Weebit Nano Limited (WBT) Earnings Call Transcript & Summary

Good afternoon, everyone. To see politeness -- my name is David, Dadi Perlmutter, and I have the privilege of being the Chair of Weebit Nano. It is my pleasure to welcome you to the 2024 Annual General Meeting of Weebit Nano [ Screen ]. It is now 3 p.m. AEDT, the time appointed for the meeting. And as we have a quorum, I declare the meeting open. The notice of meeting was distributed on 24th of October 2024, which set out the business and resolutions to be considered in this meeting and then we take the notice of meeting as read. In addition to our in-person meeting in Sydney, we're also conducting the meeting with a virtual component. This hybrid format allows shareholders and proxies wherever they may be to attend virtually. All shareholders and proxies can ask questions and vote today. For those of you online, should you experience any technical difficulties, a recording of the AGM will be available on our merit following. If we experience any technical issue during the meeting, a short recess may be required. Should this occur, we will communicate accordingly. Shareholders will have the opportunity to ask general questions after the conclusion of the formal items of business. For those attending virtually, do you see, the steps as outlined on screen. For those attending the meeting in person, please raise your hand when prompted and you will be called upon at the appropriate time. Today, I'm joined by my fellow directors, CEO, Coby Hanoch; Ashley Krongold; and Naomi Simson. Today, we have also presented -- present, our CFO, Alla Felder, online; representative from our company's head office, company [ host ] [ Ananda ] and Gabriel. Michael Fay, our auditor on Nexia Perth is online and Michael [ Stratham ] from our share registry, Computershare Investor Services will also act as our returning officer.

I guess, Eric Kuret from Automic, our IR.

Sure.

And sitting next to him, just...

You help me, right. Document.

And since I'm already interrupting, we have Andrew Johnston, there from MST who wrote an analysis report about Weebit and we'll talk about it later.

I'd like that to make a short statement as a Chair. Heading into calendar year 2025, the Board is confident that Weebit Nano can deliver over the next 12 months. This is because Weebit has now tied its accountability to deliver on its commercial agreements to [indiscernible]. As outlined in national solutions, there will be no allocation of equity to the CEO unless specific milestones are met, including signing 3 licensing agreements for the new foundries and for our integrated device manufacturers signed -- I'm sorry.

The camera looks a bit...

Okay, yes. They [ won't ] see my face.

They force you to work.

I'm sorry.

They force you to work.

