Ceretas Limited Secures $2.39 Million Government Grant to Propel Alzheimer's Therapeutic Ultrasound Development

Business Focus and Licensing Agreement with UniQuest

Ceretas Limited operates as a research and development entity dedicated to advancing innovative therapeutic ultrasound technology through a licensing agreement with UniQuest Pty Limited. The company’s core activity during the reporting period centered on developing a portable, image-guided therapeutic ultrasound platform designed for treating neurodegenerative diseases, with a special focus on Alzheimer's disease. This licensed technology, known as the Ceretas Technology, constitutes the intellectual property foundation of Ceretas’ commercialisation strategy and is recorded as an intangible asset on the balance sheet.

The technology platform represents a significant investment in proprietary intellectual property rights. As of 31 December 2025, the intangible asset related to the licensed intellectual property was valued at $362,222 on the financial statements. This exclusive licensing arrangement enables Ceretas to commercialise the technology and develop therapeutic applications for neurodegenerative disease treatment, strengthening its competitive position as it advances toward commercialisation and wider market deployment.

Government Grant Boosts Development Progress

In July 2025, Ceretas reached a key milestone by securing a $2.39 million grant from the Australian Government’s MRFF CUREator+ Dementia & Cognitive Decline program. This funding underscores government recognition of the therapeutic potential of Ceretas’ next-generation ultrasound device for Alzheimer's and related neurodegenerative diseases. The grant is dedicated to accelerating technology development, clinical validation, device refinement, and preparation for commercialisation.

The interim period saw $673,449 of government grant income recorded, reflecting initial drawdowns. The milestone-based disbursement structure of the grant provides both financial backing and validation of scientific progress, enabling Ceretas to advance its development while building evidence for regulatory approval and commercialisation.

Interim Financial Performance Overview

For the half-year ended 31 December 2025, Ceretas reported a loss of $361,022, compared to a $17,489 loss for the shorter period from 21 October 2024 to 31 December 2024. Total income reached $688,050, primarily from government grants ($673,449) and interest income ($14,601). Operating expenses totaled $1.05 million, with $673,532 allocated to research and development and $375,540 to general and administrative costs. These figures reflect the company's transition into an active development phase with substantial investment in advancing its therapeutic ultrasound technology.

The capital-intensive nature of therapeutic device R&D is evident, with research and development expenditure constituting the largest operational cost. General and administrative expenses support the company’s operational infrastructure. Net operating cash inflow was $641,727, boosted by grant receipts, while investing activities used $98,224, mainly for equipment acquisition. The cash flow profile highlights government funding’s role in offsetting operational expenses during development.

Strengthened Balance Sheet Through Capital Raising

As of 31 December 2025, Ceretas’ net assets stood at $2.26 million, up from $1.20 million at 30 June 2025. Cash and cash equivalents totaled $2.89 million, providing ample resources for ongoing R&D. This cash position reflects government grant receipts, share application funds, and interest income during the period. The increase in net assets, despite operational losses, was primarily driven by capital injections and grant funding.

During the interim period, Ceretas raised $1.5 million in share application funds, issuing 9.375 million shares at 16 cents each on 5 January 2026. This capital raise signals investor confidence in the company’s therapeutic ultrasound development and growth prospects. Combined with government grant funding, Ceretas is well-funded to advance development, clinical validation, and regulatory approval efforts.

Employee Incentive Options and ASX Listing Preparation

In October 2025, Ceretas granted 890,000 employee options as part of an incentive scheme. These options vest contingent upon successful admission to the ASX and fulfillment of other vesting conditions. The exercise price includes a 50% premium over the IPO price, with a five-year expiry from the IPO date. This structure aligns employee interests with the company’s public listing and growth objectives.

Such option grants are typical for pre-listing biotech and medical device firms aiming to attract and retain talent. In addition to these options, Ceretas holds 240,000 options expiring 10 October 2030 and 650,000 options expiring 27 October 2030, each with an exercise price of $0.375. These equity-based incentives represent potential future dilution but support the company’s development phase.

