Earnings call transcript: Antiotech strategic review amid market challenges in Q1 2025

Antiotech (market cap: $15.54M) recently held its Q1 2025 earnings call, where company executives discussed strategic initiatives amid challenging market conditions. Although specific financial figures were not disclosed, the company emphasized its strategic review and focus on cost management. The stock, which has seen a 12.5% gain over the past week but remains down 65% over six months according to InvestingPro data, remains stable post-call.

Key Takeaways

• Antiotech is conducting a strategic review to optimize costs and resources.
• The company is targeting advancements in its Battery Materials Division, including ongoing tests with Mercedes Benz.
• New leadership under Executive Merrill is exploring diversification strategies.
• The market remains challenging due to competition from Chinese manufacturers.
• Antiotech aims to expedite commercial engagements in e-mobility and consumer electronics.

Company Performance

Antiotech is navigating a competitive landscape, focusing on flexibility and niche market opportunities. The company is leveraging its technological developments in the battery materials sector and exploring potential partnerships with global chemical companies. Despite market challenges, Antiotech is committed to advancing its strategic initiatives and improving operational efficiency.

Financial Highlights

• No specific financial figures were disclosed during the earnings call.
• The company is emphasizing cost management and resource optimization as part of its strategic review.

Outlook & Guidance

Antiotech is preparing for an upcoming strategy presentation, which will outline potential opportunities in e-mobility, consumer electronics, and partnerships with chemical companies. With analysts forecasting significant revenue growth of 504% for FY2025, the company is exploring ways to streamline its sales processes and diversify its revenue streams. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels.

Executive Commentary

"We need to constantly be looking at how do we fit in, how do we move forward as fast as possible," stated Merrill, the new Executive. This highlights the company’s commitment to adapting to market dynamics and exploring new opportunities. Merrill also emphasized the importance of transparent communication with shareholders, stating, "Everything is on the table, and we are looking to come out to the market with how we’ve changed things very shortly."

Risks and Challenges

• Intense competition from Chinese EV and battery manufacturers poses a significant challenge.
• The validation process for new battery technologies is lengthy, taking 6-18 months.
• European manufacturers are increasingly seeking non-Chinese battery components, which could impact market dynamics.
• Slow progress in commercial deals, as noted during the Q&A session, may affect revenue growth.
• Potential funding from QIC and Arena remains uncertain.

Antiotech is focused on addressing these challenges through strategic initiatives and partnerships, aiming to enhance its competitive position in the market.

Full transcript - Anteo Diagnostics Ltd (ADO) Q3 2025:

Simon, Moderator/Company Representative: That’s her first week in the office, so we are gonna endeavor to to answer as many questions as possible, but just noting that there is a strategic review underway as as detailed in the quarterly today. So we’ll just keep that in mind. But with that, Merrill, I’ll just hand it over to you to to give an introduction. Thank you.

Merrill, New Executive/Leader, Antiotech: Oh, thank you, Simon. And first of all, I I’d like to acknowledge that there has been a lot of change. And as Simon said, this is my first week in the office. So forgive me if I’m not able to cover in the the depth of detail that some of the questions came through in everything. But it is my intention to be able to do that very soon.

I was adamant that we needed to have this webinar to to really show that we’re seeking to have greater transparency and clearer communications with shareholders. And, you know, it’s a different board now, and the past board members and executives certainly did a good job and and their very best in terms of the challenges that we’re facing in the market, which are very real. And I’d like to thank you. That’s a really important message at the outset. Thank you for your support.

Thank you for engaging, and 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. So I’ll hand back to Simon.

Simon, Moderator/Company Representative: Great. Thanks, Meryl. So 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 and summarize, so forgive us for that.

But 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?