Yes, wouldn't there be some make up or something, no? Okay. I'll repeat the last sentence. There will be no allocation of equity to CEO unless specific milestones are met, including selling 3 licensing agreements with new foundries and/or integrated device manufacturers, signing 3 new agreements with product companies and completing qualification with DB HiTek. Moreover, we have decided, for the same reason, not to allocate any equity this year to the Chairman and I believe this is a true indication of the confidence we have and the importance we see in achieving this milestone for the success of the company long term. I believe an ability to sign customer agreements is of utmost importance to achieving of dividends. We are here to talk about Weebit, but geopolitical economic world around us is undergoing huge shifts. First, from an economic point of view, post COVID, higher inflation and higher interest rates, though trending down in the last few quarters in most places, is affecting investment appetite within investment valuation, with investment in tech [indiscernible] reached in 2022. Secondly, the geopolitical strife in Europe and Middle East continues and cross-border economic tensions are ruling over technology and [indiscernible]. And with the new action in the U.S. may challenge this situation even further. I'm not going to try to tell you what the direction I believe it would, but will take some direction, that's for sure. And the cross the border economic tensions are brewing over technology, these semiconductors, AI, cybersecurity and finance between the West and the [ British ] nation. Third, the move into new technologies and the acceleration of the digital transformation with the advent of AI [indiscernible] in the past few years is creating huge demand for semiconductor products. I always say that semiconductors, to the digital world and AI-based wall is like oil to the industrial economy. So semiconductors, nothing that you see [ advance ]. And finally, Weebit has quickly adjusted the conditions of the war in the Middle East on the [ last fall ] demands is minimal to no impact in its execution as a company. We will continue to utilize its resiliency, its ability to [ move ] with these ongoing changes [indiscernible]. Weebit Nano has had another momentous year, in our -- achieving in our [ journey ] -- in this journey to bring this next-generation nonvolatile memory market. With thoroughly supported share placement of AUD 50 million and with 65% -- 6.5% -- I'm sorry, [indiscernible], 65% will be better, bringing on the last 5-day [indiscernible]. During the past year, the company secured its first licensing revenues of AUD 1 million commercial agreement with a Tier-1 foundry, DB HiTek and proved that our embedded [ ReRAM ] can function in higher temperature and then use [indiscernible], which is critically important to very important markets like automotives and industrial. Our recent fundraising reflects a strong support from institutional investors, while Weebit already had an unabated cash balance, we will not ignore the institutional investors wanting to invest in Weebit and willing to do so at a premium. The placement provides the company with resources to accelerate our commercialization activities as well as our technology development and provide multi-capital for doing these activities. I would like to apologize to our loyal shareholders that we did not manage to follow this raise this time with a share purchase plan or entitlement offer as we always did. ASX regulation made it impossible this time due to the strong placement price. The team's commercial and technical progress over the past 12 months has validated Weebit as one of just 3 known companies with 25 ReRAM on technologies across the globe, as the only independent provider of a qualified ReRAM. According to latest research, [indiscernible], ReRAM stand to represent more than half of the emerging nonvolatile memory market in terms of volume by 2029. There is a large opportunity for its ReRAM technology in efficiency, including [indiscernible] management, microcontrollers, automotive and beyond, and we probably talked about some potential opportunities created by artificial intelligence. Semiconductor companies are looking for more advanced technologies as the state of the global industry is stronger. Semiconductors on everywhere and will continue to expand to every aspect of our life in the short, medium and long term. 2030, the semiconductor market, as a whole, is expected to reach USD 1 trillion in value. According to McKinsey, [indiscernible] will be looking for the advanced [ AP ] solutions for the clients, providing a growing global opportunity today. Despite really significant progress, full year '24 has had these challenges. Factors beyond the control such as missing [indiscernible] foundry offering can delay accessing agreements, which other companies [ at this time ]. While complex technical evaluations and negotiations with more than a dozen leading foundries and IDMs have taken longer than expected to finding us. These short-term challenges have not dampened our confidential outlook, and we continue to focus on positive agreements and targeting the interesting deals in the calendar year 2024. And as I mentioned earlier, we set up the performance targets, hurdles, for our CEO, remuneration in equity. Investment analysts are taking note on this rise in demand for cutting edge semiconductor technologies as they are recognized by many population. It's the only independent provider of qualified ware. Coby will give more details to why it is so important [indiscernible]. This can be seen by a research initiation of Weebit over the past year by Unified Capital Partners and [indiscernible]. As Weebit grows, it is ensuring that its governance practices remain robust in the best interest of all its shareholders. During this year, Weebit further improved its governance by updating the CEO agreement, tightening its governance and remuneration procedures, streamlining operation procedures and restructured Board committees to exclude executive. An example of implementing these practices was the transition of Dr. Yoav Nissan-Cohen from an Executive Director to a Non-Executive Director, a step towards a more independent Board. Mr. Nissan-Cohen have been instrumental in guiding the company's technical team in its early days, and we'll continue to benefit from our experience in his non-executive role. Another thing that we did was we also added, a little bit more than a year ago, Naomi Simson as our first female Director and there's no mentioning how many times we are looking into increasing the amount of representation of our female in our Board of Directors company going forward. The team at Weebit has brought the company to where it is today and help create a great, bright and important future. I thank them for their dedication and bring our realm of technologies to play. I would like also to acknowledge the ongoing support of Weebit's shareholders, and I believe, from there, that the company's real technology is the next NVM to replace Flash and other forms of memory we are able to currently use. I'm looking forward to this year ahead and bringing Weebit to its next phase of commercialization and shaping it into a leading provider of RAM worldwide. Thank you very much. So now moving to the more standard procedure, right?

