New MoU, but no illumination on where smart light maker Quantify’s first revenue is coming from
Smart light switch maker Quantify has signed yet another MoU as it starts looking abroad for customers, but there’s still no sign of revenue.
Since listing in March 2017, Quantify (ASX:QFY) has never made any sales revenue in spite of signing a series of agreements, and has pushed first revenue out to mid-2019.
Today it unveiled an MoU with CASwell Inc “to develop processes for the volume manufacture of the company’s products”.
With paying customers in Australia in short supply — it’s only managed to secure one purchase agreement in almost two years — it’s now looking overseas for sales of its smart home systems.
The CASwell MoU, which Quantify did not give a timeline on as to when it may turn into a contract, as well as patents in Asia and Israel, are indicative of the company’s new overseas ambitions.
The company has struggled to hold on to directors, but the ones left at the end of December received a serious whack of performance rights worth hundreds of thousands of dollars at the current share price.
Chairman Aidan Montague resigned in May. His successor Lee Christensen and another board member who was appointed in May both resigned in September.
The company made a full year loss in 2018 of $6.8m, but still paid its board $1.1m.
And at the end of December, CEO Brett Saville got 40m performance rights, while Gary Castledine and chairman Peter Rossdeutscher received 20m each.
They’ve already got the first tranche, the condition for which was completing an underwritten $4m capital raising in November.
The second relies on the company making $5m in cumulative revenue in the two years from October 2018, and the last tranche comes if they reach a market cap of $45m — they’re currently at $5.7m.
Quantify shares rose 14 per cent on Wednesday morning to 0.8c.