Weebit Nano Q2 FY25 Quarterly Activities Report

Key highlights:

• Weebit Nano’s Resistive RAM (ReRAM) technology further validated with onsemi licensing deal
• Well supported capital raise at a 6.5% premium to the 5-day VWAP to raise A$50 million
• Qualification of ReRAM technology set to be completed at DB HiTek in 2025
• Progressing commercial and technical discussions with multiple integrated device manufacturers, foundries, and product companies for the licensing of Weebit’s ReRAM IP
• Strengthening the Board with the appointment of Anne Templeman-Jones as non-executive eirector
• Remain well-funded for growth, with significant $97 million cash balance as of 31 December 2024
  

Weebit Nano Ltd. provides this activity report for the quarter ended 31 December 2024 (02 FY25), along with the company’s Appendix 4C cash flow report.

Coby Hanoch, CEO, Weebit Nano, said: “Weebit has further cemented its position as the leading independent provider of ReRAM through the licensing of its technology to onsemi {NASDAQ:ON}, one of the world’s top semiconductor companies. Sealing a licensing deal with a company the caliber of onsemi, an S&P 500/NASDAQ100 company and a leader in power solutions for broad industries, reflects the industry’s realisation that Weebit ReRAM is the best form of non-volatile memory in the market. The teams have initiated the project on multiple fronts, including technology transfer and design”

“The onsemi collaboration is also helping in our discussions with other potential customers to license out our ReRAM IP, as it shows that major players in the space are embracing ReRAM as the preferred non-volatile memory solution. We are committed to converting some of these opportunities by the end of 2025, in line with the Company’s stated commercial milestones. onsemi is the first of at least three licensing agreements with Jabs, and three agreements with product companies, that we aim to close by the end of 2025, along with the completion of qualfication with DB HiTek.”

“The Performance Rights payable to Weebit’s management are tied to achieving these milestones, as outlined by the Board at the Annual General Meeting. This ensures total focus on getting more commercial engagements completed”

“The appointment of Ms Anne Templeman-Jones as non-executive director further bolsters the Board, adding deep knowledge and experience across corporate governance, finance, and enterprise risk management.”

“The A$50 million raise, done at a 6.5% premium to the 5-day VWAP, leaves us with over A$97 million in the bank at the end of the quarter, enabling Weebit to expand its commercialisation efforts, while undertaking R&D to continuously advance its ReRAM technology”

“In December, Weebit had an excellent ICCAD show, the largest electronics show in China. Post quarter end, in January, Weebit participated at CES in Las Vegas, the leading industry event which hosts over 140,000 people. We met with many of the world’s leading banks and many potential customers. The reaction to the onsemi announcement and the raise we did was extremely positive, reflecting the image Weebit now has as a leading non-volatile memory provider in the industry”

“No matter which application you consider, Weebit ReRAM has a list of sigmficant advantages over flash, which are ‘must have’.”

Milestone license deal with onsemi
Weebit signed a pivotal contract at the end of the quarter, licensing its ReRAM technology to tier-1 semiconductor supplier, onsemi. Weebit’s ReRAM IP will be integrated into onsemi’s Treo platform, which is a Bipolar CMOS, DMOS (BCD) process, providing it with embedded NVM. ReRAM integration into a BCD process enables a cost-effective and low-power NVM solution that has strong retention at high temperatures.

As an integrated device manufacturer (IDM), onsemi manufactures its own products, which also makes it a product company as well as a fab. This differs from the approach taken by other foundries, which manufacture for product companies who typically prefer to wait until after qualification before engaging. An IDM deal expedites the timeline to mass production, resulting in quicker royalty generation for Weebit. Weebit and onsemi are already identifying the first products which will use Weebit ReRAM. Under the agreement, Weebit will receive revenues from licensing, non-recurring engineering (NRE) fees, and royalites based on production volumes. The duration of the agreement is considered to be long-term due to the lifespan of onsemi products.

$50 million capital raise at a premium significantly strengthens balance sheet
Weebit raised A$50 million at a 6.5% premium to the 5-day VWAP via a strongly supported Placement from new and existing institutional investors, giving the Company a cash balance of A$97 million as at 31 December 2024. This enables Weebit to focus on closing more commercial deals, along with continuing to improve the firm’s technology through R&D spend.

Over the quarter, the company received R&D grants to further boost its cash position, which included a A$4.5 million grant received from French tax authorities, and an additional A$145k grant from Israel tax authorities. Weebit also received $483k in payment from customers.

Key operating cash flow items during Q2 FY25 include R&D expenses of A$10.1 million and payments to related parties, including fees paid to Directors and the CEO’s cost of payroll, stood at A$313k.

Strengthening the Board with NED appointment
On 1 January 2025, Weebit strengthened its board by appointing Ms Anne Templeman-Jones as non-executive director (NED). Ms Templeman-Jones brings a range of expertise to Weebit including business acumen, corporate governance, strategy and finance, as well as enterprise risk management for complex organisations. Ms Templeman-Jones’ career spans 35 years of executive and board roles across major companies and multiple industries including board roles with Commonwealth Bank of Australia Limited, Blackmores Limited, Cuscal, Worley Limited, GUD Holdings Limited, The Citadel Group, TAL Superannuation Australia, and HBF Private Health Insurance, among others. Ms Templeman-Jones currently sits on the boards of New South Wales Treasury Corporation (TCorp), Trifork AG and Erilyan Pty Ltd.

New patents
During the quarter, Weebit Nano was granted 4 new patents describing different inventions related to its ReRAM technology. These include unique design techniques that reduce the die area of the ReRAM module and enhance its reliability. Other patents relate to programming algorithms and device physics. The company continues to strengthen its patent position with over 80 patents and patent applications to-date.

Qualification progress at DB HiTek
Weebit made progress on the qualification of its ReRAM technology for mass production at semiconductor manufacturer, DB HiTek, where testing of the initial wafers has started. The technology is expected to be used by DB HiTek’s clients, which includes blue-chip technology companies, for loT, consumer, and industrial applications. Process qualification at DB HiTek is expected to be completed in 2025.

Weebit participation in industry events
Weebit Nano attended key industry conferences to further educate the industry on the company’s ReRAM as the leading NVM to replace traditional NVM technology. Weebit attended CSIA-ICCAD 2024 in Shanghai, the largest semiconductor conference in China, where it demonstrated its recent technology and further progressed with its commercial and technical discussions.

In January, the company attended the Consumer Electronics Show (CES) in Las Vegas, which hosted over 140,000 attendees this year. Weebit met with many potential customers, investors, and press, and gathered very positive feedback on its recent progress and expansion of its market opportunities.

Strengthening commercial foundations
Weebit continues to advance discussions with multiple foundries, IDMs, and product companies. Each of these discussions is at different stages, as these engagements could last several years. The agreement with onsemi is clearly affecting these potential customers, and Weebit expects to close several additional agreements in 2025.

Weebit Nano’s Board is committed to achieving its milestones by the end of CY 2025, including:

1. Completion of qualification with DB HiTek;
2. Three new licensing agreements with fabs; and
3. Three new agreements with product companies.

Investor briefing details
Coby Hanoch, CEO, will participate in a ‘Meet the CEO’ interview covering the company’s quarterly update at 4:00pm AEDT on Friday 31 January 2025. Participants will have an opportunity to ask questions at the end of the webinar.