Q4 2026 Alexium International Group Ltd Earnings Call

September 8, 2026

Speaker #1: Welcome to Zoom. Enter your meeting ID, followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting.

Heather McClain: Driven by a production issue in the last quarter that has since been resolved but did drive some inventory write-offs. Operating expenses increased as expected with the acquisition, and there were also some impairments that were recorded in FY25 as well. The total result for FY26, if we normalized it by excluding the effect of the impairments, would've been approximately AUD 4.5 million versus the AUD 6.2 million that you see here, which would be much more in line with FY25 results. Billy?

Heather McClain: Driven by a production issue in the last quarter that has since been resolved but did drive some inventory write-offs. Operating expenses increased as expected with the acquisition, and there were also some impairments that were recorded in FY2025 as well. The total result for FY2026, if we normalized it by excluding the effect of the impairments, would've been approximately AUD 4.5 million versus the AUD 6.2 million that you see here, which would be much more in line with FY2025 results. Billy?

Speaker #2: This was driven by a production issue in the last quarter. That has since been resolved but did result in some inventory write-offs. Operating expenses increased, as expected, with the acquisition, and there were also some impairments.

Speaker #2: That were recorded in fiscal year '25 as well. The total result for fiscal year '26, if we normalized it by excluding the effect of the impairments, would have been approximately $4.5 million versus the $6.2 million that you see here, which would be much more in line with fiscal year 2025 results.

Speaker #2: Billie?

Speaker #3: Thank you, Heather. So, under the trading update, with production restored at Dayton and a strengthened leadership team added, we're now ramping up volumes from manufacturing and sales of our micro-encapsulated PCM and flame-resistant coatings.

Billy Blackburn: Thank you, Heather. Onto the trading update. With the production restored at Dayton and we've added strengthened leadership to the team, we're now ramping volumes from manufacturing and sales of our microencapsulated PCM and flame-resistant coatings. We have a forecast for the rest of the year that's going to be trending growth month-over-month, driven mostly by the Cornerstone in Dayton and consolidating our manufacturing there, gaining the efficiencies and cost savings through that. For the acquisition, we had early setbacks from taking over the facility. We've been at the helm since really the beginning of February. We took on the plant as is, where is. It was an asset transaction. We were very interested in the technology and the manufacturing assets and capabilities, as well as the team.

Speaker #3: We have a forecast for the rest of the year that's going to be trending growth, month over month, driven mostly by the cornerstone in Dayton and consolidating our manufacturing there, gaining the efficiencies and cost savings through that.

Speaker #3: So for the acquisition, we had early setbacks from taking over the facility. We've been at the helm since really the beginning of February, and we took on the plant as is, whereas it was an asset transaction.

Speaker #3: And we were very interested in the technology and the manufacturing assets and capabilities, as well as the team. Early on, we learned that the plant had some work to be accomplished—some preventative maintenance, some deeper maintenance—and just the general operation needed some attention.

Billy Blackburn: Early on, we learned that the plant had some work to be accomplished, some preventative maintenance, some deeper maintenance. Just the general operation needed some attention, as did the team. It's pretty natural when you take over a facility, you have a season of integration. We were very aggressive in looking to move volumes from contract manufacturing into the integrated manufacturing from the acquisition in Ohio. Early on, we found some problems in the plant that set us back. We had to turn our attention to fixing the processes, fixing some of the procedures related to them, and getting back into some training with the team. I'm happy to report we've now stabilized that and have returned to normalized daily operations and are ramping the volumes there as we sit here.

Speaker #3: As did the team. So it's pretty natural, when you take over a facility, to have a season of integration. We were very aggressive in looking to move volumes from contract manufacturing into the integrated manufacturing from the acquisition in Ohio.

Speaker #3: Early on, we found some problems in the plant that set us back, so we had to turn our attention to fixing the processes, fixing some of the procedures related to them, and getting back into some training with the team.

Speaker #3: I'm happy to report we've now stabilized that and have returned to normalized daily operations, and are ramping the volumes there as we sit here.

Billy Blackburn: We expect that to continue throughout the rest of the year, and we've got a KPI, a key goal for the year, to move 80% of our formulated products to the Ohio facility by the new year. Around January, we expect to have 80% of that concentrated in Ohio. As a reminder, we've been reporting this for some time. The manufacturing strategy remains to mix our production for redundancy and expanded capacity to have contract manufacturing and in-house manufacturing. The ability to produce at two sites and have redundancy across the formulated products, and many of the microencapsulated products. We've also implemented new quality control standards at the new plant. We're now putting volume through at lower raw material costs despite disruptions geopolitically, and some price increases we've taken in on raw materials.

Speaker #3: We expect that to continue throughout the rest of the year, and we've got a KPI—a key goal for the year—to move 80% of our formulated products to the Ohio facility by the new year.

Speaker #3: So, around January, we expect to have 80% of that concentrated in Ohio. As a reminder, we've been reporting this for some time. The manufacturing strategy remains to mix our production for redundancy and expanded capacity, to have contract manufacturing and in-house manufacturing.

Speaker #3: So, the ability to produce at two sites and have redundancy across the formulated products, and many of the micro-encapsulated products. We've also implemented new quality control standards at the new plant.

Speaker #3: We're now putting volume through at lower raw material costs, despite disruptions geopolitically. And with some price increases we've taken in on raw materials, we're still operating with some of our key, larger-volume raw materials under those of the business that we bought back earlier this year from MicroTech.

Billy Blackburn: We're still operating with some of our key larger volume raw materials under those of the business that we bought back earlier this year from Microtek. All of this is going to culminate in a more competitive position for the business. Right now it's about ramping those volumes, and stabilizing the sales from that manufacturing. The technical team has also vetted the new technologies that came with the acquisition. With that, we got three new PCM technologies that we're now ramping production on and pushing into the market. That's two different types of microencapsulated shells, so new shell technologies for microcapsules, and then a multitude of different temperature cores, different melt points, that position phase change materials for different cooling applications in different markets, especially outside of bedding. You're going to hear that from me tonight.

Speaker #3: All of this is going to culminate in a more competitive position for the business. Right now, it's about ramping those volumes and stabilizing the sales from that manufacturing.

Speaker #3: The technical team has also vetted the new technologies that came with the acquisition. With that, we got three new PCM technologies that we're now ramping up production on and pushing into the market.

Speaker #3: That's two different types of micro-encapsulated shells—so, new shell technologies for micro-capsules. And then a multitude of different temperature cores, different melt points that position phase-change materials for different cooling applications in different markets.

Speaker #3: Especially outside of vetting, you're going to hear that from me tonight. We're still focused on delivering success within the concentrated vetting market where Alexium has historically operated.

Billy Blackburn: We're still focused on delivering success within the concentrated bedding market where Alexium has historically operated. But we're also pushing into adjacent markets, and I'll give some updates along those lines tonight. One of the major shifts over the last quarter has been in the organization chart and the addition of leadership. With Heather being on the team now for around 9 months, she's brought some real stability to the financial team and to the planning and the daily management of the business. That's freed me up to focus more on commercial and operational pursuits. We recently appointed Randy Lane as our Chief Operating Officer, and that was in July. Randy is historically the president of Microtek.

