My name is Danny Huh, currently serving as Senior VP of Strategy and Operations here at NEO Battery Materials. In the next 20 minutes, you'll learn about why manufacturing these high-performance batteries outside of China is a critical national security concern, not just for the U.S., but NATO countries, Ukraine, Korea, Japan, any countries you name it, especially within the defense, robotics, drones sector. Right now, NEO Battery Materials as our one-line elevator pitch, we are currently in the business of obviously manufacturing these high-performance drone robotics batteries that enable them to run longer, charge faster, and also be cheaper. I did mention about drone robotics, but any type of battery-powered application we can insert these batteries into. One of the critical value propositions of the business is that not only do we just produce a set product into the market, but what we do is a custom manufacturing business, just like TSMC does for semiconductors. What we run is a flexible foundry business in which we can hyper customize the batteries to whatever performance that our end user is requesting us to do. Right now within the market, one of the most critical problems with these types of high-performance batteries is that almost 100%, 99% of these high-performance drone batteries are being manufactured in China today. As you know, the man in the White House does not like the Chinese supply chain, also many different countries and their governments do not like relying on the Chinese supply chain. This is why NEO Battery, we are stepping in as a resilient alternate solution for manufacturing these types of high-performance batteries and actually enable defense companies, contractors, primes and neo-primes to actually start or continue their eligibility into procuring these types of governments and militaries. Right now, NEO Battery, we started out the company around five years ago. We were developing what is known as silicon anode materials. What silicon anodes does within the battery is that it extends the runtime of the battery, enables ultra-fast charging, and it is also cheaper per energy unit compared to any other material that goes within the battery today. This is why we differentiate our batteries by inserting our own proprietary solutions which are called silicon anodes. We have been able to escape R&D or pre-revenue purgatory. Just about eight months ago, we lease-acquired an existing battery manufacturing facility in South Korea, we pivoted more into the downstream while developing our materials. Now we actually do produce our own batteries. We are revenue generating by having two Fortune 500 automotive customers within our sales pipeline. Right now, automotive sounds good, but what is better is, as I said, the high growth markets. The growth of revenues, margins, and our eventual cash flow positive will happen by serving more of these types of defense or AI sectors per se. Right now we do have an industry-leading battery team as well. We come from the world's largest battery manufacturers like LG and Samsung. It's not just a bunch of random engineers that we've hired, but it's actually engineers that have decades of practical execution in manufacturing these batteries with quality and at scale. We started around five years ago. What we did is we licensed a patent with regards to the silicon anode technology from a prestigious university in South Korea, independently developed that product for the past five years. Just because we wanted to get into revenue generation as soon as possible, that's why we've taken a bit of a pivot into the downstream to actually manufacture these batteries and implement our materials into battery technologies, avoiding the bureaucracies of the huge companies and trying to go to market as fast as possible. The reason why we've chosen particularly defense market is that there is just immense demand for battery technologies and supply. You might have heard of Iran's Shahed drones and different types of kamikaze strike drones, which do run more on fuel power propulsion systems. But most of the drones that are being utilized in the battlefield today, they are all battery powered. What we've been able to do with surveillance drones and even strike drones was double flight time and double flight range so that the militaries, our Western allies can realize the most benefits within the battlefield today. This is a little bit about the company's management as well. As you can see here, the CEO has an uncanny resemblance to me and CEO is my father. We've been working very directly together. He's been working in the financial industries for about 20-30 years, both in South Korea and Canada, and deeply connected into South Korea's military government as well as finance. He has deep expertise in different areas within South Korea. As I mentioned, we do have our engineers that come from Samsung and LG. Our engineering team actually commercialized BMW's first EV batteries that are on the road today. Manufacturing drone batteries are much more easier than EV batteries. We also do have 2-4-star generals from Korean Army, Navy and Air Force. Our director, General Ko, was actually the most recent chief of staff of the army in South Korea, and they are helping us with South Korean defense and military integration. We're doing a step by step process or go-to-market phase by going into South Korea first, inching out into the U.S., NATO, and Ukraine as well. As I mentioned in the beginning, right now the biggest problem with these types of high-performance batteries is that 86% of the world's batteries are being produced by China. But when you exclude the largest markets like EVs and energy storage, as I said, drone robotics batteries, almost 100% of these are being manufactured in China today. Right now, the biggest problem is that Trump has actually banned