Merrill, New Executive/Leader, Antiotech: How do you Yep. Great. Okay. So we’ve released our quarterly report, and it’s got the clear target there, which is 800 cycles at 8080% capacity retention. So and, 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 at that same capacity. But we’re not giving up, and I’ll go into a little bit about So what we really would need what we’re looking to do is really capitalize on the work that’s been done today. You know, we’re clear that there’s more investment required to get to where we need to go to. But by breaking that out into build building a product around what we’ve already got, which is suitable for different markets and 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 is where we’re looking to go. We’ll have more on that in the future, firstly.

And then on the high performance side, we see that is something that we’ll need to stick towards. So we actually have loaded up on the website a 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 or battery technology group. So productizing, commercializing, 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. And at the moment, Mercedes Benz is the one party that’s doing pouch cell testing.

And and there was also questions about full cell. So I I guess that is a really important part of what we hope to come back with is around how we are engaging on in the value chain with commercial partners. So the answer is yes. Poucher we have we are doing coin testing, but we are doing pouch cell testing. It has been done in the past.

And with new formulations around the ultra node that we’re currently testing and where we wanna go, that is being tested. But I I guess the the bottom line is we’ll have more information as it comes to hand. I I I I just like to more fulsomely add to some of that more commercial questions that came in on the advanced battery technologies for the advanced battery technologies group. So there’s genuine market interest. And, again, in the quarterly, we’ve said that we’ve engaged with three global chemicals companies.

And so the key for us is to to seek to convert that in a way that adds value for everybody. So that is that is and there are many other parties who are actually evaluating a product as everybody knows. But it’s about making sure we really get to where the value proposition and make sure that our our partners are very committed and incentivized to make change. It is a very challenging market in doing deals in this market. We’re not the only ones who are on in in new technologies facing that.

But, of course, my my my job coming in is to get really, really commercial around the way we look at that. And I just would like to everybody’s aware of that, but, you know, I have to talk about the fact that in a in a bespoke market where there actually aren’t standards around people manufacturing processes for coin cells, cylindricals, prismatics, pouches, that 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. So we’re really looking at our sales process and streamlining that and the end value proposition. So to try and ex expedite the engagement we have with with like minded companies. A really, really a real commercial focus is what I I intend to bring to this role.

Back to you, Simon.

Simon, Moderator/Company Representative: Right. Thanks, Merrill. Just specifically just trying to make sure that we ask the questions. How does Antio involve itself in its dealings with end user clients and their independent battery manufacturers, for example, in its evaluation of both Antiox and the AntioTech UltraNode? Does Mercedes Benz share its findings with its battery suppliers?

Merrill, New Executive/Leader, Antiotech: Very good question. So the Mercedes Benz relationship and where we want it to go is around is 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. And 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. So the answer is we understand that they do. Who is that exactly?

And how do we get the introductions and actually get slotted into their their future designs and their production schedules is where we’re where we’re at with Mercedes. So that’s what we 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 the how does this all work and how can we make this happen. I’d I’d really like to make it clear that for the likes and and I don’t want to speak specifically about Mercedes Benz, but really for the European car car manufacturers, Chinese supply of batteries is what it’s all about. So 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, is putting Chinese components into their EVs. That is a much bigger economic and regulatory, if you like, framework that we must work within. So it’s possibly not well known just how extensive all the componentry is and how it comes out of China, and that’s the that’s the competition we’re facing. It’s very, very significant.

Simon, Moderator/Company Representative: Right. Thanks, Merrill. And just a question on how much Antiox is provided to Mercedes Benz for manufacturing trials, and what’s the status towards a design phrase and final decision?

Merrill, New Executive/Leader, Antiotech: Okay. So this is exactly what I was just talking about. So Antiox Antiox is a component in the overall design. So very small quantities for testing in laboratory at laboratory scale. And in terms of Mercedes, and everyone will be really aware of this, they are part of ACC, so a group around Gigafactory establishment in in Europe, and and that is on shaky ground.

