Operator

Welcome all to Titomic’s Results Webinar for Financial Year 2024. Today’s presenters are Managing Director, Herbert Koeck, and our CFO, Geoff Hollis, who will discuss Titomic’s performance for FY ’24 and our outlook. The presentation will be followed by a brief Q&A session. So please submit any questions you may have within the chat function on the right of your screen, which will be answered after the presentation.

This presentation may contain forward-looking statements. Information provided is for general purposes only and is not advice, financial or otherwise. Viewers should conduct their own due diligence and consider all available information before making investment decisions.

I’ll now hand over to Herbert Koeck, to begin the presentation.

Herbert Koeck

Thank you, Ben, and thank you, Geoff, and thank you, everyone, for joining us today for the earnings call of fiscal year ’24. It’s a great pleasure to be back here in front of you and share out on the achievements and all the things which have happened during the fiscal year. I can tell you, I’m seriously excited about the foundational growth we could achieve in that fiscal year, but also on the progress on so many projects leaving us at the end of the day with a great order backlog we haven’t seen so far going into fiscal year ’25.

The one thing you need to see here is, and when you look at the chart, which you are seeing right now is fiscal year ’24 has shown that the cold spray technology we are commercializing is pretty than good, especially in two categories. The one category which we have seen on and on again, which brings us technically into competition of the existing casting and forging industry, it’s in the area where we can produce, where we can manufacture, where we can build parts, specifically with the hard metals like titanium, but also with Inconel and with invar. It’s our technology of cold spray which is showing a significant advantage to this traditional way.

Any one of you who knows what the forging and casting can do and especially when it comes to titanium, knowing that this is a pretty cumbersome and complex process, where in the existing processes, graphite and zirconium, for example, are used, which is super expensive and as such very complex to produce parts. It’s also clear what we have seen is that if you want to reduce literally thousands of components in the future, these are still the traditional best ways to do it, but many customers are seeing now the need to produce hundreds of parts, dozens of parts. And the alternative is really cold spray as we can show that our time to market, our ability to reduce cost, our ability to have domestic capabilities to produce these parts, which technically doesn’t exist anymore in many countries. So, the U.S. is really a super alternative for the manufacturing of these parts. So that’s one category.

The other category where we have also made great inroads and progress is in the service and repair area. It’s in the advanced coatings and repair of metals and where cold spray can be used basically to work and to do a super job in the areas to reduce, to reuse, to recycle. So, I think we, at Titomic have a very good sustainability story when it comes to these areas. Customers like Airbus are working with us to have a sustainable way to repair certain defects and certain problems with the airplanes, and we are working with them to qualify and certify these repair processes.

Customers like KLM, EPCOR, Perron038, all in the aerospace industries have been working with us during the year to prove and to certify the way what we can do with cold spray. Now these are just two industries, on one side, aerospace and defense, which are highly interested in these two capabilities, which we are showing, but there are other industries like oil and gas, where we can leverage the same know-how we have built now, for example, in producing belts, producing [ coal belts ] and producing other parts or providing machinery, for example, for the oil rigs where we have the good engage with a company like Woodside, which works closely with Equinor on the technology side to prove that cold spray is an alternative way [Technical Difficulty] to categories.

So, at a high level, once again, it’s replacing in a certain number of instances, casting and forging to produce parts, which is the big element, but it also has a long horizon and a lot of hard work on the testing side and the more shorter oriented repair services when we are repairing existing metal equipment, which we are doing with our machinery. Both areas in the future could be two different businesses, but as such, it’s just applying cold spray. And after we have focused 3 years ago and a handful of use cases, it really has shown great results during fiscal year ’24 and also now going into fiscal year ’25, which is a huge advantage for us.

Now the one area I would like to highlight here is these two industries, even so it’s not an industry per se, these two areas where we can apply cold spray also allows us to have multiple streams of revenue. There is a stream of revenue coming from the production of parts. And obviously, we have a company, for example, like Boeing, who has more than invested $1 million with us already on that process or it’s a stream of revenue from selling certain machines as we are doing with Airbus.