We'll just pass the microphone.

Microphone is off.

Yes. Turn it off, we're not going to use it.

Turn it off.

Yes.

I think everyone's [indiscernible]. So we don't need the microphone right now?

No, you're going to speak without it. Everyone on the line...

Okay, what the lady says, that's what we'll do. Now there's always the dilemma when the ways lady tells me to turn right and my wife on the right of me tells me to turn left, what do I do. There's some seniority among the ladies. Anyway, the first item of business is to receive and consider the company's annual report, including the directors report and auditors report for the year ended 30th of June 2024. A copy of the 2024 annual report was made available to shareholders on 24th of October 2024. There is no formal resolution to put to this meeting in relation to the adoption of the 2024 annual report. I will leave to questions later on after Coby finishes his presentation. I believe that some of the potential questions may be answered by Coby. He may open up new questions for you to ask, so I'm going to defer the questions after Coby's presentation. Okay, I will start -- I want to stick to -- I'll go for the whole thing. Do I need microphone now? I could stay intact? As we move towards the formal item of business, I will now address some procedural matters for this meeting. Voting today will be conducted by way of a poll on all items of business. Instructions on how to vote through the Computershare platform are now displayed on the screen. In order to provide everyone with the opportunity to vote and in case anyone cannot stay for the whole meeting, the poll is now open. And you can vote for all resolutions. I will give you the warning before I move to close voting. For those voting holders physically in the room today, you would have -- you have received a voting card upon registration. Please complete on the reverse of the voting card. Should you require assistance to do this, we have Computershare staff available to assist. At the conclusion of the meeting, or if you choose to leave the meeting sooner, please place your completed voting cards in one of the ballot boxes that are located by the exit there. We now come to the formal items of business for the meeting. I will introduce each item of business separately and then respond to questions for that item. For each item of business, the number of proxy and direct votes received prior to the meeting will be shown on the screen in this room in front of you and displayed via the online platforms. I confirm that -- I propose to hold those proxies left to my discretion as the chair in favor of all resolutions. Resolution #1, related to the adoption of the remuneration report for the year ended 30th of June 2024 as set out by the notice of meeting and displayed on the screen. Are there any questions or comments online or on the phone?

There are -- Mr. Chair, a question from Mr. Stephen Mayne, saying, "I don't understand why you can't offer your retail shareholders an SPP for any price."

Say it again, sorry.

It's a question around why you couldn't offer an SPP, share purchase plan to shareholders with the placement.

Coby, would you want to answer this one?

It's not related to this. I'll address that when I give my presentation.

Okay. I request this stage, questions only related to the specific. Any other questions or comment?

No.

Mr. Chairman, there's no phone question on this item.

Okay. If there are no further questions online on the phone. Are there any questions from those in the room? If there are no questions in the room, I will now table the outcome proxy voting received prior to the meeting as shown on the screen. Okay. We'll move to the next one. Resolution 2 relates to the re-election of Dr. Yoav Nissan-Cohen as a director of the company as set out in the notice of meeting and displayed on the screen. Are there any questions or comments online or on the call.

Mr. Chairman, there's no phone question on this item.

Mr. Chair, questions just come through. "Could Dr. Nissan-Cohen comment on how it is working out at the Board level being listed on the ASX? And being based in Israel, are we having many or any Board meetings in Australia? Are the logistics complicated?