So, yeah, we’re sort of somewhat behest to how Mercedes, it’s exactly like the last question, which is how do we get into that system where where we need to get an update and we need to know what is really happening. Now many, many people are asking the same questions as us. It’s and and that will come through with our strategy around how we see us capitalizing on the work that we’ve done with Mercedes and and where things are shifting. It’s just a bit early for us to be able to say that because of the strategic review.

Simon, Moderator/Company Representative: Right. Thanks, Merrill. And just a question just around commercial progress. What progress has been made with other major EV companies?

Merrill, New Executive/Leader, Antiotech: Yep. Yep. I think we that in the past, we’ve been pretty clear that engagement with OEMs has been and in fact, you know, everyone’s aware of engagement with OEMs has been on the cards. And I I very in writing the quarterly report, I wanted to be very clear that there is some pullback in in in commitments around where things are going, particularly in the high silicon side of things. And 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.

So it’s not that they’re going away. It’s just that things are going slower. And as a company and a small Australian based company, we need to be flexible, nimble, and work on how we can get in the systems around email ability, for example, that may be going faster at this time. So that’s all that’s everything that’s being reviewed under the strategy review.

Simon, Moderator/Company Representative: Right. Thanks, Mel. And just a question further just around commercial progress on consumer electronics companies. I know you spoke to just about e bikes, etcetera, but Yep. Where does that stand at the moment as well?

Merrill, New Executive/Leader, Antiotech: Yep. No. No. We obviously, we have our our vice president of sales, Fabian Beck, in Germany, and he has a very deep consumer battery experience base through his work at Vata and his contacts in that area. So, 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.

And, again, time it takes for validation, new design, to your previous question, which is around in the manufacturing’s into the manufacturing process. It is it there is a time frame involved in that. And as I’ve said before, six months minimum, two years to fully validate. So how can we work around that with customers that are already up the learning curve where we can expedite those processes? So the answer is yes.

It is a focus.

Simon, Moderator/Company Representative: Alright. Thank you, Merrill. And just a couple of final questions around commercial progress, just specifically around carbon nanotube companies and and chemical companies.

Merrill, New Executive/Leader, Antiotech: Yeah. Carbon nanotubing. So I think what I’ve already explained is that we are taking taking on board the context of the markets that we’re working in, and that relates to how could we diversify, and that’s what this question is really about. In the chemicals companies, this is a big focus. And as we said in the quarterly, we’re in a we’re engaging with three global companies who all already supply into battery manufacturers.

Because, again, this is about what can we do as a small company with our expertise and our networks. So by leveraging off that and their established customer base and their testing programs and NTOX being added into those testing programs is what we’re seeking to do through distributorships and partnerships, and that’s where we’re going. So chemical companies in particular who are already who are great quantums larger than us, who are already established are as I said in the quarterly, we’re already engaging with them and we we’re looking to do for that further. Diversification is I guess, I’ve already we’re already referred to that is something we’re looking at. Yes.

Simon, Moderator/Company Representative: Perfect. Thanks, Merrill. And just we’ll move to just around strategic sales and commercial outcomes. Mhmm. Just a question.

Given past guidance on imminent commercial deals, why have signed contracts not yet materialized, and what specific barriers have been encountered?

Merrill, New Executive/Leader, Antiotech: Yeah. Okay. So this is a I have as part of coming into this role, I’ve obviously reached out to my networks in the sector around the current status of in different parts of the battery componentry and where what they’re seeing, how it’s going for them. And, you know, it does it’s not great for our shareholders to hear that we’re not alone. It’s a 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, you know, 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. So 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. So that comes back to commercially. Some 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 it across the line is a time frame that is sometimes not in our court. It is with other parties who have other issues going on. And the it’s a very challenging market that our end customers are facing in terms of their flexibility, their nimbleness as well. So there isn’t one reason, one specific reason we have standard processes we go through. But all I can say is I acknowledge that there’s an expectation there and the frustration.

But every that’s every every avenue, every potential we are moving forward with. So hope to sign and I that’s No.