But going forward also, the reason why we are doing it is the opportunity not only to sell one or two machines to Airbus to prove certain and to get the certification on the repair, but to go out there and as we are certified to be present in every repair center of Airbus and any other airline on the club, where we are talking literally about dozens, if not hundreds of machine sales, but with the machine sales, also on the powder sales, on the service and maintenance and on the ongoing consultancy.

So, our outlook at this stage, I can tell you, is better than ever. And you also have seen at the later stage, you will see the amount of orders we just got in the last four months, which we haven’t been seeing in the years in the past but we have now a product. We have a product that we know how to produce certain parts with certain properties, which are required from our customers. We know now that we have machinery when we can do services and repair, and some of the logos you are seeing on that side at the bottom are just a proof point that customers trust in our technology, trust in our ability and are looking forward to work with us to get even bigger.

If we can go to the next slide, please Ben, let me come back to the technology as such. So, what we are doing and all of you who have been with us for a while will know that the technology has evolved over time, but at the end of the day, we are taking a metal powder, we accelerate that metal powder to supersonic speed, and we push it through a nozzle. And whenever that stream of metal particles pumps against the scaffold or a substrate, these particles start to bond with each other and form a metal component.

This is an important story of the technology, as such there is no fusion involved. So, at no point in time the metal particles getting basically fused so they connect with each other. It’s the kinetic energy which drives the bonding and after heat treatment, we are getting the same or even better properties than what you can achieve with casting, for example. The other important element is, and you can see some of the advantages of that process, if you take it to the point where you’re saying is a lot of time size is a big limitation in other additive manufacturing processes or even on casting, size is a fundamental issue when you want to cast parts, which are many, many centimeters or even meters big.

On our side, the reach of the rubber dam of the spray gun is only limited by the reach of the rubber dam. And so, at the end of the day, we can produce parts which are multiple meters tall. With all the consequences around it, at the same time, we can spray, for example, in titanium already today around 4 to 5 kilos an hour, which is a deposition rate which is around 10x of what Laser Beam Power Bed Fusion can do.

So, on top, and last but not least, we also have the ability to combine these similar metals with each other. That’s an important element for applications which we are partially in, for example, where customers are using this technology into a kind of a hybrid manufacturing process.

Hybrid in the sense of, think about it, you want to create all the complexity of the copper part of the fuel nozzles, and you want to encapsulate that one at a later stage with Inconel. It’s a hybrid manufacturing or you take basically a traditional way of flow forming, for example, for metal pipes, which are used already today for the production of barrels and then you encapsulate these flow form barrels with Inconel and you work with cold spray on top of it.

So we are seeing more and more of these high-grade manufacturing processes where only cold spray at the end of the day can do it because of size and because of speed. So it’s a very sustainable way with a lot of advantages, especially also from a go-to-market perspective. Fact is, and there are some discussions going on right now as we are talking to a lot of the U.S. customers in the defense world, the fact is that, for example, titanium casting has moved off the U.S. entirely and to relocate, to bring back basically casting or forging into a country is a $50 million plus exercise and takes at least 2 years to build all these assets. At the same time, if you want to build a capacity to produce certain titanium parts with cold spray, it’s a $5 million to $10 million exercise, which can be completed in the 9 months, okay?

And these are the discussions we are in right now. These are the discussions will allow us to build this capacity and the strong plan of ourselves is to go in that direction because when it comes to the production of parts, we, at this stage, are limited to our facility in Melbourne in Australia. While when it comes to producing the machinery, which allows service and repair, we are focused on building and designing these machines in Holland in the Netherlands. Obviously, strategically going forward, the biggest opportunity for our future growth is if we also duplicate and have these capacities, especially in the U.S. market where we can go ahead and can further grow and can grow faster than if we would stay with the existing setup because some of these processes do not allow us to accelerate further if we are not building these capacities in these countries.