Chinese batteries being procured into U.S. military and other types of defense ecosystems. This is called National Defense Authorization Act. Starting January 2028, the ban comes into effect with full phase out by 2031. It's not just the U.S., but also Canada, different types of APAC countries, NATO, Ukraine, are implementing the same type of regulation. What layers into the supply deficit problem is the lack of customization in the sense that these batteries for drones and robotics, some phone batteries are being put into drone batteries, and this lack of customization is putting a hard cap or a performance ceiling for these drones to actually run at their full performance potential. Another problem that layers onto these two problems is outdated technology. You probably hear about NVIDIA's GPUs every three, six months on their newest innovation, Apple's new M3 chips every year. Battery technology evolves on a pace of around three, five, seven years. All of the batteries that are in your phones and laptops today, they are all technologies from about seven years ago. Right now, the overreliance on legacy materials is adding to the pressure to get to the next levels of performance for batteries. This is where NEO Battery comes in with our three-in-one solution for the battery supply chain as well as performance. Because we have this fundamental Western go-to supply chain where we're manufacturing in South Korea with plans to come into the Canada or U.S. What we have done is a flexible foundry solution in the sense that, as I said, we actually do not manufacture set products. We can, but what we do best is work with our end customers to actually custom design the batteries, improve the performance to the standards where these electronics or hardware actually run at their full performance potential. Where we differentiate with the materials is our proprietary silicon nanomaterials that allow the batteries to run longer, charge faster, and be cheaper per energy unit. This is a little bit about the battery manufacturing process. In the first image you see here, I don't know if the right does work. The battery materials is all of your lithium, nickel, cobalt, manganese, graphite, but we don't purchase the metals directly. There is an intermediary that actually processes these critical materials into actually battery-grade materials. That's what we purchase. All of these materials are mixed and coated onto these copper and aluminum foils. These foils, they're super long, so we wind and stack them, and we put them into an aluminum casing, which you can see over here. The thick part of the battery is all of those critical materials. Then we have put on a aluminum pouch casing. One of the most important parts of this manufacturing process is the electrode or the coatings because this is the step that actually determines all of the battery performance, lifespan, how fast it can charge. If you can't do this right, the drone batteries are not going to perform well. This is where NEO Battery has its expertise of coating the critical materials onto these foils at very good quality. This is a little bit inside tour of the current facility in South Korea. The images don't do justice because this 300-liter mixer is probably as big as this area of the conference room over here. Then we have 30-meter coating lines, and these are the coated foils that I have just shown you. These foils are put into the next room for us to actually do the pouch assembly over here, and this is the eventual battery cell that comes out of the factory at this time. In terms of the capacity of this factory, what we can do is we can manufacture almost 100,000 heavy-duty cargo drones, surveillance drones, to almost 8 million professional FPV strike drones as well. It's all already a sizable capacity that we have. The only limitation, to be fully transparent, is this part of the process which is providing as a bottleneck. What we are doing in South Korea is we are expanding this capacity so we can manufacture almost up to 4 to 6 million cells per year. Right now, we are focused on drone and robotics, as I said, but we have development projects under electronics, EVs, and different types of battery-powered applications. And we're looking to expand the capacity, especially to fulfill the mass production orders that are coming from U.S., NATO, and APAC defense contractors. These are a bit about the downstream sales pipeline that we currently have. As I mentioned, there's the 2 Fortune 500 automotive customers that we are currently producing for. But we already do have multi-year POs in the backlog totaling around CAD 10 million that would be spread across 1 to 3 years. These are smaller orders coming in from Korean drone manufacturers, but within the sales pipeline, NEO is already in conversations with U.S. defense contractors and larger contractors within the European region so that we can actually actively deploy the batteries in the scale of around 1 to 2 million cells per year. And another sector is, not that we're trying to jump on this bandwagon, but AI data centers. They are using tons and tons of batteries to store energy so that there's no downtime in terms of energy supply when running the models. Right now, NEO Battery, we can't produce tens of millions of batteries, but what we can do is produce a lot of the coated foils or the materials that I've shown you. We are trying to support the larger battery manufacturers by producing a lot of the insides of the battery. This is another vertical that the company's going into at this time. Yeah. As I've briefly mentioned, because there's been much more demand on the defense side, especially the drone batteries, this is the current project that we have undertaken for about the past 6 months. And with 1 Korean military drone company, what we've been able to do was increase our double