(MENAFN - ProactiveInvestors - Australia) Alexium International Group (ASX:AJX, AX: AJX, OTC QX: AXXIY) has strengthened its financial position with growing revenues from a previously awarded contract with the U.S. Air Force
The company has received its second progress payment on the contract with the U.S. Air Force Research Laboratory to demonstrate Cleanshell CB treatments for chemical and biological protection applications.
Additional progress payments on this contract are expected over the next five months.
Early test phases have demonstrated that the Cleanshell CB treatments can be applied to provide excellent water and oil repellency, but can also dramatically increase repellency of Chemical Warfare Agent simulants on a range of different fabric types.
The next phase will focus on testing against a range of "live" chemicals, such as Soman and Mustard nerve agents, on a number of Cleanshell CB treated fabrics.
While the work with the U.S. Air Force is proceeding on schedule, Alexium anticipates the potential for additional purchase orders from the U.S. Department of Defense in relation to its Cleanshell treatments.
Large target market
An estimated 200,000 chemical and biological protection suits are purchased annually by the U.S. military for programs such as JPACE, JC3 and JSLIST.
Over 4.5 million JSLIST suits alone have been sold globally since 1997, representing product sales in excess of 800 million.
Alexium is also continuing to receive revenue from commercial relationships related to the commercial roll out of its novel flame retardant nylon treatment.
The company recently made a major technical advance in the development of its Flame Retardant treatments and curing methods, allowing the product to use traditional heat curing methods.
Alexium has developed its novel, non-halogenated Flame Retardant chemistry for nylon so it can be applied with a standard "oven" as well as the company's microwave technology.
The ability to use traditional heat curing methods significantly lowers entry barriers to key markets and will speed up market introduction.
Alexium is currently working with commercial partners regarding high volume production, with licensing partner Duro Textiles expecting to begin production by the end of the first quarter of 2013.