Let me move to the next one. Well, Ben is showing us that video, you should get a little bit of a glimpse. And Ben, if you can start the video on the left-hand side.

[Presentation]

Herbert Koeck

You can look it up in the presentation as we have downloaded it, but it shows basically the application of our manual mobile machine for service and repair. So somebody is holding the spray gun and doing the job and the repair jobs. And as of today, we have some smaller customers like the railways in Melbourne, we are going forward to address now all the railway companies across the globe.

There are some good inroads we are making in Europe right now, at the same time, always with the ability to restore original geometries. So metal components, which are worn because of the use, we can restore the original geometry and they can book these things back in place so they can reuse the part or they can recycle the parts, while they do not have to wait for new parts. In some cases, in the defense industry, this makes the difference between grounding a plane for 2 years because new parts cannot come or getting them up in the year, within weeks after the repair has happened. Let’s move to the next.

So these are the machinery and also a picture of our site in Melbourne. As you can see here on the lower right-hand side on Melbourne, we also have some solar panels on the roof. So we are generating basically a big chunk of the electricity we need to run our machinery with solar energy. At the same time, the systems which you see up there and the newest representative of these machines, which can produce these titanium parts or these Inconel barrels or these bore wells is the TKF3250. The numbers behind the machine names just represent the maximum size of a part in millimeters.

So on a 30 to 50 in theory, we can produce and handle parts of the size of 2.5 meters, which is actually for any other technology in additive manufacturing, a super big part, okay? The standard machine, the TKF 1000 has been sold now multiple times or a similar machine has been sold in multiple times. Companies like Triton in the U.S., OMIC in the U.S., DTWI in the U.K., 2 years ago were also Sabanci using a kind of a modification of the TKF 1000. Overall, we are talking about machine which can handle high-pressure cold spray and by doing so, can handle metals like titanium, invar or Inconel. On the next slide, you will find the summary of the service and repair machinery.

You see these 2 very good machines, which are making the majority of our revenue as of today, the D523, but also the bigger broader next to it is D623, which is basically the machine which we are working with Airbus and which will be used for airplane repairs. The 623 and the 523 differentiate with each other, mainly by the — as couple of parameters in terms of the temperature we can spray with the kind of velocity we can achieve but also the pressure we can use and with the pressure and the other parameters, obviously, there is different metals and different use cases, which become possible. On the right-hand side, you are seeing a prototype, which has got a lot of attention recently in the defense world. It’s basically a backpack solution, which a solder an operator can carry on the back.

At this point in time, there is some limitations which are out there in the market, it cannot be more than 35 kilos. And we will have a prototype on the development that we explained — exhibited it already at the trade show which you can see here in Brussels in Europe, and you will see more of these exhibitions and more refinement of the machine over the weeks and months to come.

If we go to the next one, the next slide, these are examples which are very important, and I want you to pay some attention to it. okay? It’s good examples of what can be done with cold spray and certain materials, and they are great representatives of where we are on projects we are specifically working on, and I want to highlight the 2 things on the right.

One highlight, the third image what you can see here is actually a titanium pressure vessel, a titanium tank, okay? It includes a flange, which is part of the component. So not the second part, but it can be developed and produced in one go. And this kind of tanks are used in multiple industries and multiple use cases, either in rockets, in space, but also in aerospace, for example, as components for missiles where they are carrying fuselage, okay? So these are tanks in all kinds of shapes and sizes, which are possible with cold spray, and doing so, once again, the alternative is either forging or casting.