Speaker #3: But we're also pushing into adjacent markets, and I'll give some updates along those lines tonight. One of the major shifts over the last quarter has been in the organization chart and the addition of leadership.

Speaker #3: With Heather being on the team now for around nine months, she's brought some real stability to the financial team, and to the planning and daily management of the business.

Speaker #3: That's freed me up to focus more on commercial and operational pursuits. We recently appointed Randy Lane as our Chief Operating Officer, and that was in July.

Speaker #3: Randy is historically the president of MicroTech. He's been away from MicroTech for the last five to six years, and rejoined Alexium in the PCM business. He joined Alexium two years ago and has been on our board for the majority of the last two years.

Billy Blackburn: He's been away from Microtek for the last 5 to 6 years and rejoined Alexium in the PCM business, joined Alexium 2 years ago, has been on our board for the majority of the last 2 years. As we went out to look for operational leadership, it was the natural selection to bring Randy in and ask him to take over the operations. He's local to the business in the Ohio area, very familiar with the people, the processes, and the operations in whole. We're happy to have him on the team, and he's already making a significant difference there. You'll see that trending in the results as the months come. Also, Nicholas Leitner is our technology lead, and he's been very integral in vetting all the technologies that came with Microtek and some of the new technologies that are coming out of the legacy Alexium.

Billy Blackburn: He's been away from Microtek for the last five to 6 years and rejoined Alexium in the PCM business, joined Alexium two years ago, has been on our board for the majority of the last 2 years. As we went out to look for operational leadership, it was the natural selection to bring Randy in and ask him to take over the operations. He's local to the business in the Ohio area, very familiar with the people, the processes, and the operations in whole. We're happy to have him on the team, and he's already making a significant difference there. You'll see that trending in the results as the months come. Also, Nicholas Leitner is our technology lead, and he's been very integral in vetting all the technologies that came with Microtek and some of the new technologies that are coming out of the legacy Alexium.

Speaker #3: And as we went out to look for operational leadership, it was a natural selection to bring Randy in and ask him to take over the operations.

Speaker #3: He's local to the business in the Ohio area, very familiar with the people, the processes, and the operations as a whole. So we're happy to have him on the team, and he's already making a significant difference there.

Speaker #3: And you'll see that trending in the results as the months come. Also, Nick Leitner is our technology lead, and he's been very integral in vetting all the technologies that came with MicroTech and some of the new technologies that are coming out of the legacy Alexium.

Speaker #3: So we're rolling out really new microcapsules in the new industry, and we've leveraged some of the technology that came with MicroTech to open some of those doors.

Billy Blackburn: We are rolling out really new microcapsules into new industries, and we have leveraged some of the technology that came with Microtek to open some of those doors. Some of the shells that are used in other markets are different than those used in the furniture and bedding space. We are starting to push those out and getting a lot of interest in other markets. We have a new plant manager that has been hired. They are starting next Monday.

Speaker #3: Some of the shells that are used in other markets are different from those used in the furniture and bedding space. So we're starting to push those out and getting a lot of interest in other markets.

Speaker #3: We have a new plant manager who has been hired. They're starting next Monday. This is a very significant hire for us because that plant has been without a plant manager for years now.

Billy Blackburn: This is a very significant hire for us because that plant has been devoid of a plant manager for years now, and we brought in a very seasoned operations professional that is going to give hands-on leadership and work within the plant, work within the team, to drive the efficiencies each day, to drive quality, and to bring a safety culture that is compliant with all the state and federal regulations here in the US. We are very excited to have him joining next week. I will announce that publicly before the next webinar, the person's name. Continuing with the trading update in the sales and technology area. The new PCM coating placements that we have been signaling for some time now are now ramping, and majority of that production has been repositioned to the Ohio facility. We are ramping up PCM for nonwovens for a placement with a large international brand.

Speaker #3: And we brought in a very seasoned operations professional that's going to give hands-on leadership and work within the plant, work within the team, to drive the efficiencies each day.

Speaker #3: To drive quality, and to bring a safety culture that's compliant with all the state and federal regulations here in the U.S. So we're very excited to have him joining next week.

Speaker #3: I will announce that publicly before the next webinar, [person's name]. So, continuing with the trading update and the sales and technology area, the new PCM coating placements that we've been signaling for some time now are ramping up, and the majority of that production has been repositioned to the Ohio facility.

Speaker #3: We're ramping up PCM for nonwovens for a placement with a large international brand. So that bed we saw in Las Vegas—it was showing in the Las Vegas World Market.

Billy Blackburn: That bed, we saw it in Las Vegas. It was showing in the Las Vegas global market. It is a beautiful product. We are excited to see the sales increase there. We have gone to week-over-week shipments as that program is ramping now. We have also been talking some time about our entries into the foam market, specific to bedding. That is AlexiPCM coatings and MPCMs infused into foam. As a reminder, Alexium was historically very concentrated in bedding, very concentrated in MPCM, and also very concentrated in just textiles. We have now diversified that into foam in addition to textiles. We are also moving that into other areas with FR as well. Starting to diversify within the concentrated market of bedding, the product mix, and the customer mix, because not all customers are making foam beds. The foam market is one of the fastest-growing areas for bedding.

Speaker #3: It's a beautiful product. We're excited to see the sales increase there, and we've gone to week-over-week shipments as that program is ramping now.

Speaker #3: We've also been talking for some time about our entries into the foam market, specifically with vetting, and that's MPCM coatings and MPCMs infused into foam.

Speaker #3: As a reminder, Alexium was historically very concentrated in bedding, very concentrated in MPCM, and also very concentrated in just textiles. We've now diversified that into foam in addition to textiles.

Speaker #3: We're also moving that into other areas with FR as well, so starting to diversify within the concentrated market of vetting—the product mix and the customer mix—because not all customers are making foam beds.

Speaker #3: And the foam market is one of the fastest-growing areas for vetting. So we've had some good success recently with topical coatings and infused PCM in that space.

Billy Blackburn: We have had some good success recently with topical coatings and infused PCM in that space. I am happy to report we are also having some success on FR and foam and textile as well. We have volumes ramping in that area throughout the rest of FY27. We will be trending that and showing the advancement of sales and those placements and some of the announcements tied to them in the next 4C. Excited to announce that we have got our first placement of our FR technology, AlexiShield, and that is for foam in the furniture space outside of bedding.

Speaker #3: I'm happy to report we're also having some success on FR and foam and textile as well, so we have volumes ramping in that area.

Speaker #3: Throughout the rest of FY27, we'll be tracking and showing the advancement of sales and those placements, as well as some of the announcements tied to them in the next four quarters.

Speaker #3: Excited to announce that we've got our first placement of our FR technology at Alexius Shield, and that's for foam in the furniture space outside of bedding.

Speaker #3: We actually got that to a foam coating to a customer that was launching and ramping production that had been moved to the US from Asia.

Billy Blackburn: We actually got that to a foam coating to a customer that was launching and ramping production that had been moved to the US from Asia, and they were failing the US regulatory burns. We were able to step in and add a coating to the product and get it over the finish line, and it passed quite well. That is starting shortly. We got our first order for it last week. We will start shipping in the next few weeks, and we anticipate that to ramp throughout the rest of the fiscal year as well. Most notably, that is a large space in furniture worldwide. Now, having that successful placement and knowing that the product works there, we will increase our marketing and sales efforts across the globe to find more placements for foam for AlexiShield. As a reminder, AlexiShield is our latest FR coating.

