ASX Quarterly Tech Wrap: Weebit Nano progresses ReRAM demo chips

It’s quarterly season again as the ASX market announcements page becomes increasingly flooded with update lodgements.

Here, we wrap up report highlights from three standout stocks in the ASX tech sector.

Weebit Nano (ASX:WBT)

Progress toward qualification of ReRAM demo chips at DB HiTek, remains on track to complete qualification mid-2025
Advances commercial discussions for licensing of ReRAM IP with leading industry companies
Strengthens sales team across several key markets in response to high demand for Weebit’s ReRAM

The developer and licensor of advanced semiconductor memory technology advanced qualification of its ReRAM technology for mass production at DBHiTek during the quarter, with its first demo chips currently being manufactured.

Once they return, WBT said testing and qualification would start. Once qualified, DB HiTek’s customer base – which includes blue-chip technology companies – will be able to design Weebit ReRAM into their chips.

Qualification of Weebit ReRAM on DB HiTek’s 130nm BCD process is expected in the middle of 2025, with the technology used across consumer, industrial, and internet-of-things applications.

WBT said during the quarter it advanced commercial discussions for licensing of its ReRAM IP with leading industry companies.

As a result of the increased business development activities and demand for ReRam, WBT has expanded its global sales infrastructure employing several, well connected and experienced personnel across key markets, including the US, Europe and Asia.

The company was granted nine new patents related to its ReRAM technology, further protecting the significant R&D achieved so far.

WBT remains well-funded for technical and commercialisation activities, with $57m cash in the bank as of September 30, 2024.

CEO Coby Hanoch said WBT continued to make significant progress on both the commercial and technical fronts.

Looking ahead to 2025, its board have defined some key milestones linked to incentives including, three new licensing agreements with fabs, three new agreements with product companies and to complete qualification with DB HiTek.

“Whilst these are ambitious goals to be achieved over 2025, they highlight the level of confidence we have in our technology and the demand we are seeing from fabs,IDMs, and product companies,” Hanock said.

“Tying 100% of my yearly equity grant to performance targets is not standard practice in the high-tech industry, but it shows the belief that both the board and I believe these goals will be achieved.”

Secos Group (ASX:SES)

Secos achieves record quarter for MyEco branded sales, which rose 62.8% on pcp to $900,000
Company launches re-usable, compostable carry bags into 76 IGA Rictchies stores
New compostable 12 Litre MyEcoBag was launched in 970 Woolworths stores in August

The developer and manufacturer of sustainable packaging and materials reported a record quarter for MyEco branded global sales, which were up 62.8% on pcp to $900k in Q1 FY25, and up 20.0% QoQ.

Sustainable Film sales were $200k, up 77.8% on pcp and up 7.9% QoQ. Council and waste management sales were $800k, up 2.6% on pcp and down 37.7% QoQ due to seasonality of council sales.

Gross margins continued to grow on a pcp basis as the company exited from its low margin traditional plastics business in Q2 FY24.

SES said the successful launch of its re-useable compostable carry bags into 76 IGA Ritchies stores opened up a new market for replacing paper and plastic check-out bags.

A new compostable 12 Litre MyEcoBag was launched in 970 Woolworths stores in August. SES said the MyEcoBag range was the category leader in compostable bin liner and kitchen caddy sales in both Coles and Woolworths, with 38% market share in in 850 Coles stores, and 44% market share in 970 Woolworths stores.

The company successfully tendered in Victoria for Ballarat Council with the first roll out in Q4 FY25 expected to deliver a $900k in sales.

SES said it had discussions with the Victorian Government following its formal response in June opposing the Draft Household Waste and Recycling Service Standard 2024, which proposes, among other recommendations, to ban the use of certified compostable bioplastic caddy liners in green bins as part of Victoria’s new four-stream waste and recycling system.

The company said the scope of the R&D projects in relation to the Solving Plastic Waste Cooperative Research Centre (CRC) program have been agreed on during the quarter.