Well, we live in the world -- we are an international company by nature. Our business is global, not in Australia. It's all over the world from North America to New York to Asia. A big portion of our team is residing in Israel. We are holding, other than 1 yearly face-to-face meeting, usually on May, we make the meeting online using video conferencing. The whole world is working that way. There's nothing unique, nothing significant. And we work extremely effectively using these capabilities. Video conferencing is wonderful. I used to work in an American company from Israel and we use phone. Trust me, videoconferencing is wonderful and it's very well used. And Dr. Yoav Nissan-Cohen is not the only one who resides in Israel. I'm personally in Israel as well. Coby is in Israel. We have another director, which is in the next world who resides is in the U.S., and we continue to be a global company trying to get the talents that we could get from anywhere they are. Any questions in - coming from this room? As there are no questions in the room, I will now table the outcome of the proxy voting received prior to the meeting as shown on the screen. A switch to resolution #3. Resolution 3 relates to the reelection of Dr. Atiq Raza as a Director of the company as set out in the notice of meeting and displayed on the screen. Are there any questions or comments on line or on the phone?

Mr. Chairman, there's no phone question on this item.

As there are no questions online or on the phone, are there any questions for those in the room? As there are no questions in the room, I will now table the outcome of the proxy voting received prior to the meeting as shown on the screen. I switch to resolution 4. Resolution 4 relates to the approval of issue of performance rights to Executive Director and CEO of the company, Mr. Jacob Hanoch, as set in the notice of meeting and displayed on the screen. Are there any questions or comments online or on the phone?

Mr. Chairman, there's no phone question on this item.

If there are no further questions online or on the phone. Are there any questions from those in the room? There's no questions in the room. I will now table the outcome of the proxy voting received prior to the meeting as shown on the screen. I'll switch to resolution 5. Resolution 5 relates to the pre-approval -- to the reapproval of employee investment option plan as set out in the notice of meeting and displayed on the screen. Are there any questions or comments online or on the phone?

Mr. Chairman, there's no phone questions on the phone.

If there are no questions online or on the phone, are there any questions from those in the room? As there are no questions in the room, I will now table the outcomes of the proxy voting this year prior to the meeting as shown on the screen. Resolution 6 relates to the reinsertion of partial takeover -- it's a harder English for me. How do you pronounce it?

Plebiscites.

Plebiscites, okay, provision in the constitution as set out by the notice of meeting and displayed on the screen. Are there any questions or comments online or on the phone?

There is a question, Mr. Chair online from Mr. Stephen Mayne. The question is, "I don't understand what is wrong with partial takeovers. Which law firm told us to do this, give partial takeovers as a chance?"

Coby, are you able to answer this one?

Well, our law firm is King & Wood Mallesons and they basically recommended this.

And it's a Corporations Act requirement that every 3 years, it needs to be reapproved in order to take -- to -- for the company to be able to use it.

So the research is rolling it forward, not starting a whole thing again, just rewriting.

Correct. Correct. Yes.

Or they create one.

And I hope that was heard on -- whoever asked, that they hear it.

That was online.

Oh, okay. Okay. Okay.

Are there more questions...

Mr. Chairman, there are no more questions on the phone.

Okay. Since there are no further questions online or the phone, are there any questions from those in the room? Since there are no questions in the room, I will now table the outcome of the proxy voting received prior to the meeting as shown on the screen. I remind those shareholders that wish to vote today who have not already done so to please complete their voting in accordance with the instructions provided in the beginning of the meeting because then on, we'll be closing soon. I'm going to now move the baton to Coby to make sure that we'll have a...

Mr. Chair, there are some other questions that came through related to some of the resolutions after you moved on.

Okay.

Are you happy to take those then?

Okay. So is there any questions related to the resolution, I'll be more than happy to have them right now or move on.

Okay. Question in regards to resolution 5 from Mr. Stephen Mayne. "There were 15%-plus protest votes against [ 2 ] directors. Do we know which shareholders are giving us brief today and why have the protests extended to other resolutions?

I don't think I have any data on who voted how, so I don't really understand why they voted against these 2 people, probably the top in their profession, are well known in the industry. One of them is -- worked for the inventor of Flash and was managing one of the largest foundries in the world, Dr. Yoav Nissan-Cohen, and Dr. [indiscernible] is an inventor on his own. He ran a company that was acquired by MD and MD is now the second to NVIDIA in supplying AI and [indiscernible] chips, who was the President, the Chief Operating Officer of this company. After that, he was running a lot of start-ups, made multiple exits and he's well experienced in both large and small companies and a lot of experience in being a director on multiple public and of public [indiscernible]. So I do believe there are very sure candidate. Any other questions?

