Weebit Nano Limited - FY24 Preliminary Financial Report
WEEBIT NANO LTD (WBT) Share Update August 2024 Tuesday 27th
Weebit Nano Reports First Revenue and Increased Losses in FY24
Weebit Nano Limited (ASX: WBT) has reported its first revenue from ordinary activities for the financial year ending 30 June 2024, alongside an increase in losses and a decrease in net tangible assets per share.
Instant Summary:
- First revenue from ordinary activities: $1,017,788.
- Loss from ordinary activities after tax increased by 6% to $41,245,241.
- No dividends declared for the year.
- Net tangible asset backing per share decreased to 32.530 cents from 45.092 cents in the previous year.
Financial Performance
For the financial year ending 30 June 2024, Weebit Nano Limited reported its first revenue from ordinary activities, amounting to $1,017,788. This marks a significant milestone for the company as it transitions from development to commercialisation.
However, the company also reported an increase in losses, with a loss from ordinary activities after tax attributable to members rising by 6% to $41,245,241. This increase in losses is attributed to ongoing research and development (R&D) activities, marketing, business development, and administrative costs.
Dividends and Net Tangible Assets
No dividends have been declared for the year ended 30 June 2024. The net tangible asset backing per share decreased to 32.530 cents, down from 45.092 cents in the previous year. This decline reflects the increased expenditures and the impact of the company's ongoing R&D investments.
Operational Highlights
During the year, Weebit Nano achieved several key milestones, including the qualification of its ReRAM technology at higher temperatures and endurance levels, the signing of new licensing agreements, and the completion of technology transfers to DB HiTek. These achievements are expected to drive future revenue growth and commercial success.
Weebit Nano also demonstrated its ReRAM module on GlobalFoundries' 22nm wafers and partnered with eFabless to broaden its user base at SkyWater. These collaborations are crucial for scaling the technology and expanding its market reach.
The announcement of the first revenue is a positive indicator of Weebit Nano's progress towards commercialisation. However, the increase in losses and the decrease in net tangible assets per share may raise concerns among investors about the company's financial health and sustainability. The ongoing R&D investments are crucial for long-term success, but they also contribute to short-term financial strain.
Investor Reaction:
Analysts are likely to have mixed reactions to the announcement. While the first revenue is a significant milestone, the increased losses and reduced net tangible assets per share may lead to cautious sentiment among investors. The company's ability to secure new licensing agreements and demonstrate technological advancements will be key factors in maintaining investor confidence.
Conclusion:
Investors should closely monitor Weebit Nano's progress in commercialising its ReRAM technology and securing additional revenue streams. The company's strategic focus on R&D and partnerships is essential for long-term growth, but it also presents short-term financial challenges. Staying informed about future developments and financial reports will be crucial for making informed investment decisions.