By Matthew Kappers, CEO

In an effort to maintain clear and consistent communications, we are providing the following business update that touches on both recent news as well as the road ahead. 

First, the share exchange agreement with Core Optics LLC continues to progress forward and closer to completion. Upon closing, Core Optics will be wholly owned by The Coretec Group. As noted last month, many of the closing conditions required to complete the Agreement were resolved. Specifically, these conditions spanned a warrant repurchase agreement, Series A Preferred stock conversion, and audit requirements have all been addressed or are nearing completion. Find the full release here. 

More importantly, Core Optics was able to publicly disclose its revenue projections, estimating $8 million in revenue for 2024, and $16 million in 2025 – an increase of 100%. In order to meet the growing demand and fill current orders, Core Optics is ramping up production efforts by purchasing additional manufacturing equipment and raw materials as well as expanding its team.   

Core Optics primary revenue driver is the production of compact camera module (CCM) testing equipment for new autos, particularly EVs.  Many of these vehicles have as many 12 separate cameras surrounding them for such purposes as backup (rear), cross traffic, forward collision, and parking. It is now a common industry practice for every CCM to be tested prior to being placed in service. As a result, the compact camera module category is exploding, especially in EVs.  

The growing demand and revenue for EV components also illustrates the market potential for Endurion, which we continue to believe represents a key asset for the Company moving forward. The EV sales channel is also ideal for consideration of Endurion, our silicon anode material, and its application to batteries. In fact, the Core Optics management team is currently hosting discussions with leading Korean cathode and battery developers, showing the diversity of and interest in advancing Endurion. 

We anticipate providing updates as they occur, and appreciate the continued support for Coretec.