There's another one relating to resolution 1, adoption of the remuneration report, again from Mr. Stephen Mayne. "Did any proxy advisers produce a report ahead of today's AGM? And if so, did any recommend against this remuneration report item or any other items?" And then there's a comment saying it is better practice to disclose the proxies to the ASX along with the formal addresses. So I don't have to ask if there have been any material protest voted against today's resolutions.

Well, I don't know of any protest and the proxy advisers recommendations are not a public domain. They have been given to their customers for their proposals, so I'll refer them -- if you want to ask what they proposed, you could ask each of the proxy advisers directly. Are there any more questions?

Not related to the resolution.

Any question related to the resolution? If not, I'll move to Coby presenting, and then we'll have much more general questions, only related to the resolutions and with it, in general.

You can actually stay there because I think the first slides are going to be ones that you present. So thanks, everyone, for coming.

Is there the slide for me to present?

No, this one I will present. But I think, first of all, since I was here...

In here because...

They need to see me, yes.

Your face is [ larger ] than mine so they better see you.

Okay. I'm just saying that I was basically here a month ago and most of these slides are slides that you saw anyway. So I'm going to skim through some of them. I think we have a great opportunity that Dadi is here, so he can give his view of the industry, the state of the semiconductor industry and so on. So the first slides that we have actually refer more to the global semiconductor industry and where we stand with it and let you present, I guess, the short -- the 3 slides here.

No, I could talk for a long time about semiconductors. I'm in this business for 45 years now. When I started semiconductors, people told me in the University that I'm an idiot, that I focus on semiconductors because nothing good will happen out of it. Sometimes I make good decisions for the wrong reasons. But this wasn't one. I never anticipated how grand and big and important to the world in general, the economy, in particular, in my wildest stream when I joined Intel, who itself was a company with less than $1 billion revenue when I joined Intel. As you see, it's kind of interesting. The world lives and die on semiconductors. You see here, companies like Microsoft and Apple and Alphabet and Amazon and Meta, that you say what they have to do with semiconductors. First 3 years, a lot of semiconductors in whatever shape of home in their data centers. All of these companies have their own semiconductors, silicon chips development teams. They develop their own devices pretty dominant in microprocessors, so that's a huge deal. Why they do that? Because the importance of a Microsoft or a Meta or an Apple of how good their product is, whether it is a phone or a search or an AI computation, they want to control as much as they can, so develop their own device. Now 2 years ago, I would have mentioned NVIDIA, was preferred, would have not on who this company is. People that used to do gaming and whatever knew how to appreciate the graphics solution that gaming -- gamers love. There was an opportunity and became the largest, probably the highest valued or the second valued company in the world, I think only north of $2 trillion just in the past few years, initially due to computing cryptocurrency. And nowadays, 80-plus percent of AI computation done on NVIDIA GPUs. That's how big it is. And it's going to grow even bigger. TSMC is the largest manufacturer that manufacture all these products or all these -- both of these products. And Broadcom is also a well-known semiconductor company and there are plenty of others. So everyone, including anyone in the room, I think not too many people in the room, either Coby and myself are developing semiconductors, but everybody is using and I bet you'll be amazed how many semiconductor chips you have in your pockets as we speak, a lot. And when you get to your car, you have several hundreds more around you and every light in a corner in every machine that you wipe, any vending machine you buy have a lot of semiconductors. That's how pervasive it is. We don't even know and think about this one. This creates a huge amount of opportunities for all the companies. And this industry is known for the extremely fast development and improvements. I always like to play with numbers. So when I joined Intel, the largest, most -- high-performance microprocessor was the 8086, some people may remember. The first PC was working using this microprocessor. It has 80,000 components, core transistors into it. Could people guess how many transistors are -- was in an NVIDIA latest chip, their latest GPU? Give a number. Be wild.

