Security Matters consolidates first-mover advantage in the global circular economy with strong H1 momentum
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SMX’s half-year results underpin its strategy execution as it stays at the forefront of a newly developing global industry.
Security Matters (ASX:SMX), a company focused on digitising physical objects on the blockchain to enable a circular and closed loop economy has executed on a strong first-half as it builds out its multi-channel commercialisation strategy.
The company’s market update this morning clearly showed that H1 was all about building out on its existing technology advantage, as the company signed off on a suite of new product launches and research partnerships.
And while it lays the groundwork for long-term growth, it also built commercial momentum with US$532,000 of receipts and receivables from customers – a gain of 237% from the prior year period.
And following a successful $5.3m capital raising in the June quarter, the company is launching into FY22 with a strong balance sheet and a disciplined approach to research and development as it stays at the frontier of a rapidly-growing global sector.
Among SMX’s operational highlights, the company highlighted the successful launch of a revolutionary conveyor belt detection system that allows plastic products to be accurately tagged and reused.
The strategic rationale of the project is to monetise the many years of IP that Security Matters has developed – both with in-house R&D and in-field as part of its development work with existing plastics companies.
Utilising SMX’s blockchain technology, the platform accurately identifies, authenticates and quantifies plastic inputs on an industrial scale.
And having completed its successful pilot test program, SMX has commenced discussions with its current research partners for a commercial roll-out of the platform.
In addition, SMX also flagged exciting developments in its other development projects that it’s now showcasing on a semi-industrial scale.
Among those projects is the application of its technology with a Tier 1 global tyre company to implement accurate identification and certification measures across all stages of the tyre lifecycle.
The showcase demonstrated the technology’s capacity to accurately identify rubber made from ethical sources, digitally certify it and enable the efficient recycling/reuse at the end of the tyre life.
Switching to the global fabric and textiles sector, SMX also took a key step forward in connection with its research collaboration with the Israeli Cotton Board.
The company’s technology was successfully deployed to mark cotton plants at the seed stage, providing proof of a benchmark that can be utilised by the global cotton industry to ensure products are ethically sourced.
SMX’s technology “is also able to identify any dilution or substitution to the organic cotton”, the company said, giving an added layer of assurance for end-users.
“This partnership with the ICB allows companies to verify that all organic cotton sourced from Israel meets minimum quality standards, proof of origination, ESG requirements and sustainability — beyond just a paper certificate,” SMX said.
As the technology’s use-case is proved out across multiple different global sectors, SMX also took steps in H1 to secure an added layer of IP protection in the half-year with a patent filing for its computerised Exchange Platform.
The platform will provide for the blockchain-based distributed management of electronic certificates associated with plastic units that meet the sustainability standards enforced by SMX’s technology.
In that context, the certificates will provide proof of ethical sourcing which can be converted into plastic credits that are given a monetised trading value, thereby allowing SMX’s technology to act as the platform for a new clean-energy marketplace.
With a multi-channel rollout plan heading into the second half of 2021, SMX is focus on converting its excellent start to the year into more commercial opportunities.
The company is “well-resourced to scale its technology to enable global businesses to transition to a truly circular economy, where sustainability, transparency and traceability of origination are a key focus”, SMX said.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.