And in both cases, these works well. If the customer needs thousands of these components, all the same size, all the same shape at a later stage, but it barely works with the traditional manufacturing processes if you need a couple of hundreds. And this is the place where we are chiming in and saying is, ‘Hey, we can give you a domestic capability for a relatively small money compared to traditional forgings and casting setups where you have an opportunity to produce this part at a reasonable cost, but even more so at a reasonable time.’ Because we can build one of our machines, as I said before, in 6 to 9 months, and we have proven it that we can do it multiple times. On the far right-hand side, you are seeing a good example of a hybrid manufacturer.

So this Inconel barrel actually is built on a liner which is a raw pipe where the rifling has been done with traditional ways of production and then gets enclosed with Inconel giving the barrel totally new properties. That’s, for example, something which our joint venture with Repkon is based on and where you’ll see more in the months to come as production is supposed to start.

Now let me summarize before I’d like to hand over to Geoff to share with you about the existing financials and summarize in the sense of what are the big advantages of cold spray, which we have seen now over the course of the last years and where we could refine our value proposition. As you may remember, 3 years ago, we were still defining the products. We just found what can be done, what can’t be done. We had little data.

Now 3 years fast forward, as of today, we know the performance of the product. We know the deposition rate, we know which metals we can handle and which we cannot, okay? We know, for example, the density of the parts, which when we are talking about titanium, we are talking about 99.9%. That’s something you cannot achieve with casting. Casting doesn’t get you out there. And we had to resend even certain test samples to some of our customers because they didn’t believe what they measured in the first run.

The other story is, obviously, that this is very time and material efficient. What you see here is that at this point in time, as we are producing near shape components, it significantly saves time for the customer to go understand the machining time. You don’t need to work on a billet, for example, when you create a titanium ring where at the end of the day, you are throwing away or scrapping 95% of the materials you have put.

You can produce a ring, which is at 15% and then you machine it back to the final specifications. So in all these areas, cold spray is showing, and we are getting better as we speak, also have the financial calculations for our customers. Sometimes it’s very hard because we are going against traditional production processes like casting, which has been used for the last 100 years, and they have all the data on earth, and we get questioned twice and 3 times that we have to prove — that we can achieve what we can achieve. But obviously, the numbers are speaking for itself. And so we are in a couple of projects and maturing in this project where we are on now for 2, 3 years, and we have proven the powder component, we have proven from the [indiscernible] of the process, we have proven that the material properties are where they are or we are getting close to it. And so we are getting all these expertise which makes us a really viable competition to forging and more and more customers are seeing it and trying to engage with us.

With that one, let me move to the next one and asking Geoff to comment on the financials.

Geoff Hollis

Thank you, Herbert. As Herbert alluded to, sales are certainly picking up pace. We’ve had an unprecedented level of sales in the last 14 months. So from 1 July ‘23 up until today, you can see there on the chart, $11.5 million of orders. Some of them have translated into sales, including the Sabanci University order and the Dutch Army, the Royal Netherlands Army order of 10 of our D523s and some are working through now and the guys are busy building like the OMIC and the Triton orders, Woodside have their machine out in an oil rig; the first order we’ve got in oil and gas, at least to machines. So that’s all very exciting. We just got the Repkon order earlier in this 2025 financial year in July and as Herbert alluded to, that is now underway that project. And I think we’re hosting Repkon here next week, when they’re out here for another conference, which is great. So we’ll continue to push that forward.

The good thing is with our order growth, although there’s $11.5 million across the last 14 months, since the 1st of March, we’ve had really strong demand for our products with $8 million of orders in that 6-month period now. And whilst that doesn’t make a full year on annual result for FY ’25, it gives us confidence going into the FY ’25 financial year that we are seeing an unprecedented level of demand and the work we’ve been doing in the background across our aerospace, defense and service and repair side of the business is starting to bear fruit. We know we’ve got a lot of work to do yet. And if you go to the next slide Ben, this slide stands out.