1 million.

1 million. Sorry?

13 billion.

Okay. North of 100 billion. And there's another company doing something very bizarre, but they have a few trillions of transistors, but put this one on the side. So this industry improved the technology in less than 50 years by more than 6 orders of magnitude. There is nothing in the world on anything that have even in order of magnitude, even in a much longer period. Cars don't go faster and they are not efficient, even 10x than the first car in the late 19th century, and I could go on and on, on this example. It's quite unique. How does that happen? On anything that does a semiconductor, every year, every 3 years, there's a huge technological development that just feed the ability to do this miracle of scrapping million times more devices into the same size of chip that's about that size. There's a lot of technology. It has to do with all kinds of things, all kind of materials, all kind of chemistry and physics and other crazy stuff and they look for new technologies. One new technology they have probably, we believe, as the time is resistive memory, the ReRAM, that, we believe, brings a lot of capabilities into this world and allows people to build even more sophisticated -- Coby will talk a little bit more. I would like to make an example of this crazy stuff. This memory has a resilience to radiation. You may say who cares. Well, when you're flying things to the space and the space is now -- requires a lot of technology, there's a lot of radiation, alpha particles. They change -- every particle that hits the memory chip changes the data in the memory. You don't want to have that. So people put all kind of cases and stuff onto this one. Our ReRAM is, by far, more resilient to this kind of radiation than anything else on the current memories. We talk about speed, we talk about power, we talk about reduction of cost in manufacturing, which is very important for this business. So I think we are talking about potential of great opportunities on an industry that is doing crazy stuff, and we'll continue to do -- and everybody is trying to do more capable computing, more capable memory, more capable communication devices, just to do all -- and all of this, [ more ] of the things that we all do. And we get so get used to it and don't even think about that. But I remember going to the grocery store just 10 years ago. My kids don't go to the grocery store. They put it, everything online. How many people use ChatGPT or other stuff? There are some of you, I suggest you do that more. It's huge computation. Each time you type a prompt into ChatGPT or Gemini, there's a huge amount of activity that is happening on the device itself and on the cloud. And you want to get more complicated answers -- answered. People talk about servicing and all kinds of stuff. It -- all that creates in most kind of opportunities, people bringing a new technology on time, at cost and the right thing to do. So now we have our capable CEO explain as how going to do this year.

Actually, can you switch to the next -- we have 2 more slides that maybe you want to comment on before -- I'm not going to let you off the hook so fast...

Okay. Okay. It's a global industry. You look where the fabs -- fabrication material. This is where people produce these part. Can someone guess the top end semiconductor -- power generative cost to build it? Do you want me to give the number? Meanwhile...

We're not -- billions of dollars.

Okay. But TSMC now, their next production fab is going to be $45 billion, so not too many people have enough money in the pocket to do that. It's not just out of the blue, the U.S. government decided to the CHIPS Act trying to help companies with tens of billions of dollars to go build factories back in the U.S. to regain the leadership that they lost to Taiwan. And the cost, skyrocketing. IPs and all these opportunities are huge. And as you can see, there's no -- there are2 continents with no effects, Australia and Africa. Other than that, and South America, if you represent it with me.

Antarctica.

I'm sorry?

Antarctica.

Antarctica. There's nothing in Antarctica any way, but you're right. So this is a huge industry. And yes, $800 billion of investment...

In just 2 years.

And [ Peter ] say that the U.S. trying to put about close to EUR 100 billion in CHIPS Act, sees it as too little. Now you can see that and say it's too little. That's sounds little to me, but it's a big one. So anything else?

Just 1 more slide or slide.

Okay.

Actually, we added that one. I didn't present it in the past.

Okay. So I think I talked to most of this is in my talk, but we talk about the governance, that you'll be joining, licensing revenue, Coby, you mentioned NST.

