trying to make sure that we ask the questions. How does Anteo involve itself in its dealings with end-user clients and their independent battery manufacturers, for example, in its evaluation of both Anteo X and the AnteoTech Ultranode? Does Mercedes-Benz share its findings with its battery suppliers?
Very good question. The Mercedes-Benz relationship and where we want it to go is exactly that, is for the validation in their laboratory, which is what they requested, to then be shared with who they're planning to partner up with. This is a really difficult part, a really difficult part of what we're doing, which is handling the geopolitical and the sustainability and a whole range of frameworks and how people shift to those and how that is actually going to be delivered within the European Union, for example. The answer is we understand that they do. Who is that exactly? How do we get the introductions and actually get slotted into their future designs and their production schedules is where we're at with Mercedes. That's what we're hoping we'll get out of the relationship.
We've got some more discussions in June, and we certainly will keep them very pointed and very much to how does this all work and how can we make this happen. I'd really like to make it clear that for the likes, and I won't speak specifically about Mercedes-Benz, but really for the European car manufacturers, Chinese supply of batteries is what it's all about. How that actually moves commercially, it's really commercial, very, very commercial. They're very, very focused commercially into non-Chinese manufacture of batteries and how all the technologies come together and how long various car manufacturers will continue with the way they do things, which is putting Chinese components into their EVs. That is a much bigger economic and regulatory, if you like, framework that we must work within.
It's possibly not well known just how extensive all the componentry is and how it comes out of China. That's the competition we're facing. It's very, very significant.
Great. Thanks, Merrill. Just a question on how much Anteo X has provided to Mercedes-Benz for manufacturing trials and what's the status towards a design phase and final decision?
Okay. This is exactly what I was just talking about. Anteo X is a component in the overall design. Very small quantities for testing at laboratory scale. In terms of Mercedes, and everyone will be really aware of this, they are part of ACC, a group around gigafactory establishment in Europe. That is on shaky ground. We are sort of somewhat behest to how Mercedes, it's exactly like the last question, which is how do we get into that system where we need to get an update and we need to know what is really happening. Many, many people are asking the same questions as us. That will come through with our strategy around how we see us capitalizing on the work that we have done with Mercedes and where things are shifting.
It's just a bit early for us to be able to say that because of the strategic review.
Great. Thanks, Merrill. Just a question just around commercial progress. What progress has been made with other major EV companies?
Yep. Yep. I think in the past, we've been pretty clear that engagement with OEMs has been, and in fact, everyone's aware of engagement with OEMs has been on the cards. In writing the quarterly report, I wanted to be very clear that there is some pullback in commitments around where things are going, particularly in the high-silicon side of things. We need to be cognizant of what's going on in the market and be flexible and create options that will really leverage off what we've done to date. It's not that they're going away. It's just that things are going slower. As a company, a small Australian-based company, we need to be flexible, nimble, and work on how we can get in the systems around e-mobility, for example, that may be going faster at this time.
That's everything that's been reviewed under the strategy review.
Great. Thanks, Merrill. Just a question further just around commercial progress on consumer electronics companies. I know you spoke just about e-bikes, etc., but where does that stand at the moment as well?
Yep. No, no. Obviously, we have our Vice President of Sales, Fabian Beck, in Germany, and he has a very deep consumer battery experience base through his work at Varta and his contacts in that area. Yes, that is an area that, again, when we more fulsomely come out with our strategy, we are very much looking at through relationships, networks, and also where we can get in as fast as possible. The time that takes for validation, new design, was your previous question, which is around in the manufacturings into the manufacturing process. There is a timeframe involved in that. As I've said before, six months minimum, two years to fully validate. How can we work around that with customers that are already up the learning curve where we can expedite those processes? The answer is yes, it is a focus.
Great. Thank you, Merrill. Just a couple of final questions around commercial progress, just specifically around carbon nanotube companies and chemical companies.
Yeah. Carbon nanotubing. I think what I've already explained is that we are taking on board the context of the markets that we're working in, and that relates to how could we diversify. That's what this question is really about. In the chemicals companies, this is a big focus. As we've said in the quarterly, we're engaging with three global companies who all already supply into battery manufacturers. Again, this is about what can we do as a small company with our expertise and our networks. By leveraging off that and their established customer base and their testing programs and Anteo X being added into those testing programs is what we're seeking to do through distributorships and partnerships. That's where we're going.
Chemical companies in particular who are great quantums larger than us, who are already established, as I said in the quarterly, we're already engaging with them and we're looking to do that further. Diversification is, I guess I've already referred to that as something we're looking at, yes.
