FBR (FBR) Update / Briefing Transcript

Summary of FBR (FBR) Update / Briefing August 12, 2025 Company Overview - Company: FBR (FBR) - Industry: Robotics and Automation in Construction Key Highlights 1. Reduction in Annual Burn Rate: FBR has successfully reduced its annual burn rate to approximately $10 million to $12 million [1] 2. Funding Arrangements: Secured funding arrangements totaling up to $22 million, including a facility from GEM for $20 million and a recent capital raise of $1 million [2] 3. Product Launches: Introduction of a new product called Mantis, a large welding robot, and ongoing development of Hadrian robots [3][11] Sales and Market Developments 1. Hadrian Robot Sales: An MOU has been established to sell a Hadrian robot to Habitat NT for $7.8 million, targeting the construction sector in Northern Territory [4][5] 2. Market Demand: Increased demand for construction due to government grants and defense infrastructure projects, leading to a shortage of brick and block layers [5][6] 3. Global Interest: Significant inbound interest in Hadrian sales from various regions including Australia, the USA, UK, UAE, and Indonesia [7] Strategic Partnerships 1. Collaboration with Samsung Heavy Industries: Engaged in an engineering services agreement to automate shipbuilding processes, with phase one expected to be completed this calendar year [8][10] 2. Focus on Automation: Samsung Heavy Industries is looking to automate various aspects of their operations, which aligns with FBR's technology offerings [9] Product Development 1. Mantis Features: Mantis is designed for heavy fabrication industries, featuring an eight-meter reach and the ability to work in multiple zones simultaneously [13][14] 2. Target Markets for Mantis: Aimed at industries such as mining, shipbuilding, and defense, with potential applications in large-scale fabrications [12][16] 3. Future Developments: Plans to explore larger versions of Mantis and other applications in the steel industry [40] Financial Strategy 1. Self-Funding Intent: FBR aims for new product offerings like Mantis to be self-funding, utilizing existing resources and teams [28] 2. Sales Pipeline Development: Focus on converting leads into sales to achieve cash flow positivity, with a strong emphasis on sustainable growth [41][45] 3. Funding for Expansion: Plans to use existing funding arrangements to support the commissioning of additional Hadrian robots and development projects [37] Market Positioning 1. Target Market for Hadrian: FBR is targeting a range of builders, from small to large, to address the housing crisis in Australia and globally [23][25] 2. Wall as a Service Model: Exploring a service model where Hadrian robots are contracted out rather than sold, particularly appealing to mid-sized builders [25][27] Challenges and Risks 1. Sales Cycle: The lengthy sales cycle for capital equipment like Hadrian robots may delay cash flow positivity [44] 2. Dependence on Third Parties: Future phases of projects and sales are contingent on third-party decisions and market conditions [30][56] Conclusion FBR is strategically positioned to capitalize on the growing demand for automation in construction through innovative products like Hadrian and Mantis, while navigating funding and market challenges to achieve sustainable growth and profitability.