Actually, yes. I mentioned Andrew is here, so...

Okay. And so I talked about you are moving from an executive to non-executive director. We talked about the coverage and the raise. So I think I covered in detail. So it's your turn now, Coby. Your turn to say any more.

So yes, I already said thank you to Andrew for the MST report. We don't have -- we have George here from Unify. So the guy that actually stayed up online to the race for us, and Unify also issued a report. So you see we have actually now 2 reports from institutional brokers, and I'm very proud of these reports. As I said, I already presented the slides, and I think most of you already saw them, so I'm not going to bore everyone. I will focus just on 1 key message and when you guide scheme. And I'll talk a little bit about some stuff that came up in this last week. So key points about Weebit and maybe just keeping the -- focusing on the main things. The world has been looking for a replacement for flash for 20 years or more. Flash, by the way, we were talking to Dadi, we never talked about it to you, but flash actually was invented about 50 years ago. It took them about 20 years to reach the point where they were really getting into the market and started to be used pervasively. And then ten years later, people started realizing already that, okay, it's great, it's good, but it's going to be hitting the walls, and we need to find something else. So 20, 25 years ago, people started looking for other technologies. And initially, there was a whole list of them, there was FRAM, there was PCM, there was MRAM, there were all kinds of others. And as time went by, some of them, okay, people understood, that's not going to work. I think about -- when I joined Weebit, the technology that everyone was talking about, every one was sure this thing is taking over was PCM. Intel called this Optane or Micron called it 3D XPoint, it had different names, but everyone -- it was really promising, Intel poured billions and billions and billions of dollars into PCM, it end up being way too expensive to manufacture. People were joking that every chip that Intel sells with PCM and if they wrap with $200 bills around it so that people will take it. Intel realized it's going to go bankrupt with this thing, and they stopped it. And then Micron stopped. Today, there is 1 last company that is still trying to put PCM as to Micron -- micro. And even they -- it's only on a limited range of products and so on. So PCM move the sign. There were 2 left, ReRAM and MRAM. MRAM came out to market first, reached mass production already, I guess, something like 5 years ago roughly and started going now. MRAM, almost any advantage that I will say about ReRAM, MRAM has. It's -- the endurance, the power, the speed, et cetera. It is similar to ReRAM, even actually the endurance has better performance than ReRAM. So people were really excited about. However, everyone already understood from the beginning, it uses rare earth materials. And as time passes, people are more and more sensitive to that. It -- because of that, it requires sub-manufacturing lines and very expensive manufacturing lines, as you can understand in fabs, everything is more expensive. And the manufacturing process itself, because of these materials, because of the way that it works, it requires many, many very thin and delicate layers, and it's not easy to manufacture. And I mentioned in previous presentations an MRAM adds about 40% to the cost of the silicon wafer. That's a lot. Now the flash adds about close to 20%. ReRAM is 5% to 10% at cost. So -- but MRAM was there, ReRAM was not and people were really believing that, that's taking over. What really happened was once these products hit the market, and they were out there in the field, suddenly, everyone woke up and, "Oh my God, we're surrounded by so many magnetic fields all around us." There's everywhere, actually, even the cell phones when they do the wireless charging, it's mechanic fields that are doing it, et cetera, et cetera. And some of the product started failing because the memory was erased or ruined by magnetic fields. And all of a sudden, the consumer companies are there like, "Oh my God, we're not going to touch this thing. Our products need to go everywhere. We don't have control over where people take these products. No way." And by the way, many of the consumer companies normally don't veto technology so strongly. It's pretty rare actually that they come out with a very strong message. We're not going to use this technology, period. And what happened is that -- and this has been in the last 2, 3 years that you start seeing all of these announcements and transition of the industry. Just 1.5 years ago, TSMC published their road map, their non-volatile memory road map. It was all MRAM with a comment on ReRAM on the bag. They had ReRAM in mass production already, but it was still that thing on the SAP. But because of all this input that they got from their customers, in June, I