flight time compared to Chinese batteries. And one of the most critical problems with Chinese batteries today is that because of low-quality manufacturing, the batteries should stay flat like this, but Chinese batteries, they inflate or swell this much because there's impurities put into the manufacturing process. What we've done is we've eliminated these impurities so that the batteries do not swell, so the batteries can run a much longer time compared to what Chinese batteries do in the field today. Temperature is very important too. Temperature should not rise drastically, or it reduces or degrades the battery performance. We've been able to engineer this very well so that there is minimal temperature rise during operation within drones. Because of silicon, we were able to increase the fast charging rate up to almost 150%. The batteries are much more efficient during use in battlefields or in whatever commercial industrial applications that the end user is using the products. This is a little bit about our silicon anode portfolio as well. The reason why silicon anodes are being actively discussed in the battery industry is that today the conventional materials are called graphite, and you probably hear a lot about graphite anode materials. The problem with graphite is that it doesn't store enough energy. By implementing silicon, you can store theoretically 10 times more capacity compared to graphite. We have our own rendition of the products that can store much more capacity compared to graphite, and compared to even our competitors, we can store around 40%-70% more capacity. One of the engineering feats that have happened within the company so far is that right now the silicon anodes that are being used in the market are very expensive, almost eight to 10 times that of the cost of graphite. What we've done is used low-cost manufacturing process and low-cost inputs so that we can reduce the manufacturing cost of these nascent materials by almost 60%-80% compared to our competitors. We obviously realize fast charging capabilities, and we have different product portfolios that go into different applications. Obviously, the higher energy density products go into more of the strike drones, which don't require a lot of cycle life, and we have another portfolio which can run a much longer time, and they're more suited towards the robotics applications. Right now this is our expansion facility in South Korea, that's five minutes away from the first factory. As I mentioned, we are trying to scale this to almost four million cells per year. On a nameplate capacity, that is around 250 megawatt hours. Drone batteries are being currently sold for almost eight to 12 times the price of EV batteries. EV batteries sell for around $100 per kilowatt hour. Drone batteries are being sold for about $800-$1,200 per kilowatt hour. It's much more of a higher bespoke product with larger margins compared to the EV or the energy storage sectors. In another plant or another building over here, we also have space to increase our silicon anode materials production at the same time. All right. This is a little bit about our competitors or the peer comps. One of the companies that are doing batteries very well is called Amprius, based here in the U.S. in Fremont, California. They are listed on the NYSE under symbol AMPX. They have been able to 29 times their valuation from $100 million to $3 billion in 20 months by servicing a lot of drone manufacturers. In the recent fiscal year, they were able to record around $73 million in revenues. The companies that you see here on the bottom are more materials foundry companies. Right now within the battery industry, there's not a lot of apples to apples comparison. Right now we've listed out here companies that have been able to raise lots of monies, mostly are private because of this continued need for better performing materials, better performing batteries for the drone and robotics sector. Right now at NEO Battery, we are trying to service a lot of the U.S. battery companies because lots of these companies are still contract manufacturing in China. With the upcoming ban of Chinese batteries, they're also looking to diversify their supply chain from China to Korea. What NEO Battery does is not just manufacture our own products, but as I said, we run a foundry business, so we can manufacture these batteries for different types of U.S. battery companies. We have a flexible business model where our competitors can also be customers at the same time. This is the final slide here. For 2026, the key goals and catalyst for the company is to build a repeatable sales pipeline, because as we said, we just started generating revenues just about six months ago. It's really about building that sales pipeline, and how we're looking to achieve this is by first targeting the defense sector because that is where the lowest hanging fruit is. We're trying to get into South Korea and inch our business towards the U.S., NATO, as well as Ukraine. We've recently launched FPV strike drone batteries, surveillance drone batteries, and different types of batteries that will fit different types of defense applications. This is what we've been trying to put out into the market. The second step into achieving this repeatable sales pipeline is also the visible capacity expansion. As I mentioned, in South Korea we're trying to scale from the smaller facility to the larger facility where we can fulfill the mass production orders that will be coming from the larger defense contractors. The reason why this is very timely at this current time is because there are not a lot of battery manufacturers outside of China. This is why we want to seize this opportunity to get into the U.S. market as well as NATO markets, where they're calling for non-Chinese batteries. Not just the battery itself, but also the raw