Speaker #3: They were failing the US regulatory burns, and we were able to step in and add a coating to the product to get it over the finish line.

Speaker #3: And it passed quite well, so that is starting shortly. We got our first order for it last week, and we'll start shipping in the next few weeks.

Speaker #3: And we anticipate that to ramp throughout the rest of the fiscal year as well. Most notably, that’s a large space in furniture worldwide. So, now having that successful placement and knowing that the product works there, we’ll increase our marketing and sales efforts across the globe to find more placements for foam for Alexium Shield.

Speaker #3: And as a reminder, Alexius Shield is our latest FR coating. We developed it a couple of years ago in response to regulatory pressures from the U.S. on banned substances.

Billy Blackburn: We developed it a couple of years ago in response to regulatory pressures from the US on banned substances, so it is free of any current banned and any proposed banned substances. Also, it is very suitable for other continents that are a little more progressive than the United States in the regulatory area for furniture and bedding. Places like Australia and Europe, it is suited for placement in those markets as well. We also have several active projects for non-bedding PCM placements. Those are in construction materials and energy conservation, also for transportation for FR. Many of these were catalyzed by the Microtek acquisition, and that opened up several adjacent market potentials for the microcapsules that we make at that facility.

Speaker #3: So, it's free of any current banned and any proposed banned substances. Also, it's very suitable for other continents that are a little more progressive than the United States in the regulatory area for furniture and vetting.

Speaker #3: Places like Australia and Europe are suited for placement in those markets as well. Okay. We also have several active projects for non-vetting PCM placements.

Speaker #3: Those are in construction materials and energy conservation, and also for transportation for FR. Many of these were catalyzed by the MicroTech acquisition, and that opened up several adjacent market potentials for the microcapsules that we make at that facility.

Speaker #3: They had a very good SEO marketing engine, and they were getting a lot of leads and requests from development houses and research institutions looking for new products.

Billy Blackburn: They had a very good SEO marketing engine, and they were getting a lot of leads and requests for development houses and research institutions looking for new products for thermal management. Also, we have gotten a lot of requests also through there for FR in adjacent spaces. We are looking to push into non-bedding markets. The US bedding market remains depressed. Consumer confidence, it remains low. Despite that, we are gaining ground in the space through foam and through FR diversification. Lastly, we have a large placement about to commence this fall, which would be our October, November, and that is for an MPCM coating in furniture upholstery. So another adjacent market where we are placing PCM finished textiles into furniture. We expect it to be a large volume. These furniture products are made worldwide in multiple continents, and it drives significant volume.

Speaker #3: For thermal management. And also, we've gotten a lot of requests through there for FR and adjacent spaces. So we're looking to push into non-bedding markets.

Speaker #3: The US vetting market remains depressed. Consumer confidence remains low. Despite that, we're gaining ground in the space through foam and through FR diversification. And then lastly, we have a large placement about to commence this fall, which would be in October or November.

Speaker #3: And that's for an MPCM coating in furniture upholstery. So, another adjacent market where we're placing PCM-finished textiles into furniture. We expect it to be a large volume.

Speaker #3: These furniture products are made worldwide, across multiple continents, and they drive significant volume. So, we anticipate giving a more material update around that in the next update, which will be in the Q4.

Billy Blackburn: We anticipate giving a more material update around that in the next update, which would be in the 4C. But that project is progressing nicely, and we are starting to see the forecast as we move in towards the new calendar year. The general commercial update, we brought process across all three commercial platforms, our MPCM, AlexiShield FR, and AlexiFlam. We have new customer requests in furniture, building materials, and energy conservation, as well as apparel. For the furniture piece, it has been cooling and also FR products for protection. In the building materials, it has been for thermal management. We are getting a lot of requests right now for our products to go into as an additive into products that basically buffer the energy demand and energy spike in buildings, in the heating and cooling cycle of each sun up, sun down. Also energy conservation around electronics.

Speaker #3: But that project is progressing nicely, and we're starting to see the forecast as we move in towards the new calendar year. So the general commercial update—we brought progress across all three commercial platforms.

Speaker #3: So, our MPCM, Alexius Shield FR, and Alexius Slam—we have new customer requests in furniture, building materials, energy conservation, as well as apparel.

Speaker #3: For the furniture piece, it's been cooling, and also FR products for protection. In the building materials, it's been for thermal management. We're getting a lot of requests right now for our products to go in as an additive into products that basically buffer the energy demand and energy spike in buildings during the heating and cooling cycle of each sun-up, sun-down.

Speaker #3: Also, energy conservation around electronics. As you know, data centers are a real hot button in the United States. And one of the things data centers are looking for is ways to cut energy costs and to cool the equipment, requiring less HVAC cooling and fans.

Billy Blackburn: As you know, data centers is a real hot button in the United States. One of the things data centers are looking for is ways to cut energy costs and to cool the equipment where it requires less HVAC cooling and fans. Lastly, we have been getting requests for cooling in apparel. Those are a little further down the line, where we are working on more wash durable microcapsules that can be infused in the yarns. That is a little further down the line, but it is a very novel request, something we get quite often. We are now starting to make inroads into our microcapsule thermal stability to the point where we can get to infusing it to fibers, which requires extremely high heat. That has been one of the deterrents in the past. We are starting to get that sorted out now.

Speaker #3: And then, lastly, we've been getting requests for cooling and apparel. Those are a little further down the line, where we're working on more wash-durable microcapsules that can be infused into yarns.

Speaker #3: So that's a little further down the line, but it's a very novel request—something we get quite often. We're now starting to make inroads into our microcapsule thermal stability to the point where we can get to infusing it into fibers, which requires extremely high heat.

Speaker #3: And that's been one of the deterrents in the past. We're starting to get that sorted out now, where we can start to look at that.

Billy Blackburn: We are starting to look at that, and that would ultimately result in wash durable phase change cooling coatings. We validated production in Ohio for all of our formulated PCM coatings at this point. What does that mean? That means we can make our AlexiCool product lines, our BioCool product lines, all of them have now been approved for production and have been run at production scale in Dayton. That paves the way for us to hit the goal of moving 80% of that type of production to Dayton by the end of the year. The reason we want to do that is for cost control, quality control, and full utilization of the fixed costs and assets that we have acquired. We had a bit of a stumble out of the gate, but we have regained our footing now.

Speaker #3: And that would ultimately result in wash-durable, phase-change cooling coatings. So we validated production in Ohio for all of our formulated PCM coatings at this point.

Speaker #3: So what does that mean? That means we can make our LexiCool product lines, our BioCool product lines— all of them have now been approved for production and have been run at production scale in Dayton.

Speaker #3: So that paves the way for us to hit the goal of moving 80% of that type of production to Dayton by the end of the year.

Speaker #3: And the reason we want to do that is for cost control, quality control, and full utilization of the fixed costs and assets that we've acquired.

Speaker #3: So we had a bit of a stumble out of the gate, but we've regained our footing now, and we're regaining the momentum that was lost over the last three to four months.