SES’s cash contribution of $600k plus any in-kind contribution agreed to the CRC over three years unlocks additional $1.6m of cash and in-kind contribution in funding out of the $140.6m allocated to the CRC.

SES closed the quarter with a closing cash of $5.2m with no debt.

Fatfish Group (ASX:FFG)

Fatfish Group records total cash receipts of $630,000 during quarter, up from $580 in previous quarter
Operating expenditure drops to $760,000, marking reduction of 19% on previous quarter
Company focused and making progress towards positive operating cash flow

Tech/gaming venture firm FFG recorded total cash receipts of $630,000 during the quarter, an improvement from $580,000 in the previous quarter, which the company said reflected management’s continued focus on driving sustainable revenue streams across its businesses.

Operating expenditure for the quarter was $760,000, marking a reduction of ~19% compared to $940,000 spent in the previous quarter. FFG said the combination of an 9% increase in cash receipts and disciplined cost management has led to a net cash outflow from operating activities of $120,000, an improvement of 65% on the quarter.

“This highlights the company’s progress towards positive operating cash flow and its commitment to building long-term shareholder value,” FFG said.

During the quarter the company completed its investment in AI Gaming Co. Pte Ltd, an artificial intelligence-enabled game developer.

In its fintech division, under the ASEAN Fintech Group, FFG has concentrated efforts on streamlining product offerings to target sustainable market segments.

FFG said its payment division continued to grow during the quarter, driven by increased gross merchandise value from new customer acquisitions.

This resulted in a ~3% rise in revenue and an ~8% reduction in expenditure in the quarter. Several strategic initiatives were executed during the period with the division on on track to return to profitability by 2025.

FFG said it made significant progress in aligning its Insurtech business with a sustainable revenue model during the quarter by focusing on returning customers and the targeted acquisition of new customers in the automobile insurance segment.

The company was selected Bank Negara Malaysia to be among the first companies to submit an application for the newly introduced Insurance and Takaful Aggregation business license.

iCandy Interactive (ASX:ICI)

iCandy’s strategic cost optimisation plan pays off with net cash from operations up 52% on previous quarter
Several titles released including strategy game Stormgate and an animated series Playdate with Winnie the Pooh – Season 2
The Layer 2 Ethereum scaling blockchain network for gaming zkCandy successfully launched a public testnet trial during the quarter

The mobile games developer and publisher said it was reaping the benefits of its strategic cost optimisation plan with an increase in net cash from operations of 52% for the quarter compared to the previous quarter and a return to a net cash positive position for the first nine months of its financial year compared to the prior year.

During the quarter, the company’s AAA game art and animation studio, Lemon Sky Studios, announced the departure of its CEO and COO. The Lemon Sky Studios board has implemented a transition of leadership involving existing key studio executives and talents.

After quarter end, in early October, Lemon Sky Studios inked a MoU with JP Games Inc., a game development studio based in Japan, to explore collaboration opportunities in game development and other digital content services.

During the quarter Stormgate, a free-to-play real-time strategy game set in a sci-fi universe, was released. Stormgate was developed by Frost Giant Studios, an independent studio founded by former StarCraft and Warcraft developers.

An animated preschool series produced by Oddbot Inc titled a Playdate with Winnie the Pooh – Season 2 was also released during the quarter.

FFG’s mobile games development studio Appxplore announced several mobile game releases during the quarter, including Snaky Cat and CryptantCrab Prime.

During the quarter, zkCandy, the Layer 2 Ethereum scaling blockchain network for gaming, successfully launched a public testnet trial. Upon completion, the zkCandy team will work toward launching a mainnet, currently slated for Q4 2024.

During the quarter, management teams of both ICI and Flying Sheep Studios decided to shut down Flying Sheep by the end of 2024. The move is moderately expected to benefit the group’s income statement as ICI will no longer need to consolidate the losses of Flying Sheep Studios.

At Stockhead, we tell it like it is. While Weebit Nano, Secos Group, Fatfish Group and iCandy Interactive are Stockhead advertisers, they did not sponsor this article.