As a CFO, I don’t want to put results out that have a loss after tax of $11 million or $12 million. Now in saying that nearly half of that is noncash with employee shares and other bits and pieces, but we are building as a company, and we saw some really strong revenue growth of top line revenue growth of 126% there in terms of our revenue from customers. And of that $5.9 million, a lot of it was underpinned by the Sabanci sale, which closed during the year of $2.3 million, the spray booth with Perron, which was $0.7 million and a good smattering of D523s and some other 623. Whilst we’re not happy with these level of results, it’s certainly a stepping stone and a real transformation.

What I was really happy with — I’ve only been with the business since May, but coming into a business and seeing the real strict cost disciplines. And you can see here FY ’23 to FY ’24, across our corporate costs, across our sales and marketing costs, they’ve actually dropped. And that’s — I see a real focus on — we know we’re not there yet as a profitable business, so being really disciplined on the cost side is important to us.

I’m always as most CFOs — the balance sheet is pretty clean. On the cash flows, cash is king. We’re really closing the gap on our operational cash flows. You can see there in FY ’23, we had operational cash outflows of $10.7 million. We brought that back in to $6.2 million. And we really think — we’re continuing to monitor that cash position with sales orders, we’re balancing the growth needs of the business, we’re maintaining that strict cost discipline, as I mentioned. We really think FY ’25 is a year where that gap closes significantly again, that operational cash outflows.

Hopefully, they’re closer to a breakeven; we will know in 3 or 4 months’ time, how that forward order book is looking. We haven’t given forecast to the market. So I can’t give you a number of what that breakeven figure is, but in 6 months’ time, we’ll start getting more of a sense on what that order book is looking like, how that’s translating to our operational cash flows, and we’ll be able to be far more firm on where that’s looking, I guess. Sorry to speak in riddles a little bit there, but without — in a growth business like ours, very hard to give forecasts and without forecast, I can’t give you exact details there. So yes, we’re sitting on $2.7 million cash at the end of June.

That’s very similar to where we’re sitting today. We’ve had some good cash inflows in the first couple of months of FY ’25 being our OMIC deposit and our Sabanci final payment and our Dutch Army payment along with EPCOR. So we’re in a good position; keep watching the orders. That’s what we’re doing as a business and that will help drive the FY 2025 result.

Hopefully, hand back to you now Herbert unless you’ve got anything to add there, and you can do a closeout and we’ll get into some Q&A.

Herbert Koeck

No thank you. At the same time, everything what Geoff just has said, I’m fully aware also that we still need to improve in certain areas to bring in the company, for example, revenue recognition in the time we have planned for. While the revenue which you see out there is the revenue for the fiscal year ’24, we had a good finishing, obviously, in July from a revenue standpoint. There’s 2 projects, specifically the [indiscernible] in the army and EPCOR in Europe, we couldn’t get into it from a revenue perspective overall. But these are tiny things at the end of the day, which would have made the numbers even bigger in the fiscal year ’24 [indiscernible]

We have to get to the point where we’re getting even further predictable on this side too, no doubt. If we can go to the next one, Ben, I just want to highlight and summarize on everything which has been set and I want to highlight a couple of things here, okay? So first of all, we’re still enjoying quite some tailwind on one side because the industry overall, especially aerospace and defense are growing, specifically on defense, there is a super amount of investments going into this industry overall.

So first of all, we’re still enjoying quite some tailwind on one side because the industry overall, especially aerospace and defense are growing, specifically on defense, there is a super amount of investments going into this industry overall. And we still have to make sure that we can leverage and participate in that growth rate overall, but that’s a good problem to have that the overall industry is growing. So that’s a tailwind.

What’s basically a headwind for us is that interesting enough, what we are seeing with some customers, the more they have a need to change some of the production setups, the more they are getting picky that they are not taking any risk, okay? So in some cases, we are asked to turn in another set of data, another proof of the numbers again and again because while customers have an increased pressure to change certain setups, they also have an increased pressure not to fail.

And we are coming in with a new innovative way on the production of certain components, and they’re going to challenge us twice as much or 3x as much as there was in the past when everything is flourishing, a change is easily implemented. While at the moment, nobody can afford at the end of the day to fail, especially not when you change a manufacturing process. That’s one area.