Billy Blackburn: We are regaining the momentum that was lost over the last 3 to 4 months, which puts us back on plan for mid-year into the new year to start to hit some of the milestones that we have committed to. International mPCM business is continuing to grow. It grew throughout Q4 of FY26. We have some new specialty foam starts coming in Europe later this H1 and towards December. There were several legacy customers that came with the adjacent Microtek business that had not had a lot of attention or development work turned their way. We reinvigorated that, and our development team is working with them, and our sales team to qualify those opportunities. Again, those are in adjacent markets like building materials and energy conservation. New segments in the heavy industrial sector are definitely opening up new opportunities.

Speaker #3: Which puts us back on plan for mid-year into the new year, to start to hit some of the milestones that we've committed to. International MPCM business is continuing to grow.

Speaker #3: It grew throughout the fourth quarter of FY26. And then we have some new specialty foam starts coming in Europe later this first half and towards December.

Speaker #3: There were several legacy customers that came with the adjacent MicroTech business, who hadn't had a lot of attention or development work turned their way.

Speaker #3: So, we reinvigorated that, and our development team is working with them, and our sales team is qualifying those opportunities. Again, those are in adjacent markets like building materials and energy conservation.

Speaker #3: And then new segments in the heavy industrial sector are definitely opening up new opportunities. We've gotten two bid requests recently to bid on development work for, again, energy conservation.

Billy Blackburn: We have gotten 2 bid requests recently to bid on development work for, again, energy conservation, and these are large utilities. We do not know exactly what their end application is yet, but we believe they are looking at cooling in large electrical demand applications, such as data centers and large metropolitan markets. For AlexiShield, again, we are happy to have our first placement in furniture on foam. AlexiShield is also suitable for textiles, so we are developing barriers that go into beds and furniture that are textile barriers that self-extinguish. We are also doing coatings that are directly applied to foam. The flammability of foam has led us, and the regulation of materials that gets put into foam has led us to make those more priorities because they are more urgent needs.

Speaker #3: And these are in large utilities. We don't know exactly what their end application is yet, but we believe they're looking at cooling in large electrical demand applications, such as data centers and large metropolitan markets.

Speaker #3: For Alexius Shield, again, we're happy to have a first placement in furniture on foam. Alexius Shield is also suitable for textiles. So we are developing barriers that go into beds and furniture—these are textile barriers that self-extinguish.

Speaker #3: We're also doing coatings that are directly applied to foam. The flammability of foam, and the regulatory regulation of materials that get put into foam, has led us to make those more of a priority because they're more urgent needs.

Speaker #3: And generally, the new entries that we're getting there are moving quickly because we're solving a problem that's imminent for these companies—one that's precluding them from launching and rolling out products.

Billy Blackburn: Generally, the new entries that we are getting there are moving quickly because we are solving a problem that is imminent to these companies that is precluding them from launching and rolling out products. We have been able to leverage our material being free of banned substances and also solving a real-world problem for these customers that actually has a large market tied to it. Quite excited about that. AlexiGuard is our other formula. It does contain organophosphorus, which was banned in furniture and bedding but is not banned in other coatings in the construction area and other FR coatings and industrial applications. We are going to continue marketing that and trying to grow that placement as well. It is also a very good additive to materials, has a softener and an FR, so it has dual duty there. We are looking for growth in furniture.

Speaker #3: So we've been able to leverage our material being free of banned substances, and also solving a real-world problem for these customers that actually has a large market tied to it.

Speaker #3: So, quite excited about that. LexiGuard is our other formula. It does contain organophosphorus, which was banned in furniture and bedding, but it's not banned in other coatings in the construction area and other FR coatings and industrial applications.

Speaker #3: So, we're going to continue marketing that and trying to grow that placement as well. It's also a very good additive to materials as a softener and an FR.

Speaker #3: So it has dual duty there. And then again, we're looking for growth in furniture. Lastly, we have a large project in the development cycle.

Billy Blackburn: Lastly, we have a large project in the development cycle. We are moving to third-party testing now, and that is for FR coatings on transportation foam. Think large-scale transportation like trains, planes, and buses, where there is a lot of foam used in a lot of seating. Also, foam used in sound dampening and insulation in those vessels. We are in late stages of testing on that, and hopefully we can give some commercial updates to some starts there in the coming quarters. Lastly, AlexiFlam, and our number 1 target for AlexiFlam is the wash durable FR coating for flame resistant nylon cotton, as we often call it, FR NyCo. We are in the late stages of limited user evaluations with the US Army, with the Department of Defense in the States. Those tests have been conducted for the last 6 months in Hawaii.

Speaker #3: We're moving to third-party testing now, and that's for FR coatings on transportation foam. So, think large-scale transportation like trains, planes, and buses, where there's a lot of foam used in seating.

Speaker #3: Also, foam is used in sound dampening and insulation, and those vessels. So we're in late stages of testing on that, and hopefully we can give some commercial updates to some starts there in the coming quarters.

Speaker #3: Lastly, AlexiFlam—and our number one target for AlexiFlam—is the wash-durable FR coating for flame-resistant nylon cotton, as we often call it, FR NICA.

Speaker #3: We're in the late stages of limited user evaluations with the US Army, with the War Department in the States. Those tests have been conducted for the last six months in Hawaii.

Speaker #3: We're still awaiting, with bated breath, the final results of the user wear tests. As soon as we have those, we'll know what worked, what didn't, if they want us to dial in certain attributes of the fabric, and if we're going back to the lab.

Billy Blackburn: We are still awaiting, with bated breath, the final results of the user wear tests. As soon as we have those, we will know what worked, what did not, if they want us to dial in certain attributes of the fabric, and if we are going back to the lab. It could be things like softening it, making it have more drape, which the fabric makes the fabric drape better, softer, less stiff. Also it could be in the area of breathability. They have asked for a lot of attributes of this fabric that have a balancing act tied to them. If you increase one, you have to decrease the other to meet the balance for all the reflectance and weight and breathability criteria. We put several in play with them, and it made it through to the testing. Again, we are waiting for those results.

Speaker #3: It could be things like softening it, making it have more drape—which makes the fabric drape better, softer, less stiff. And then also, it could be in the area of breathability.

Speaker #3: They've asked for a lot of attributes of this fabric that have a balancing act tied to them. If you increase one, you have to decrease another.

Speaker #3: To meet the balance for all the reflectance, weight, and breathability criteria, we put several in play with them, and it made it through to the testing.

Speaker #3: And again, we're waiting for those results. We anticipate them actually here in late September or early October, but we're at the mercy of the U.S. government and the Department of War's budget decisions, and any other decisions they might be making globally that could impact this.

Billy Blackburn: We anticipate them actually here in late September, early October, but we are at the mercy of the US government and the Department of Defense's budget decisions and any other decisions they might be making globally that could impact this. On to operations, we have had this plan out there since early this year. Again, this is along Alexium's pursuit of being a manufacturing-centric business. We are deep into that now. Again, we had some stumbles early on in taking over the plant. I will remind everyone, Alexium has been through an evolution over the last several years from really going from a technology development firm to a sales and marketing firm, pushing that technology into the market, to now becoming a manufacturing company, the sales and marketing pushing the volume to our own plant. So it has been quite an evolution for this young, small team.