Brisbane Headquarters and Institutional Ecosystem

Ceretas is headquartered at Level 4, 260 Queen Street, Brisbane, Queensland, serving as both its principal and registered office. The Brisbane location situates the company within Australia’s expanding biomedical and healthcare innovation sector, close to research institutions, clinical facilities, and venture capital networks along the east coast. This positioning provides access to Queensland’s medical expertise and infrastructure essential for clinical validation and commercialisation.

The board includes Chairman John Keep, Dr Rachel de las Heras, Dr Anthony Keating, Mr Sam Wetzler, and Dr Stuart Crozier, bringing expertise in therapeutic technology development and commercialisation. Company Secretary Ms Nicki Farley supports governance and administration. Audit services are provided by BDO Audit Pty Ltd in Brisbane, reflecting local market knowledge and life sciences sector experience.

Intellectual Property Strategy and UniQuest Licensing

Ceretas’ intellectual property is based on a licensing agreement with UniQuest Pty Limited, granting rights to the Ceretas Technology. This model allows the company to access validated therapeutic ultrasound IP without bearing the entire upstream R&D burden. The $362,222 intangible asset recorded as of 31 December 2025 represents this licensed IP’s value. This approach enables Ceretas to focus capital on commercialisation, regulatory approval, and clinical validation rather than foundational technology development.

Licensing from a university-affiliated commercialisation entity like UniQuest provides Ceretas with scientifically validated technology, strengthening regulatory and clinical evidence. The Ceretas Technology reflects research outcomes progressed through university development cycles, allowing the company to leverage academic expertise while concentrating on commercial application. The licensing framework offers structured IP access and flexibility as Ceretas advances toward commercialisation, clinical trials, and regulatory approval for Alzheimer's therapeutic applications.

Positioning in Neurodegenerative Disease Therapeutic Market

Ceretas targets the therapeutic device sector focused on neurodegenerative diseases, primarily Alzheimer's disease. This market addresses significant unmet clinical needs, with millions affected worldwide and limited effective treatments. Ceretas’ portable, image-guided therapeutic ultrasound platform offers a non-invasive treatment option aimed at improving cognitive function and memory.

Therapeutic ultrasound is an emerging global research area for neurological disease treatment. Ceretas’ Australian-designed technology aligns with government health priorities, as evidenced by MRFF grant support. Participation in the MRFF CUREator+ Dementia & Cognitive Decline program highlights government commitment to accelerating next-generation dementia treatments, situating Ceretas within a supportive R&D ecosystem.

The neurodegenerative disease market offers long-term growth potential driven by aging populations and increasing Alzheimer's prevalence. Ceretas’ technology development aligns with these trends, underpinning government and investor support.

Development Roadmap and Upcoming Milestones

The interim results highlight progress toward critical development milestones. The $2.39 million government grant confirms validation of the development pathway. Employee option grants contingent on ASX listing indicate advancement toward public market admission. The $1.5 million share application funds and subsequent share issuance in January 2026 demonstrate successful capital raising and investor confidence.

Near-term priorities include deploying government grant funds to accelerate device development, clinical validation, and commercialisation readiness. The $2.89 million cash position supports ongoing R&D and regulatory pathway advancement. Milestones include completing ASX listing, continuing research funded by grants and equity, and progressing clinical studies to support regulatory submissions. The board remains focused on commercialising therapeutic ultrasound technology for Alzheimer's treatment.

Financial Risks and Pre-Revenue Development Challenges

Ceretas operates as a pre-revenue therapeutic device developer, facing risks related to intensive R&D, regulatory uncertainty, and commercialisation execution. The interim loss of $361,022 despite $688,050 in income illustrates the capital-intensive nature of development. R&D expenditure of $673,532 reflects ongoing investment with an uncertain timeline to revenue, creating cash runway risks. The company depends on government grants and equity rather than operational cash flow, making future profitability contingent on successful development and regulatory approval.

Regulatory approval requires clinical validation and submissions to health authorities, with timelines spanning multiple years and uncertain outcomes. The licensed technology from UniQuest introduces dependencies on the licensing agreement, including potential royalty or milestone payments. No commercial sales revenue was recorded during the period, with income limited to grants and interest. Patent protection details were not disclosed, leaving questions regarding intellectual property defensibility and competitive positioning in the therapeutic ultrasound market.