The other area, which has become very loud and clear that we still have a lot of opportunity in the U.S., okay? The setup we have been running in the U.S. for multiple reasons, didn’t deliver at the end of the day, the speed and the level of business which we all were expecting and have planned for. So at this stage, we have changed the complete setup in the U.S. and going very aggressively from a go-to-market position into the U.S.

We are on one side engaged with a company called [indiscernible] in Huntsville, which is a set of former executives from all the large companies we want to deal with. You’re talking about Boeing, about MBDA, about General Dynamics, about Raytheon, about Airbus, about Rocketdyne. Everybody and his dog is at the end of the day in Huntsville. And so these guys are helping us to get engaged with these.

At the same time, we have hired Dr. Betty to help us for Titomic to significantly increase our setup in the sales and marketing front and engagement with these companies. Betty, herself was a former executive with Boeing, work former executive with Raytheon, and she is working with us now to push forward the projects we now can get engaged with because she has the proper clearances.

She has the contact in the U.S. And so we are seeing already after the first 2 months of her action and her team’s action in the U.S. that we are seeing an increase in our funnel. So this is really looking good. At the same time, we continue to manage cost in our headquarter in Melbourne, but we also need to expand, and there is a board sign of plan in place, which is also funded for the year to expand our premise in the Netherlands.

At this stage, we are looking for a new location right now. We are at this stage where soon we will have the lease agreement signed so that we have the second place also where we can produce high-pressure articles like pressure valves and, for example, and brings other titanium products in Holland, okay? At this stage, that feature, that function is limited to the setup we have in Melbourne.

And by the end of the year, in Q1, next calendar year, we also have that capability in Holland. Going forward, it’s very obvious that we also need to have that capability in the U.S. for the U.S. And there are multiple plans made around that one right now. So last but not least, we are working off a couple of patents also we have with CSIRO in place, but what we have added a lot of know-how and understanding on how to apply and use code going forward, and they’re set.

And before opening up to questions, just in the summary, on one side, we are getting into the market of casting and forging and for certain use cases, we have a significant commercial advantage. While we are a bar or even better in some cases on the material properties, one area. The other area is around service and repair, where we are working with companies like Airbus, basically to certify and qualify the repair mechanism with the idea to roll out our machinery in many places.

And the same application like an airplane repair also works in repairs, which needed to be done on oil rigs and hence, the work we are doing with Woodside, just a minor thing. Everybody should know that if you want to do something on an oil rig with a certain repair mechanism, there are different licenses you need to have. There are hot licenses and record licenses.

And the difference at the end of day is the temperature, which any kind of equipment on an oil rig gets exposed to. And while welding needs a red hot license because it goes over 400 degrees Celsius, and this is very limited because the vacate the oil rig, there shouldn’t be any gases around and huge problems for cold spray, we only need a hot license because we are working below 400 degree Celsius, which is a huge efficiency gain for these guys when they have to work and just with some crowded areas, and there are many of them in every oil.

So we are getting into this know-how now. We are working with these guys, and this will yield us and I’m super confident because this already yields us more projects, in some cases, more than we can handle with the existing setup, but that’s a different story. And it gives us inroads where customers are approaching us now to say, “Hey, can you look at this, can you do this and that?”

Operator

And we now have references where we said, yes, we can because we did it for this and that. And here we are at the same application. We just can leverage going forward. With that one, I’d like to hand back to you, Jeff. And if we’re getting into question and answers, we will have time now.

Yes. We’ve got some good questions, Herbert. One on the glass mold repair systems, what’s the status of the Metropac system? And are they expected to be further sales of these systems to [ IPGR ] investing in the future?

Herbert Koeck

So the Metropac system, as you may know, is now in place for more than a year. The Metropac system has been tested intensively. At the same time, there are some technical challenges we have been running into respectively, Metropac because of the glass formula, they are using specifically with Metropac.