Speaker #3: On operations, we've had this plan out there since early this year. Again, this is part of Alexium's pursuit of being a manufacturing-centric business.

Speaker #3: We're deep into that now. Again, we had some stumbles early on in taking over the plant. And I'll remind everyone, Alexium has been going through an evolution over the last several years, really moving from a technology development firm to a sales and marketing firm, pushing that technology into the market.

Speaker #3: So now we're becoming a manufacturing company that sells and markets, pushing the volume to our own plant. So it's been quite an evolution for this young, small team.

Speaker #3: And we have had our stumbles, but we have regained our footing, picked ourselves back up, and carried on. We've been lucky to have the good support of our investors and our board.

Billy Blackburn: We have had our stumbles, but we have regained our footing, picked ourselves back up, and carried on. We have been lucky to have the good support of our investors and our board and have the capability to do that. Things are starting to stabilize now in operations. We completed this earlier this year, and the goal remains to maximize the efficiency of the existing assets. That is not only capacity utilization, fill the plant up, it is also get the most out of each shift before we add another shift or add more headcount or fixed costs. We are deep into that pursuit right now.

Speaker #3: And have the capability to do that. So things are starting to stabilize now on operations. We completed this earlier this year, and the goal remains to maximize the efficiency of the existing assets.

Speaker #3: So that's not only capacity utilization—fill the plant up—it's also getting the most out of each shift before we add another shift, or add more headcount or fixed costs.

Speaker #3: So we're deep into that pursuit right now. The stumbles we had earlier were due to process inefficiencies and the poor condition of some of the equipment—not poor condition of the assets, but equipment that needed some love and care, maintenance—things like seals, pumps, and lines that had to be rejiggered, rebuilt, replaced; training; and industrial hygiene around cleanliness of lines.

Billy Blackburn: The stumbles we had earlier were due to the process inefficiencies, poor condition of some of the equipment, not poor condition of the assets, but it needed some love and care, maintenance, things like seals and pumps and lines that had to be rejiggered, rebuilt, replaced, training, industrial hygiene around cleanliness of lines. We had to go up that learning curve quickly this year to find ourselves where we are now, which is a much more stable place and ramping. We are deep into bucket 1 there, and we are filling up the first shift now. Microcapsules are running each day. Now we are running the formulating lines almost daily. As we continue to transition our formulated products from contract manufacturing to that plant, we anticipate the first shift to be probably maxed out by the holidays this year, around the new year.

Speaker #3: We had to go up that learning curve quickly this year to find ourselves where we are now, which is a much more stable place and ramping.

Speaker #3: So we're deep into bucket one there, and we're filling up the first shift now. Microcapsules are running each day, and now we're running the formulating lines almost daily.

Speaker #3: And as we continue to transition off formulated products from contract manufacturing to that plant, we anticipate the first shift to be probably maxed out by the holidays this year, around the New Year.

Speaker #3: That'll be the time to start thinking about capacity expansion through labor—meaning adding another shift, or a hybrid shift that crosses over the first.

Billy Blackburn: That will be the time to start thinking about capacity expansion through labor, meaning adding another shift or a hybrid shift that crosses over the first. From there, can we continue on to a third shift and then ultimately to 24/7? The sales revenue and volumes will dictate that. But we are being very measured in how we bring the business to the plant to allow the team to stabilize, to gel under the new leadership, the new quality programs, and for us to learn from some of the best practices they had in place over the years. They have been at the microcapsule business much longer than us. There is a lot of legacy knowledge there to harvest and leverage and a lot of experience. They needed support, they needed leadership, and they needed some new energy. We brought that, and now it is turning the corner.

Speaker #3: And then from there, can we continue on to a third shift and then ultimately to 24/7? The sales revenue and volumes will dictate that.

Speaker #3: But we're being very measured in how we bring the business to the plant, to allow the team to stabilize and to gel under the new leadership and the new quality programs, and for us to learn from some of the best practices they had in place over the years.

Speaker #3: They've been in the microcapsule business much longer than us. There's a lot of legacy knowledge there to harvest and leverage, and a lot of experience.

Speaker #3: They needed support. They needed leadership. And they needed some new energy. And so we brought that, and now it's turning the corner. Lastly, would be bucket three.

Billy Blackburn: Lastly, would be bucket 3. We max out the labor utilization. We will start looking at capital expenditures. When we say capital expenditures here, we really mean we are going to add significant capacity to the plant and maybe significant capabilities, and that could be drying capabilities, filtration, more reactors. We are making a lot of different types of capsules now that are taking us into different industries. Many of those industries have much larger volume demands than the bedding and furniture space. There is a chance that we may need bigger vessels on the front end of the process to keep up with that. But all are exciting prospects. But we are going to crawl before we walk before we run, and take a measured approach here, and apply the lessons learned in the first few months of running the operation. Q4 updates.

Speaker #3: We max out the labor utilization. We'll start looking at capital expenditures. And when we say capital expenditures here, we really mean we're going to add significant capacity to the plant and maybe significant capabilities.

Speaker #3: And that could be drying capabilities, filtration, more reactors. We are making a lot of different types of capsules now that are taking us into different industries.

Speaker #3: Many of those industries have much larger volume demands than the bedding and furniture space, so it's a chance that we may need bigger vessels at the front of the process to keep up with that.

Speaker #3: But all are exciting prospects. But we are going to walk—excuse me, crawl before we walk, walk before we run, and take a measured approach here.

Speaker #3: And apply the lessons learned in the first few months of running operations. So, Q4 updates: Look, NextTech and Alexi PCM, MPCM processes were merged in the third quarter of FY26.

Billy Blackburn: Look, Nextek and AlexiPCM and PCM processes were merged in Q3 of FY26. That rationalization created an optimized platform for drying microcapsules. We are selling powders into some other industries now, but also in the bedding industry, we are infusing powders into foam with customers that pour foam beds. Also, this integration of the two processes created an inefficiency between the two businesses merged, and better quality for formulated coatings, also lower costs. It also consolidated the market. That was two of the major microcapsule producers in North America merged into one, leaving three that we are aware of in North America, and less than 5 to 10 worldwide. We have also made gains in yield and uptime optimization. We have essentially, in the front end of the process, we have gotten to an efficiency in the process where we can increase the volumes on one batch by 30% to 40%.

Speaker #3: That rationalization created an optimized platform for drying microcapsules. So, we're selling powders into some other industries now. But also, in the bedding industry, we're infusing powders into foam with customers that pour foam beds.

Speaker #3: Also, this integration of the two processes created efficiency between the two businesses merged, and better quality for formulated coatings, also resulting in lower costs. It also consolidated the market.

Speaker #3: That was two of the major microcapsule producers in North America merged into one, leaving three that we're aware of in North America, and less than five to ten worldwide.

Speaker #3: We've also made gains in yield and uptime optimization. We've essentially in the front of the process, we've gotten to an efficiency in the process where we can increase the volumes on one batch by 30 to 40 percent.

Speaker #3: So, in the same window of time, with the same labor and fixed costs, we're getting out 30% to 40% more product out of that batch.