Simon, Moderator/Company Representative: I think you again, noting your one week in Meryl and just with the intention to to ask as many of the questions that have been submitted. I think you’re doing a great job. So we’ll keep we’ll keep going just just around at what point will AntioTech consider walking away from quote, unquote, tire kickers to focus on serious partners?

Merrill, New Executive/Leader, Antiotech: Right. Well, that is is a really good question and very critical that we are using our very limited resources to the best effect. So I’m I’m going to be work I’m 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. And I’m hoping that I can bring some of the networks that I 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 gonna be focused on in the next month or so.

Simon, Moderator/Company Representative: Great. Thanks, Merrill. Just a question just around funding and grants. When does Antotech expect to receive funding from QIC and Arena?

Merrill, New Executive/Leader, Antiotech: Yeah. Okay. So that really as everyone knows, that’s that’s matching funds, and it will also come down to how the strategy falls out. So bear with me with that one because, you know, we wanna do every do everything that makes sense around rolling out our products and commercialization. So bear with me on that.

We’re still reviewing that. And I I guess yeah. So, Simon, I guess that that also might lead into life sciences. I’ll leave that one with you.

Simon, Moderator/Company Representative: Correct. That’s that’s the next the next question. So just around the Serum Institute of India. Mhmm. Is it purchasing anti bind at a rate higher than the minimum defined in the agreement?

Merrill, New Executive/Leader, Antiotech: Yeah. So, yes, they’re at a run rate of anti abiant that is higher than was anticipated. In fact, they’ve used their full 12 what we originally sold for the twelve months in six months. So we are looking forward to to further further orders coming through. In fact, there’s been a recent visit to to meet with them, and they’re coming to see us as well.

Now that’s that’s around usage, but they’re also developing they’re diversifying into new tests. So there’s lateral lateral flow based tests being developed. And the good thing about our Serum Institute relationship is that they’ve introduced us to other parties who are also developing new tests. So I’d say we’re really looking forward to to meeting with them here at the office and deepening that relationship.

Simon, Moderator/Company Representative: Great. Thanks, Maroon. Just another question just around the diversification of antibiotic usage within the Serum Institute of India’s product lines. Has this been achieved?

Merrill, New Executive/Leader, Antiotech: Yeah. So that 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, the the 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 we’re up to Vidcare, and I know there were some questions there as well. So that’s where with Vidcare, we’re in testing.

And there’s been real serious engagement and a deepening of that relationship as well. So there’s the team was for two up for two weeks in India doing optimization assay technology training. And where what 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 large for approvals for us to then go into larger scale production. So I know that there were some questions about where are we up to? When is that all gonna happen?

It’s essentially a ASAP type situation. So everything going through that stage process is is being watched by the team, managed on a daily basis.

Simon, Moderator/Company Representative: Alright. Thanks, Mineral. And 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?

Merrill, New Executive/Leader, Antiotech: Yep. So there are a number of high value research groups that are evaluating anti bind. So there’s some of those are in the medical device field for for those who are specifically interested in what we’re doing in life sciences. And we as part of the strategy, we’re also looking at deep deepening and expanding our our relationships in terms of distributors and opportunity finding. So we’ve got a whole piece which we’re we’re trying to pull together, and we’ll be able to communicate more fulsomely on.

But the the the last trip did expand in our pipeline. And I guess the one really key message that Gautam has shared with me is that they’re very the the people we’re working with are very well credentialed, very well regarded. This is part of our process, which someone asked again about tyrekickers, part of the our process of making sure that we’re working with the right parties to really get us into the system and up and running.

Simon, Moderator/Company Representative: Thanks, Marilyn. Just final question around life sciences. How does the team plan to address these opportunities and grow the customer base?

Merrill, New Executive/Leader, Antiotech: Yeah. That would be part of the strategy review again of making sure that we’ve got that we’re rightsizing that team, got the right skills in that team, and we’re really clear about the opportunities we’re going after.

