Strategic Elements Limited marked FY26 with the first commercial deployment of its EdgeiQ system in mining and significant progress on its moisture-powered Energy Ink technology, while raising $2.5 million in capital and reporting a net loss of $2.48 million.
- First commercial EdgeiQ deployment with Tier 1 miner
- Energy Ink prototype fabrication scaled to commercial facility
- Japanese patent granted for Energy Ink technology post-year-end
- $2.5 million raised via oversubscribed Share Purchase Plan
- Net loss of $2.48 million with $4.7 million cash reserves
EdgeiQ Breaks Ground with Mining Pilot
Strategic Elements Limited (ASX:SOR) took a significant step forward in FY26 by deploying its EdgeiQ™ operational intelligence system in a live underground gold mine operated by a major global producer in Western Australia. This pilot contract, valued at approximately $225,000 excluding GST, marks the transition of Stealth Technologies, the company's 100%-owned subsidiary, from development into commercial application.
EdgeiQ™ aims to unify fragmented operational data across industrial environments, starting with mining, to provide real-time insights where people, vehicles, and equipment interact. The system's foundation includes collaborations with Honeywell, CSIRO, and the University of Western Australia, with prior deployments in autonomous security vehicles at a regional prison.
The pilot involves supply, installation, and a 12-month software licence, with system integration and operational testing progressing through the latter half of FY26. Mining's global operational similarities offer Strategic Elements a scalable pathway for EdgeiQ™ beyond this initial deployment, with early commercial discussions underway in adjacent industries.
Energy Ink™ Moves Towards Commercial Viability
Australian Advanced Materials Pty Ltd (AAM), another wholly owned subsidiary, advanced its Energy Ink™ technology, designed to generate electrical energy from moisture. FY26 milestones included the fabrication of over 2,000 prototype cells in a commercial printed-electronics facility, achieving a 99.95% pass rate on compliance testing. This demonstrated reproducible manufacturing outside laboratory conditions, a crucial step for future integration with printed electronics and packaging.
Development pathways for Energy Ink™ have diversified, focusing on near-term battery-free electronics applications such as interactive packaging and authentication systems, and longer-term engineered moisture energy platforms. The company completed engineering design for a portable Moisture Energy Dock, a device intended to accumulate and transfer moisture-generated energy into standard lithium-ion batteries, aiming initially to power a one-minute voice call on a feature phone.
Post-year-end, AAM secured a Japanese patent for key elements of Energy Ink™, solidifying intellectual property protection in a market critical for electronics manufacturing and materials innovation. This patent supports ongoing global applications and potential collaborations.
Capital Raising and Financial Position
Strategic Elements strengthened its balance sheet through an oversubscribed Share Purchase Plan (SPP) that raised $2.5 million, exceeding $3 million in applications. This capital injection is earmarked to support the continued development and commercialisation of EdgeiQ™ and Energy Ink™, as well as the evaluation of new ventures under its Pooled Development Fund (PDF) mandate.
Despite these advances, the Group reported a net loss after tax of $2.48 million for FY26, slightly improved from the prior year’s $2.56 million loss. Operating cash outflows were $1.75 million, with year-end cash reserves standing at $4.71 million. The Directors affirm the going concern basis, supported by cash forecasts and sensitivity analyses accounting for economic conditions over the next 12 months.
Management and Remuneration Updates
Executive remuneration remains closely tied to performance milestones, with significant share-based payments recognised during the year. Notably, 5.8 million performance rights vested and converted to shares following achievement of specified commercial conditions, including customer payments and profitability targets for Stealth Technologies.
David Lim joined the Board as Executive Director in December 2025, bringing over a decade of experience in innovation and project management across resources and emerging technologies, including direct involvement with EdgeiQ™ and Energy Ink™ development. Matthew Howard resigned as Executive Director at the same time but continues as Company Secretary.
Risk Management and Outlook
Strategic Elements continues to manage inherent risks associated with early-stage technology ventures, including research and development uncertainties, intellectual property protection, and reliance on key personnel. The Company maintains compliance with its PDF registration, which underpins tax concessions vital to shareholder returns.
While the company’s ventures remain in the development phase, the successful mining pilot and Energy Ink™ fabrication milestones provide tangible progress towards commercialisation. The coming year will be critical to validating these technologies in operational settings and securing strategic partnerships or investors to scale deployment.
Bottom Line?
Strategic Elements balances early-stage innovation risks with tangible progress in mining AI and moisture energy technologies, underpinned by a solid cash position and shareholder-backed capital raise.
Questions in the middle?
- Will EdgeiQ™ expand beyond mining into other industrial sectors within the next 12 months?
- How quickly can Energy Ink™ overcome technical hurdles to enable commercial battery-free applications?
- What new ventures might Strategic Elements add to its portfolio under the Pooled Development Fund structure?