Billy Blackburn: In the same window of time, with the same labor and fixed costs, getting out 30% to 40% more product out of that batch. Uptime optimization has been through really preventative maintenance and love and care in the plant. Some examples, just to get too into the weeds here, but when you rebuild a pump, you better have another one ready to go when that one breaks. The pump rule is three. You have one working, one that is broken, being fixed, and one ready to go. Things like that are pretty traditional preventative maintenance that was not being executed quite that well. We are starting to put that operational discipline into place, and it is showing up in the pounds per shift already. Workforce training and operational discipline, that is coming mostly from leadership. We have brought in some outside training.

Speaker #3: And then uptime optimization has been through really preventative maintenance, and love and care in the plant. So, whenever you—some examples, just to get into the weeds here—but when you rebuild a pump, you better have another one ready to go when that one breaks.

Speaker #3: So it's the pump rule of three. So, you have one working, one that's broken and being fixed, and one ready to go. Things like that are pretty traditional preventative maintenance that wasn't being executed quite that well.

Speaker #3: So we're starting to put that operational discipline into place, and it's showing up in the pounds per shift already. Workforce training and operational discipline—that's coming mostly from leadership—and we have brought in some outside training.

Speaker #3: We recently provided EOT and hazardous worker operations training to the entire team. Randy brings a style of leadership that's admirable—he leads from the front.

Billy Blackburn: We recently gave DOT and hazardous workers operations training to the entire team. Randy brings a style of leadership that is admirable. He leads from the front. He has been in the plant, showing the guys how to run the processes, working on the line, showing them what good looks like, leading by example. That has been fantastic. The new plant manager coming in, we expect more of the same, which will duplicate Randy's efforts and allow Randy to step back to a more strategic level in driving the business. Lastly, we have eliminated a lot of bottlenecks and non-value-added activities. We found that their business had been through a slow season and had had some struggles, and that led to some bad habits. We have basically eradicated those, put people into some different seats, and pointed out the inefficiencies of some of the things that were happening.

Speaker #3: He's been in the plant, showing the guys how to run the processes, working on the line, showing them what good looks like—leading by example.

Speaker #3: And that's been fantastic. With the new plant manager coming in, we expect more of the same, which will duplicate Randy's efforts and allow Randy to step back to a more strategic level and drive the business.

Speaker #3: And lastly, we've eliminated a lot of bottlenecks and non-value-added activities. We found that their business had been through a slow season and had some struggles, and that led to some bad habits.

Speaker #3: So, we've basically eradicated those, put people into some different seats, and pointed out the inefficiencies of some of the things that were happening. We also made some changes to the supply chain flow in the plant and the way materials are warehoused, shipped, and received.

Billy Blackburn: We also made some changes into the supply chain flow in the plant and the way materials are warehoused, shipped, and received. Again, every little bit adds up to a lot in the end. In the last quarter and the quarter coming up, we do not expect any major capital investments. We again are moving capacity, moving products there to utilize the capacity in Ohio. For this next quarter, we will stay focused on that discipline pursuit. Phase 2, a little more there, but going from an 8 by 5 shift to ultimately a 24/5 will be a staged approach that I just laid out. That will be driven mostly by new microcapsule production supporting formulated products.

Speaker #3: And again, every little bit adds up to a lot in the end. So, in the last quarter and the quarter coming up, we don't expect any major capital investments.

Speaker #3: We are again moving products there to utilize the capacity in Ohio. And for this next quarter, we will stay focused on that disciplined pursuit.

Speaker #3: Phase two, a little more there, but going from a 24/8—excuse me, 8 by 5—shift to ultimately a 24/5 will be a staged approach that I just laid out.

Speaker #3: And that'll be driven mostly by new microcapsule production supporting formulated products. The formulated products you hear a lot about from us are going to be Electrical and BioCool for MPCM.

Billy Blackburn: The formulated products you hear a lot about from us are going to be AlexiCool and BioCool for mPCM, and they are also making our formulated AlexiShield coatings at the Ohio plant as well. That will start to fill up the capacity throughout the rest of the calendar year. Then lastly, as demand grows, we will ramp even further from there, and then we will be looking to add additional shifts. It is really driven by the third. Well, all of this is driven by volume, right? So the more volume we push into the plant, the more we utilize the capacity. Once we get to a successful utilization rate, which is north of 80%, the additional 20% is planned maintenance and any unplanned maintenance baked into that 20% to 15% left over. That is a pretty healthy target for this plant.

Speaker #3: And they're also making our formulated AlexiShield coatings at the Ohio plant as well. So that'll start to fill up the capacity throughout the rest of the calendar year.

Speaker #3: And then lastly, as demand grows, we'll ramp even further from there, and then we'll be looking to add additional shifts. So, it's really driven by—well, all of this is driven by volume, right?

Speaker #3: So, the more volume we push into the plant, the more we utilize the capacity. Once we get to a successful utilization rate—which is north of 80%—the additional 20% is planned maintenance and any unplanned maintenance baked into that 15 to 20 percent leftover.

Speaker #3: That's a pretty healthy target for this plant. That's going to trigger second shift and third shift once we fill up the second. There has to be clear economic justification.

Billy Blackburn: That is going to trigger a second shift and third shift once we fill up the second. There has to be clear economic justification. So this utilization is really quite simple. Volume over costs equals more profitability. Having control of our costs and control of our volumes and quality is what underpins the customers wanting the product. It is also very helpful for our customers to see that our processes and our plant is integrated into our business. They can come and see where we make their products. They can come and audit the quality. They can see how we package and store inventories. It is very helpful in the development process with customers. So a little further into customer and project updates. Our business development and product development pipelines are as healthy as they have been in the company's history, and definitely in my history with Alexium.

Speaker #3: So, this utilization really is quite simple: volume over cost equals more profitability. Having control of our costs, control of our volumes, and quality is what underpins the customers wanting the product.

Speaker #3: It's also very helpful for our customers to see that our processes and our plant are integrated into our business. They can come and see where we make their products.

Speaker #3: They can come and audit the quality. They can see how we package and store inventories. It's very helpful in the development process with customers.

Speaker #3: So, a little further into customer and project updates. Our business development and product development pipelines are as healthy as they've been in the company's history, and definitely in my history with Alexium.

Speaker #3: So new cooling and energy conservation and new FR projects all commencing started in late quarter late quarter four of 2026 and then we'll be more projects commencing in FY27 and those that started last year will be ramping throughout the fiscal year.

Billy Blackburn: New cooling and energy conservation and new FR projects all started in late Q4 of 2026, and then there will be more projects commencing in FY27. Those that started last year will be ramping throughout fiscal year. So in the Q4, we had two new cooling pillow projects, one for the AlexiCool coating and one with our Eclipsys heat dissipation textile. We are in a multi-melting point coating development for an energy conservation application, so that has reached the pilot-scale production this month. We actually had trials over the weekend, and the product came out beautifully today. So we are in negotiations with a customer there, and we expect to be reporting sales in that market by the 4C in October. We signed some new agreements in August.

Speaker #3: So, in the fourth quarter, we had two new cooling pillow projects: one for the AlexiCool coating and one with our Eclipsis heat dissipation textile.

Speaker #3: We are in a multi-melting point coating development for an energy conservation application. So, that's reached the pallet-scale production. This month, we actually had trials over the weekend, and the product came out beautifully today.

Speaker #3: So we're in negotiations with a customer there, and we expect to be reporting sales in that market by Q4, in October. We signed some new agreements in August.