Perfect. Thanks, Merrill. We will move to just around strategic sales and commercial outcomes. Just a question. Given past guidance on imminent commercial deals, why have signed contracts not yet materialized and what specific barriers have been encountered?
Yeah. Okay. This is a, as part of coming into this role, I've obviously reached out to my networks in the sector around the current status of different parts of the battery componentry and what they're seeing, how it's going for them. It's not great for our shareholders to hear that we're not alone. It's a very challenging market for people to be making deals around new technologies and the progress that needs to be made in batteries. With EVs being the competition around Chinese EVs, Chinese technology, and we get a lot of comments about how a Chinese technology change is going to impact us. We obviously have a watching brief on that, and they are going to impact everybody in the market.
We need to constantly be looking at how do we fit in, how do we move forward as fast as possible, how do we secure a position. That comes back to commercially, we've been asked through these questions, why is it taking so long and why are we not seeing what's expected in terms of commercial outcomes? It's not because we're not engaging and getting to a certain point, but actually getting across the line is a timeframe that is sometimes not in our court. It is with other parties who have other issues going on. It's a very challenging market that our end customers are facing in terms of their flexibility, their nimbleness as well. There isn't one reason, one specific reason. We have standard processes we go through. All I can say is I acknowledge that there's an expectation there and the frustration.
That's every avenue, every potential we are moving forward with. Simon and I, that's.
No, I think you're again noting your one week in, Merrill, and just with the intention to ask as many of the questions that have been submitted. I think you're doing a great job. We'll keep going just around at what point will AnteoTech consider walking away from "tire kickers" to focus on serious partners?
Right. That is a really good question and very critical that we are using our very limited resources to the best effect. I'm going to be first week in office, as we've said, and I have meetings with all of the heads of each of the divisions and across the team to understand how we do make the decisions to do what we do, and if we don't get to a certain point, pull out. Because it's also about the pipeline. I'm hoping that I can bring some of the networks that I have from being in cathode active materials and through working in recycling to the table and some of that around making sure that we have high-level commercial discussions as soon as possible and where there isn't a clear co-joined commercial value proposition that everyone is on board with, that we move on.
Because filling that pipeline with opportunities is something that we're really going to be focused on in the next month or so.
Great. Thanks for that, Merrill. Just a question just around funding and grants. When does AnteoTech expect to receive funding from QIC and ARENA?
Yeah. Okay. That really, as everyone knows, is matching funds, and it will also come down to how the strategy falls out. Bear with me with that one because we want to do everything that makes sense around rolling out our products and commercialisation. Bear with me on that. We're still reviewing that. I guess, yeah. Simon, I guess that also might lead into life sciences. I'll leave that one with you.
Correct. That's the next question. Just around the Serum Institute of India, is it purchasing AnteoBind at a rate higher than the minimum defined in the agreement?
Yeah. So yes, they're at a run rate of AnteoBind that is higher than was anticipated. In fact, they've used their full 12, what we originally sold for the 12 months, in six months. We are looking forward to further orders coming through. In fact, there's been a recent visit to meet with them, and they're coming to see us as well. Now, that's around usage, but they're also developing to diversify into new tests. There are lateral flow-based tests being developed. The good thing about our Serum Institute relationship is that they've introduced us to other parties who are also developing new tests. I'd say we're really looking forward to meeting with them here at the office and deepening that relationship.
Great. Thanks, Merrill. Just another question just around the diversification of AnteoBind usage within the Serum Institute of India's product lines. Has this been achieved?
Yeah. That comes back to the lateral flow tests and other tests that they're looking to get into. I would say with that, of course, with clinical trials and us getting into tests that will then lead to larger scale production, that's a good segue perhaps into Vidcare and where we're up to Vidcare. I know there were some questions there as well. That's where with Vidcare, we're in testing, and there's been real serious engagement and a deepening of that relationship as well. The team was up for two weeks in India doing optimisation assay technology training. Where we're up to there is we're waiting for testing to be completed for us to go into clinical trials, which is the precursor for us to then go into larger for approvals for us to then go into larger scale production.
I know that there were some questions about where are we up to, when's that all going to happen. It's essentially an ASAP type situation. Everything going through that stage process is being watched by the team, managed on a daily basis.
Great. Thanks, Merrill. Just a question around expansion plans. What further opportunities have been identified by Gautam and the life science team in Australia, India, Europe, and the US?