You need to know is that every glass container manufacturing is using their own formulas on the glass. And with Metropac at this stage, we continue to work to get it certified. It may be a result of that work, which ends by the end of this year that we are applying the same product to other glass container manufacturers, which are using different types of bottles.

For example, if you see some kind of stripes on the bottle on green bottles. That’s a problem because the customer can see it, the same stripes, for example, on the quality, on white bottles like we tested with [indiscernible] in Mexico isn’t a problem, okay? So this is work which is done right now.

What you also need to know is that these projects are, from my point of view, challenging when it comes to timing because IPGR at this point in time, has a major project going on where they’re building up a glass furnace in Aachen in Germany and has put everything on the back burner, any other project that didn’t care about it because they have to complete that task by the end of October, and we have their commitment and their work that we are getting back on board.

At the same time, I have to say that we have reached out now to the largest glass container organization also in the U.S., where we are working on a project with [indiscernible], where we are trying to position the solution which we have. At the same time, we are making inroads and engagement in Australia. And if you think about it, and this is whenever you have some more time, I can share with you some other basically leveraging the same solution where we are counting basically molds.

And that has an opportunity in roof tiles and other applications, which we are in right now. So the concept of that machine is giving us a lot of foundational opportunities going forward.

Operator

Herbert, another couple of questions. This is sort of 2 partner. We’ve been doing a lot of qualification work across our component manufacturing with the large aerospace and defense primes as well as on the coating and repair side of the business, particularly with Airbus. Fair question. When do we expect to get decent sized orders on either side of the business? That’s a fair question, nonetheless.

Herbert Koeck

I totally understand your impatience on that part. The fact is, as I said to you, that we were selected by Airbus after entering processes being their choice as a cold spray provider for service and repair of certain damages of certain repairs, which need to be done around the airplanes. We have been working with these guys, in Toulouse. What at this stage, any time any of these VP cases get certified they will look for to roll it out to all their MROs, all their rep centers around the clock. At this stage, we have a funnel for further machines with Airbus, which will happen in the future, not to say in the second half of this year. But the bigger rollout, obviously, will come at a point in time when we have certain repair cases certified.

Because even when I was, for example, with Sam in Abu Dhabi at a certain point in time, the guys said to me in October, Herbert, we know what we can do now with cold spray, but unless Airbus is signing it off and authorizing us to use that repair mechanism for our plans, we can’t do it. okay? So our whole emphasis at this point in time is do everything as fast as we can with Airbus to see to qualify and to certify certain processes, and that one will lead them to a rollout of these machines into the MROs into the service centers. An important element of that task is also to ensure, and this is the work we are doing with Airbus. They are highly interested in making sure that the repair is at a certain quality level.

Quality assurance is very important for the airlines not only for safety reasons. So we are working with airbus at the moment to come up with a solution, and we have a solution already at hand, which we have shown that we have the powder, which needs to then come from Titomic, which we can ensure that every repair is at the same level of quality, which is an important element for Airbus. And if this happens at this point in time, obviously, any other airliner would be highly interested to get into a similar setup with us, not to speak about Boeing, Embraer and all the other manufacturers Fa-plans across the globe.

Operator

Herbert, another question just about competitors. Have any of our competitors match Titanic in terms of cold spray technology and solutions?

Herbert Koeck

So the question is who do you see as competitors? — okay? Some time ago, I was asked, if I see, for example, any different manufacturing companies like 3ds systems or statuses, desktop metal or some others as competitors in the market. And the order we are digging into it is, I don’t say it that way, okay? For me, competition is casting setups. For me, competition is welding as a process while we can engage with the companies who are doing welding for railways welding on the oil rigs, welding in whatever oil and gas setups. So this is the competition we are really going against it. Some of the other players, which we are seeing in the market are playing in areas where they are trying to produce machinery even cold spray to produce on-demand but that’s not at the end of the day, if you think about it, where we are present as of today. We are not producing parts on demand.