Simon, Moderator/Company Representative: Perfect. And just leading into more of a a corporate and sales and commercial team discussion. Can we just have an update on the progress of of Fabian Beck as the VP of international sales?

Merrill, New Executive/Leader, Antiotech: Yep. Excellent. Yep. So Fabian and I have been talking on a very regular basis as we’ve gone through these changes. And 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.

So we will very much rely on him and his 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.

Simon, Moderator/Company Representative: Thanks, Merrill. And I understand there’s a strategic review underway, so this probably leads into this. But is is there an intention to review staffing and costs based on performance?

Merrill, New Executive/Leader, Antiotech: Absolutely. Across the strategic view, it’s everything from costs, revenue streams, which we’ve been talking about, which is the marketing, sales, and communication thereof. And also, we’ve already talked about that around investment. So in terms of customers, some of the customers we’re talking to, particularly on the on the chemical companies and battery materials companies, are also potentially strategics that we would we are seeking to engage with. So it’s across cost, revenue, and investment, and how to manage our overall our resource base and our cash flow.

So the answer is everything is on a table, and we are looking to to to be able to come out to the market with how we’ve changed things or how we’ve rearranged things very shortly.

Simon, Moderator/Company Representative: Great. Thanks, Let me know. And I’m just pivoting back just around intellectual property to make sure that we’ve covered this as well. When when’s the alternate patents expected to be granted?

Merrill, New Executive/Leader, Antiotech: With that one. Sorry. I’m not that one, I’ll come back to. So Yeah. No.

Simon, Moderator/Company Representative: That’s fine. Again, any question that we haven’t comprehensively covered or if you did have any more questions, more than happy to receive emails and come back on those. So apologies if we can’t get to everything. Merrill’s trying her utmost, so we’ll come back on that as well. And then, again, we’ll just come back on on any feedback around patent lawyers that they’ve provided as well as some of the discussions around Antiox being registered under REACH.

But if we just go now to just around the company’s website, you know, company image and operations, when will that be updated and improved? And I can probably cover that one. We’re currently working overtime in terms of, yeah, updating that and ensuring that it reflects the current operations. So standby and and watch that space. But more so probably for you, Merrill, just around shareholder communication.

Can shareholders expect clearer, more regular updates on the true state of commercial prospects?

Merrill, New Executive/Leader, Antiotech: Yep. That that’s really good. It’s probably a good good place for me just to to to circle back around and and really make sure I I clearly message that, you know, 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. And as I said, we 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 on 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 down focusing in our message about what it is that we offer. And the very, very significant improvements that Antiox can deliver, as well as working with partners around where Ultranode can fit into their manufacturing processes. So I I as as as we’ve already said, I will I’m looking forward to coming back more fulsomely on a strategy that we plan to execute. And we’re, you know, really looking forward to engaging. We’ve got our our investor relations email for anyone to send in questions that they have that haven’t been answered today or ongoing questions.

And I I really like to thank you again. I’d like to thank everyone on the call and everyone all of our shareholders for their support, And we we’re really looking forward, but I don’t know how say it better, to to getting stuck in and and very committed to delivering shareholder value.

Simon, Moderator/Company Representative: Great. It’s been comprehensive. And as as I said, from the top, in terms of Merrill just starting, we did wanna ensure that we asked and addressed as many possible questions. So, hopefully, we’ve done that. But if we haven’t, more than happy, as Merrill said, in terms of having any submitted questions on on the email, and we’ll endeavor 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 the mail out system that we do have, So around, you know, different conferences that we’re attending and and presentations that are included on those. We’ll endeavor to communicate with shareholders so that they’re across it. But, Merrill, well done. And if and if there’s any further questions, as I said, please just send them through. But thanks all for attending.

There’s a lot on the call. And, Meryl, well done again. Thank you very much.

Merrill, New Executive/Leader, Antiotech: Thank you. Thanks to everybody.

Simon, Moderator/Company Representative: Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.