materials, technology, equipment. We've been able to diversify that outside of the Chinese supply chain. There is a very good opportunity that lies ahead of us, so we are trying to take advantage of this timing where there has not been a lot of battery manufacturing capabilities built outside of China today. This briefly concludes the presentation. Thank you for taking the time, and because we have about five minutes left, open the floor for questions. Yeah. The introduction of how and when. Can you talk about what is the current burn rate and how you plan to Yes. At this current time, from the inception of the company till now, for the materials business, we raised somewhere around the quantum of CAD 50 million, mostly from South Korea, Asia, and European countries, just because, as you know, Canadian capital markets, they don't have too much of a fondness for technology. We've seen much more success outside of Canada for raising that type of capital. For the specific battery manufacturing business, since September until January of this year, we were able to raise around CAD 17.5 million from more European family offices. That has been some of the capital deployments that have been happening at the company. In terms of financing future plans too, we're looking at more fundamental investors that do understand the technology, but also strategic investors are something that the company is also considering at the same time. The reason because is that more of these larger battery companies, they need to be more socially responsible per se, so they can't directly deploy their batteries into the battlefield. They're trying to circumvent that by deploying type strategic funds. That's also something that we're looking to do some fundings through our South Korean subsidiary as well, so that the overall funding structure is less dilutive. Oh, that's something I can answer later. Yes. Oh, yes. Certainly the comps like Amprius are kind of eye-popping. Looks like the two sort of marquee contracts you have coming up are in the CAD double-digit millions range for contract value. Help us understand how you get to an Amprius style or even anything close to- Yeah. If you can even get close to that, this is a winner, but it almost feels like my impression of the market is that there are a couple of anointed winners that are seen as the ones winning the game, like Amprius, and they are kind of getting the lion's share. Yeah. What does it look like to go from good for you guys for getting those- CAD multi-million dollar contracts, seems like there's some order of magnitude needed, unless you can somehow command a multiple that Amprius gets. What does the pathway look like to get a multiple on our investment to be Yeah, absolutely. That's a great question because manufacturing capacity is always the question. It becomes a chicken and egg problem in the sense that you need the capital first to build up the plant, but if you want the capital, you need the offtake agreements. That's why we've actually done more of a lean structure in terms of manufacturing, trying to get to market, because right now, for a fact, for the past three years, there's been about 15 battery bankruptcies. Billions of CAD have been deployed, but the main reason these battery companies could not succeed is not that they couldn't get offtake agreements, but that they couldn't actually manufacture at scale with quality. Right now, to circumvent any type of disasters that might come, we try to fight with quality first, and then by showing this quality, we are trying to ramp up or put almost 100% capacity into the first factory. To actually get to the levels, let's say, Amprius is currently doing within the field today, that's where our second factory kicks in. With the second factory, we can produce around, let's say, from the start, about 2 million cells, and then we can ramp that up to about 4 million cells. Each cell is sold for about $20-$50 per year. Right now, once we have that expansion facility in place, we can start producing our own batteries, but also produce for different foundry partners at the same time. Getting that visible capacity expansion is how we can effectively get to that type of level or volumes that Amprius is currently producing in the field today. What's actually backed by those volumes is actually quality manufacturing, so that the yields are high enough for us to actually realize the positive unit economics, instead of burning through or wasting through 50% of different materials just because we can't realize that yield. All right. That 2 million run rate, when do you expect that? That's your Korean plan, right? Cells per year. Oh, yes. That's the Korean plan. We're looking to have this facility operational by Q1 of 2027, or early Q2. That might be accelerated by us partnering up with different types of strategics, because it does cost a leg and an arm for these type of facility. If we can partner with the strategics, they can come in with more of their vendor financing methodologies as well. That can also accelerate the plant as well. Yeah. We're looking at somewhere around Q1, Q2 of 2027. Another 2 million in capacity. That is likely. One of the reason why we haven't been able to reach out into the U.S. or go there with confidence is that the engineering expertise is very low, and most of these battery bankruptcies have happened in the U.S. and Europe because of the low engineering expertise of the countries and the overall labor pool. That's why we're trying to focus on Korea first, do more risk mitigation, and then come into the U.S. or other countries. Yes. The pricing per cell can be Yes, that's right. For the current drone batteries that we see within the field today. The larger ones like this is around 50 USD, and the smaller we get, then we go towards that 20 USD per cell pricing point. Yes. All right.