So I think you can come to me with a cat file of a certain part. And tomorrow, I can produce it on one of our machines. We are acting at this point in time in the service and repair arena, which is a relative good short-term return where we are talking about months in some cases and then to roll out these machines in the bigger scale or where we are going against casting as such where we are trying to produce parts on the long run. But when you produce parts, you don’t need a system, for example, where you change the format and to set up every other minute, okay? So we are not producing on demand.

We are manufacturing parts at the larger scale in the hundreds going forward in the future in the thousands, but the target at the moment is in the hundreds. So all the other cold spray providers, there are some partners out there, some competitors out there, which are trying to produce on demand, which is a great area as long as it works for some smaller parts and some others which are with us competing, for example, in the service and repair arena. But some of these, we just could beat in the dental, for example, with Airbus.

And so we have come forward because the customer trust us more about our competency in the machinery we have. Will we see even more competitors in the future in cold spray? Absolutely. I have no doubt about, but we’re also trying to keep that kind of competitive advantage on the know-how and how to apply cold spray, where we have made some good experience and where we are, I would say, at least 2 years ahead of anyone else.

Operator

Another question just on our supply chain, particularly around the titanium powder. Do we see any issues going forward on that front?

Herbert Koeck

So you may know that titanium powders in the past, the predominant suppliers were either Russian or Chinese okay? Both are now getting basically flagged as geopolitically challenging, because obviously, we are not using any powder coming off Russia. We had certain engagement with some Chinese suppliers, and we still do where it makes sense. At the same time, we’re even getting paid now by some customers, specifically in the U.S. who are highly interested in that we are working together with powder suppliers which are domestic in the U.S. And as such, there are some talks happening between us and Purex, there are talks happening in the past between us and Amaro. There are talks happening, for example, with Hoganas and Oerlikon, which is actually an actual supplier of us. We even got paid by one of our customers to qualify a powder, which is coming from Oerlikon for certain type of products.

And we are still in the phase where we at any given time, obviously qualify these powders, which takes some time to make sure that the powder is behaving in a way that we can achieve the material properties which the customers are asking for us. So at this stage, to make a long answer short, at this stage, we do have sources from customers, from suppliers on powders, which are geopolitically okay. and not a problem at all. It’s still so that we have to optimize some of their powders, but we are working with these guys to get an optimal output.

Operator

And one last question, another valid one that we do here a little bit, when will Titomic need to raise capital.

Herbert Koeck

So at this stage, we are fully funded for fiscal year ’25, okay? We have made a good plan and the budget together with the Board, everything we wanted to do is funded. At this stage, we also have seen some great cash inflow, quickly based on the orders which we have seen. Going forward, will be a potential need to accelerate in one or the other place, Absolutely. But at this stage, we are funded for fiscal year ’25 and everything which we have on our agenda at this stage can be funded with what we have in the budget.

Adrian Mulcahy

Beautiful, there are no further questions.

Herbert Koeck

If, there aren’t any further questions then from my side, I’d like to thank you that you have spent the time with us today to listen in on the development of Titomic. As I said at the very beginning, I’m personally excited, okay? I’m now 3 years in, and I look forward to the next to the years ahead because I can see how this is shaping how close we are getting to some of these very large production businesses, which we are looking for. And we also have learned a lot on the way, okay?

A lot on the way in the sense of what is it, what we are good at, where we have a competitive edge going forward? And what is it, what we have excluded or the work we have been doing. Some of you may remember, we started off with 167 use cases. As of today, we are working on 5 or 6 and have a lot of other projects on the back burner on the bench, which is great because if one project isn’t working out in the time we’ve given to it, we have another one ready to chime in, and that’s a nice value which we have right now. And I’m looking forward to hopefully see as many of you as I can see in our next conference call. Thank you.