Speaker #3: Those were requests for development work on additional thermal management in energy conservation, both with very large utilities. We took our first order for the FR coating—again, that's the LexiShield—and that's for furniture, and that order is shipping this month.

Billy Blackburn: Those were requests for development work on additional thermal management in the energy conservation, both with very large utilities. We took our first order for the FR coating, again, at AlexiShield, and that is for furniture. That order is shipping this month. So we will push further into that market as we go forward. As I said, for NyCo, the US Army, we are at the mercy of their timeline, but they have signaled and maintained that it would be September or October at the latest. So as soon as we know something, we will make that known to the shareholders. In the pipeline, our business development product pipeline are very healthy right now. That is a very general statement, so let me try to capture what that means. We have to apply discipline daily, weekly, monthly here.

Speaker #3: So, we'll push further into that market as we go forward. As I said, for Nitro, the Army—we're at the mercy of their timeline—but they have signaled and maintained that it would be September, October at the latest.

Speaker #3: So, as soon as we know something, we'll make that known to the shareholders. And in the pipeline, our business development product pipeline is very healthy right now, and let me say that's a very general statement.

Speaker #3: So let me try to capture what that means. We have to apply discipline daily, weekly, and monthly here to keep from—we have to resist the temptation to chase so many things that come in as leads, so many opportunities that can hit our pipeline. And we stack our pipeline to focus on near-term revenue from products that we can make right now, that have been tested and are mature and ready for prime time.

Billy Blackburn: We have to resist the temptation to chase so many things that come in as leads, so many opportunities that can hit our pipeline. We stack our pipeline to focus on near-term revenue from products that we can make right now that have been tested and are mature and ready for prime time. That is the focus this company needs to have in order to generate cash positive results and continue growing from there. If we chased everything, we would achieve very little. The pipeline has a lot of business in it that is really focused on short-term revenue in our core markets that align well with our product development, business development, and manufacturing strategy. The team is hyper-focused on delivering results from that.

Speaker #3: And that's the focus this company needs to have in order to generate cash-positive results and continue growing from there. If we chase everything, we would achieve very little.

Speaker #3: So the pipeline has a lot of business in it that's really focused on short-term revenue in our core markets that align well with our product development, business development, and manufacturing strategy. The team is hyper-focused on delivering results from that. We've changed as Alexium over the years from a scientific development company that chased a lot of intellectual pursuits to a more sales and manufacturing organization that's focused on delivering production and revenue from production.

Billy Blackburn: We have changed as Alexium over the years from that scientific development company that chased a lot of intellectual pursuits to a more sales and manufacturing organization that is focused on delivering production and revenue from production. That is a tide change for this company. We are going through that change now. Look, it has been a bumpy ride, and there is going to always be bumps along the ride. This is how we are building a stronger foundation, and this is how we are going to deliver long-term success that is sustained. We are going to stick with that discipline for now, but the pipeline is very robust. Just know, you will get tired of hearing this from me. Focus, focus on execution short term. In summary, we have overcome the post-closing challenges after the acquisition in Ohio. Glad to report that we are stabilized now and are ramping again.

Speaker #3: That's a tide change for this company, and we're going through that change now. And look, it's been a bumpy ride, and there's always going to be bumps along the ride, but this is how we're building a stronger foundation, and this is how we're going to deliver long-term success that's sustained.

Speaker #3: So we're going to stick with that discipline for now. The pipeline is very robust, but just know you'll get tired of hearing this from me.

Speaker #3: Focus, focus, focus on execution short-term. So in summary, we've overcome the post-closing challenges after the acquisition in Ohio. Glad to report that we're stabilized now and are ramping again.

Speaker #3: We've recommenced and are ramping up production and the bedding market, despite self-commit self-conditions. And many new non-bedding placements are coming through early on in the fiscal year now.

Billy Blackburn: We have recommenced and ramped in productions in the bedding market despite soft conditions. Many new non-bedding placements are coming through early on in the fiscal year now. Very excited about that. We have a lot of friends and a lot of relationships and good products in the bedding market, and we want to continue that pursuit. Our aspiration is for the bedding market to just be one percentage piece of a pie, a larger pie that is diversified across many markets. Our goal is to deliver thermal products and protective products through FR to a lot of different markets. We just found ourselves concentrated in bedding and had to weather the storm and deliver short-term success there. Now we are starting to slowly work our way out of that, leveraging new technology and the manufacturing to get us there.

Speaker #3: Very excited about that. We have a lot of friends and a lot of relationships and good products in the betting market, and we want to continue that pursuit. But our aspiration is for the betting market to just be a 1% piece of a larger pie that's diversified across many markets, and our goal is to deliver thermal products and protective products through FR to a lot of different markets.

Speaker #3: We just found ourselves concentrated in bedding and had to weather the storm and deliver short-term success there. Now we're starting to slowly work our way out of that, leveraging new technology and the manufacturing to get us there.

Speaker #3: But we do want to deliver success in the betting market, and we do want that to be a big part of our book, but not the majority.

Billy Blackburn: We do want to deliver success in the bedding market, and we do want that to be a big part of our book, but not the majority and not an over-concentration like it has been in the past. So it is a parallel pursuit. Again, we are aimed at reaching cash positive results by the new year. That remains the goal. Lastly, we were disrupted in Dayton with some problems in the manufacturing facility. Again, those are behind us. Really during that period, we lost about 3 to 4 months of momentum that we were very excited about in January. It is not lost forever. It was paused while we worked through those issues. Now we are regaining that momentum. The opportunities are still there, so now we are back into the early phases of ramping. So it is really just a delay of 3 to 4 months.

Speaker #3: And not an over-concentration like it has been in the past. So, it's a parallel pursuit. And again, we're aimed at reaching cash positive results by the new year.

Speaker #3: That remains the goal. And then lastly, we were disrupted in Dayton with some problems in the manufacturing facility. Again, those are behind us. Really, during that period, we lost about three to four months of momentum that we were very excited about in January.

Speaker #3: It's not lost forever. It was paused while we worked through those issues. Now we're regaining that momentum. The opportunities are still there, so now we're back into the early phases of ramping.

Speaker #3: So, it's really just a delay of three to four months. And then, leadership and operations are stronger than they've ever been. With new plant management and Randy coming on as the COO, we're very excited about where we're heading.

Billy Blackburn: Leadership and operations is stronger than it has ever been. With new plant management and Randy coming on as the COO, we are very excited about where we are heading. The executive leadership team here with Heather, Nick Leitner in technology, myself, and Randy, is also stronger and more well-rounded than it ever has been at Alexium. Despite the disappointing results, the company is well positioned to ultimately and finally deliver good results, and make that just a milestone into growing this company to where it should have been all along. With that, I will turn it back to Simon to bring us home. Then we will move into some question and answers, and we will do our best to answer all the questions that have come in overnight and during the session here.

Speaker #3: The executive leadership team here—with Heather, Nick Leitner, and technology, myself and Randy—is also stronger and more well-rounded than it ever has been at Alexium.

Speaker #3: So despite the disappointing results, the company is well positioned to ultimately and finally deliver good results and make that just a milestone, and to grow this company to where it should have been all along.

