ASX Tech Quarterlies – Fatfish refines revenue streams for AI business

Fatfish Group’s June quarter was all about refining revenue streams for higher AI revenue
Zeotech’s high-reactivity metakaolin out of Toondoon kaolin is a major quarter milestone
Harvest Tech launches Nodestream Live following beta test program

Fatfish Group (ASX:FFG)

Tech/gaming venture firm FFG recorded total cash receipts of $580k compared to $1.128m in the preceding quarter, driven by management’s focus on refining revenue streams to achieve higher-quality revenue for its AI business as it moves closer to profitability.

The company says consequently there was greater efficiency with operating expenditure being 67% of cash receipts in the quarter compared to 81% in the last quarter.

During the quarter, FFG hosted a soft launch called Gem Rush of ‘hibur.io’ (pronounced he-boor) with the main aim of getting gamers’ input.

More than 5,000 gamers played Gem Rush with FFG saying it got the feedback it looked for from gamers.

Hilbur.io is a “unified social gaming platform with user and game management, an in-game currency system and third-party integration functions.” The platform doesn’t engage in real-money casino gaming.

FFG says it has proactively sought external legal advice on operation of Hibur.io, ensuring that it is compliant with the legal framework of the South-East Asian jurisdictions in which the platform is live.

The company says it will continue to scale up marketing for Hibur.io and launch new features for gamers and future third party app developers on the platform.

During the quarter, FFG entered into a deal to acquire up to 51% of AI-enabled game developer, AI Gaming Co.Pte Ltd (AIGC).

AIGC is focused on developing its Game Development Kit (GDK) which uses its AI enhanced capabilities in combination with existing game development workflows to significantly reduce production input requirements.

In addition AIGC is producing first-party development games to demonstrate the capabilities of its GDK and produce secondary immediate revenue.

FFG says AIGC’s pilot game Tatarot was launched earlier this year and has since generated more than 200,000 users.

Tatarot is an AI-powered tarot card reading app, “merging traditional tarot practices with AI-personalised art, providing users with a gamified experience.”

AIGC has three other games in development. FFG says the speed at which AIGC can develop games enables AIGC to take a quantity approach to its development – with the view that not every game will be a winner and result in massive uptake but some will.

Zeotech (ASX:ZEO)

Meanwhile, over at the emerging mineral-processing tech outfit ZEO, a research program with Central Queensland University confirmed that a high-reactivity metakaolin (HRM) can be produced from a range of its Toondoon kaolin profiles.

Production and use of cement account for ~8% of worldwide carbon dioxide emissions, highlighting a major market opportunity for the company.

During the quarter, ZEO also completed a test pit producing ~35 tonnes of high-grade raw ore kaolin, which will be used to manufacture HRM and advance commercial opportunities with cement and concrete industry participants, as well as scaling up manufactured zeolite production.

The produced kaolin is currently being processed at a Brisbane facility with the remaining product stockpiled at the test pit site to be accessed for further development as required.

ZEO says its methane emissions control program, in collaboration with Griffith University and Cleanaway (ASX:CWY) also progressed during the quarter.

The program aims to develop a zeolite-based technology (biofilter) that can be deployed within landfills’ surface capping soil.

During the quarter a provisional patent application titled Zeolites for Methane Control was lodged with the Australian Patent Office following extensive development of ZEO’s technology under the program.

A strategic decision was also made to extend infield trials by six months to evaluate the effectiveness of ZEO’s technology across broader seasonal conditions that present in typical landfill systems. The program completion is now expected in December 2024.

During the quarter a 500kg bulk sample of ZEO’s manufactured zeolite product was shipped to North American animal nutrition products company Protekta Incorporated for completing test production runs using ZEO’s materials.

ZEO’s dual-stream nutrient management and soil carbon research (agri-soil) program at Griffith University was also completed with positive results.

The company says the program validates potential of a ZEO agri-soil product to enhance the efficiency of fertiliser application, together with considerable potential to sequester organic and inorganic soil carbon.

During the quarter ZEO scored a handy half-a-mill R&D finance facility. Zeo’s cash position at June 30, was $2.268m

CEO Scott Burkhart lauded the high-reactivity metakaolin research with Central Queensland University were a significant milestone and have provided the catalyst for accelerated concrete industry engagement.

“Discussions with key industry participants are advancing well, with several potential opportunities being presented to the company,” he says.

“Further, the completion of a maiden test pit at Toondoon has allowed the company to extend concrete pilot testing opportunities with industry and has initiated the lifecycle assessment of a Zeotech HRM product.”

Harvest Technology Group (ASX:HTG)

Remote communications tech specialist HTG says the highlight of the quarter was the launch of Nodestream Live in June after a successful beta test program (where it was known as AVRLive Cloud).

The product is expected to significantly improve HTG’s speed to market by enabling customers to rapidly trial its products and then seamlessly move to production.

This, the company says, will be a key asset for securing enterprise and government clients worldwide.

HTG provides tech solutions to overcome challenges associated with remote video & data streaming, such as high latency and bandwidth constraints.

Its products work to optimise network bandwidth and ensure high-fidelity communication even in ultra-low connectivity environments.

HTG recorded revenue of $467k and cash receipts of $770k in Q4 FY24, which is 3.5% higher than the previous quarter.

A loan note placement to existing shareholders and new investors in May saw the company raise $1.217m (before costs).

In June HTG scored an additional order and full advance payment from its defence partner, Guerrilla Technologies to supply 30 of its Nodestream Integrated devices (NID) units.

The company says revenue will be recorded in July 2024 when the order gets shipped.

HTG started fund-raising via a convertible note placement to sophisticated investors in July, with the additional funding to ensure the group is sufficiently funded to continue its growth strategy.

HTG says it continues to undertake evaluation and due diligence of strategic acquisitions with high synergy potential as part of its three year plan, aimed at achieving profitability.

At June 30, 2024, HTG held $445k cash at bank.

At Stockhead, we tell it like it is. While Zeotech, Fatfish Group and Harvest Technology Group are Stockhead advertisers, the companies did not sponsor this article.