Yep. There are a number of high-value research groups that are evaluating AnteoBind. Some of those are in the medical device field for those who are specifically interested in what we're doing in life sciences. As part of the strategy, we're also looking at deepening and expanding our relationships in terms of distributors and opportunity finding. We've got a whole piece which we're trying to pull together, and we'll be able to communicate more fulsomely on. The last trip did expand our pipeline. I guess the one really key message that Gautam has shared with me is that the people we're working with are very well-credentialed, very well-regarded.
This is part of our process, which someone asked again about tire kickers, part of our process of making sure that we're working with the right parties to really get us into the system and up and running.
Thanks, Merrill. Just final question around life sciences. How does the team plan to address these opportunities and grow the customer base?
Yeah. That will be part of the strategy review again, making sure that we've got that we're right-sizing that team, got the right skills in that team, and we're really clear about the opportunities we're going after.
Perfect. Just leading into more of a corporate and sales and commercial team discussion, can we just have an update on the progress of Fabian Beck as the VP of International Sales?
Yep. Excellent. Yep. Fabian and I have been talking on a very regular basis as we've gone through these changes. It's actually really great to have him on the team and for us to have some very similar views about where some opportunities may lie. We will very much rely on him and his deep networks in terms of where we go next. Very, very pleased to have him and to be able to leverage off his networks and knowledge base.
Great. Thanks, Merrill. I understand there's a strategic review underway. This probably leads into this. Is there an intention to review staffing and costs based on performance?
Absolutely. Across the strategic view, it's everything from costs, revenue streams, which we've been talking about, which is marketing, sales, and communication thereof. Also, we've already talked about that around investment. In terms of customers, some of the customers we're talking to, particularly on the chemical companies and battery materials companies, are also potentially strategics that we are seeking to engage with. It's across cost, revenue, and investment, and how to manage our resource base and our cash flow. The answer is everything is on the table, and we are looking to be able to come out to the market with how we've changed things or how we've rearranged things very shortly.
Great. Thanks, Merrill. Just pivoting back just around intellectual property to make sure that we've covered this as well. When's the Ultranode patents expected to be granted?
With that one, sorry. That one I'll come back to.
Yeah, no, that's fine. Again, any question that we haven't comprehensively covered, or if you do have any more questions, more than happy to receive emails and come back on those. Apologies if we can't get to everything. Merrill's trying her utmost. We'll come back on that as well. We'll just come back on any feedback around patent lawyers that they've provided, as well as some of the discussions around Anteo X being registered under REACH. If we just go now to just around the company's website, company image and operations, when will that be updated and improved? I can probably cover that one. We're currently working over time in terms of updating that and ensuring that it reflects the current operations. Stand by and watch that space. More so probably for you, Merrill, just around shareholder communication.
Can shareholders expect clearer, more regular updates on the true state of commercial prospects?
Yep. That's really good. It's probably a good place for me just to circle back around and really make sure I clearly message that there is a different board involved, and we're very committed to transparent communications with shareholders and to improving our overall marketing and sales communications with potential customers. As I said, we put up a brochure this morning, which is a general brochure, and we've got conferences coming up. Three we're looking to, which is also in the quarterly, which we're looking to attend, and really working on our collateral and the connections that we can get through that, but really focusing in our message about what it is that we offer. The very, very significant improvements that Anteo X can deliver, as well as working with partners around where Ultranode can fit into their manufacturing processes.
As we've already said, I'm looking forward to coming back more fulsomely on the strategy that we plan to execute. We're really looking forward to engaging. We've got our investor relations email for anyone to send in questions that they have that haven't been answered today or ongoing questions. I'd really like to thank you again. I'd like to thank everyone on the call and all of our shareholders for their support. We're really looking forward, I don't know how to say it better, to getting stuck in and very committed to delivering shareholder value.
Great. It's been comprehensive. As I said from the top, in terms of Merrill just starting, we did want to ensure that we asked and addressed as many possible questions. Hopefully we've done that. If we haven't, more than happy, as Merrill said, in terms of having any submitted questions on the email, we'll endeavour to come back to those in the coming days. I think the only other thing that I'll just cover off is we will aim to communicate a bit more through the mail-out system that we do have. Around different conferences that we're attending and presentations that are included on those, we'll endeavour to communicate with shareholders so that they're across it. Merrill, well done. If there's any further questions, as I said, please just send them through. Thanks all for attending. There's a lot on the call.
Merrill, well done again. Thank you very much.
Thank you. Thanks to everybody.
Thank you.