Speaker #3: So with that, I'll turn it back to Simon to bring us home. Then we'll move into some questions and answers, and we'll do our best to answer all the questions that have come in overnight.

Speaker #3: And during the session here.

Speaker #1: Thank you, Billy, and thank you, Heather, for your contributions. Look, at the conclusion here, I'd like to say from the board's perspective, and from my own perspective, the company has made significant strides.

Simon Moore: Thank you, Billy, and thank you, Heather, for your contributions. Look, at the conclusion here, I would like to say from the board's perspective and from my own perspective, the company has made significant strides. The one place where that has yet to be reflected is on the scoreboard that counts, which is the financial results. We do recognize that at the moment, we are running behind where we should be in terms of the financial performance of the business. Management is very focused on catching up on that gap and getting us to a position of being self-sustaining from a capital perspective as soon as possible. The headway that we have been making with customers across a number of different products in a number of different industries is extremely positive.

Speaker #1: The one place where that has yet to be reflected is on the scoreboard that counts, which is the financial results. We do recognize that, at the moment, we're running behind where we should be in terms of the financial performance of the business.

Speaker #1: And management is very focused on closing that gap and getting us to a position of being self-sustaining from a capital perspective as soon as possible.

Speaker #1: The headway that we've been making with customers across a number of different products in a number of different industries is extremely positive. And from where we sit as a board—and I'd say our board engagement is at an extremely high level with the team.

Simon Moore: From where we sit as a board, and I would say our board engagement is at an extremely high level with the team. I think we would be confident in saying that the growth we are seeing in the underlying activity in the business is real, and that the progress is very tangible. We will be back to you with a 4C for the September quarter end, which will be delivered at the end of October, and we will have another session, probably in the week following that, where we will again run through the 4C results and provide a comprehensive trading update. I understand from all shareholders' perspective, it has been a long and frustrating journey so far, but I think we are at that point where investors should certainly remain cautiously optimistic and hopeful about the future.

Speaker #1: I think we would be confident in saying that the growth we’re seeing in the underlying activity in the business is real, and that the progress is very tangible.

Speaker #1: We will be back to you with a 4C for the September quarter end, which will be delivered at the end of October. We'll have another session, probably in the week following that.

Speaker #1: We’ll again run through the 4C results and provide a comprehensive trading update. I understand that, from all shareholders’ perspectives, it has been a long and frustrating journey so far, but I think we’re at the point where investors should certainly remain cautiously optimistic and hopeful about the future.

Simon Moore: We are making strong progress and I think we will start to see that over the course of the next 6 months in terms of the results. With that, I will throw it back to Heather to be effectively our moderator for questions. We had a couple of people submit questions ahead of time as they were going to be unable to attend the webinar itself. If you have a question, please put the question into the chat as per the instructions, and Heather will sort of pass those along and direct them towards Billy, myself, or if it is a very hard question, she will answer it herself. Thank you.

Speaker #1: We are making strong progress, and I think we'll start to see that over the course of the next six months in terms of the results.

Speaker #1: And with that, I'll throw it back to Heather to be, effectively, our moderator for questions. We had a couple of people submit questions ahead of time, as they were going to be unable to attend the webinar itself.

Speaker #1: And if you have a question, please put the question into the chat as per the instructions, and Heather will pass those along and direct them towards Billy, myself, or, if it's a very hard question, she'll answer it herself.

Speaker #1: So thank you.

Speaker #2: Sure. Some of the questions that have come in have already been answered, so I'm just going to skip those. The first one has not been answered.

Heather McClain: Sure. Some of the questions that have come in have already been answered, so I am just going to skip those. The first one that has not been answered: Of all the improvements that have been initiated over the last few years, when are we going to see those in the results?

Speaker #2: Of all the improvements that have been initiated over the last few years, when are we going to see those in the results?

Speaker #3: Now, as I talked about the developments in MPCM, shell technologies and coatings are starting to show up in material results now. So new placements, new volumes ramping—I would mark where we are: fourth quarter into fourth quarter '26, into first quarter '27, and on into the second quarter.

Billy Blackburn: Now. As I talked about the developments in MPCM, shell technologies and coatings are starting to show up in material results now. New placements, new volumes ramping. I would mark where we are Q4 2026 into Q1 2027 on into Q2, to see that trend line. Those new technologies are in FR and also in PCM. We do have the potential for a DelCool placement, our dehumidification technology in the new year. We are waiting on forecasts and timelines, so we have been cautious not to say much about that. But there is a potential for that technology that was developed a few years back, to start to roll out into the bedding and furniture market in the new calendar year as well. But now is the time to start seeing these improvements to these products start to take hold in volumes.

Speaker #3: To see that trend line. Those new technologies are in FR and also MPCM. We do have the potential for a DellCool placement or dehumidification technology in the new year.

Speaker #3: We’re waiting on forecasts and timelines, so we’ve been cautious not to say much about that. But there is a potential for that technology, which was developed a few years back, to start to roll out into the bedding and furniture market in the new calendar year as well.

Speaker #3: But now is the time to start seeing these improvements to these products start to take hold, and in volumes.

Speaker #2: Okay, next question is about going concern, which was addressed pretty thoroughly in the annual report. So I will defer to the annual report on that one and direct you there.

Heather McClain: Okay. Next question is about going concern, which was addressed pretty thoroughly in the annual report. I will defer to the annual report on that one and direct you there. The next question: How is the company planning on increasing shareholder value and confidence?

Speaker #2: The next question: How is the company planning on increasing shareholder value and confidence?

Billy Blackburn: Simple. Results. Do what we say. Say what we are going to do, then do it. We have to trend positive. We have to tip over cash positive. We have to announce some of the material agreements that are coming. From there, it is building a run of doing what we say and overcoming the misses of the past, the difficulties of the past, and restoring confidence. The only thing that will do that is results, and those need to be cash positive results that uplift the share price. It is very simple.

Speaker #3: Simple results. Do what we say. Say what we're going to do, then do it. So, we have to trend positive. We have to tip over to cash positive.

Speaker #3: We have to announce some of the material agreements that are coming. And from there, it's about building a track record of doing what we say—overcoming the misses and difficulties of the past, and restoring confidence.

Speaker #3: So the only thing that'll do that is results, and those need to be cash-positive results that uplift the share price. It's very simple.

Speaker #2: Okay, that is all of the questions that I see.

Heather McClain: Okay. That is all of the questions that I see.

Speaker #1: Okay, well, thank you very much for that, Heather. And thank you, everyone, for joining us today. Whether you are participating right now, live, or whether you’re hearing this on replay, we look forward to getting back to you in approximately six or seven weeks’ time with a further update on the progress of the business.

Simon Moore: Well, thank you very much for that, Heather, and thank you everyone for joining us today, whether you are participating right now live or whether you are hearing this on replay. We look forward to getting back to you in approximately six or seven weeks time, with a further update on the progress of the business. In the interim, please have a good day and a good month of September, and we will speak again soon. Thank you.

Speaker #1: And in the interim, please have a good day and a good month of September and we'll speak again soon. Thank you.

Speaker #3: Thank you.

Billy Blackburn: Thank you.

Speaker #2: Thank you.

Heather McClain: Thank you.

Operator: Goodbye

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Q4 2026 Alexium International Group Ltd Earnings Call

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Alexium International Group

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