think it was done as a year ago when they published their updated non-volatile memory road map. When you look at that slide, it -- you see all the red lines, which were MRAM, reaching 24 [indiscernible], and it's all gray lines, which are ReRAM, and it's just a sharp transition. Everything is ReRAM and MRAM is now a comment on the bar. So you can see how the world moved from -- in 2022, I think that was the first time Infineon announced -- Infineon is 1 of the biggest suppliers to the automotive market. And they announced all of their future products are going to be ReRAM. That actually triggered a lot of automotive companies to start calling Weebit already. We started getting calls from other guys because, hey, we need to compete with Infineon, and we need to have good technology. It's moved on to TSMC pushing more and announcing, let's say, you have qualified ReRAM also in, I think, in 2 or 3 -- 2 geometries, it was in '23. UMC announced that they have qualified ReRAM and the market started realizing that, hey, ReRAM is here. Now we also, in those years, you remember, we started off with SkyWater. And then last year, we announced DB HiTek, and by the time we get to 2024 this is really that big shift of of TSMC making that transition. Weebit is now already engaged with dozens or, let's say, a dozen big foundries, IDMs and many big product companies. And as we move forward, and going into 2025, this is -- I talked many times about just how difficult it is to bring those first companies on board. And Dadi kind of commented about it. We -- and I think you guys have been commenting to me about it. We were really hoping that already in '24 we would be able to close more deals. We really believe that things would move a little faster, but the human nature of just avoiding risk. We've had companies tell us we know we're going to be using ReRAM, but we're going to really make this last project still work with flash. We want to see someone else be the first one. So we know it's not going to be the most optimal, the best thing, but this is what we know works and we don't want to take any risk, and we'll make it work. And when I joined the industry, in those days that it was -- actually the chips that I was working on were even less than 80,000 transistors. There was the same that nobody got fired for buying IBM, okay? There were better computers, cheaper, whatever, but you buy IBM even if you fail, nobody's going to fire you. If you buy the new thing, you have a risk. And today, it's the same thing. Nobody gets fired for buying flash. You decide to use flash and if you have a problem with your product, okay. But if you start using the Weebit's ReRAM and you fail, there is -- the risk is higher. So that's basically where we're at. We're at this point where everyone knows they need ReRAM. We feel it in the market. We see it. We talk to people, and there is that feeling of ReRAM it's going to be it. It's not going to be PCM. It's not going to be MRAM. We know it's going to be ReRAM, but someone else should make that first step. There's this concept that people use in semiconductors called Silicon Proven, which is basically we want to see millions of products and mass production using this technology to really feel that it's good. Yes, it's qualified. Yes, it's nice. You showed us all of these things, and it's great. But we want to see more. We're slowly pushing this forward. We're overcoming this. At the end of the day, what happens is normally that someone who's #2 or #3 or whatever, and they just want to leap forward and take over. They're looking at them saying, "Well, the chances of actually taking market share of growing with this new technology are greater than this perceived risk that we have and what it's going to do." And that's really where we are today. We're pushing them forward to just see, hey, we've proven to you so many times, we've shown the qualification at SkyWater. We showed you qualification with the Leti chips. Basically Leti chips are on ST Micro wafers. We showed you that we know how to manufacture on 22-nanometer global foundries wafers. We are already now in the process of qualifying at 150 degrees. That's real robustness. 150 degrees means that you're good for practically anything. And here in Australia, I can tell you guys I had a surprise e-mail from a company manufacturing drills for mining, that's what's relevant here, right? And guess what, those drills reach very high temperatures and they want ReRAM. So everyone -- it's out there. And we're seeing the demand we're seeing the need and we will overcome it. So when we talked about what are the plans and I realized that over this past year, we didn't have news and people are starting to doubt. What's happening, and I keep telling them, yes, it's coming. It's coming. We're working and you guys are so sick and tired of me saying that, and I understand everyone. I agree to just tie off my equity compensation next year to these milestones and that you see that I really mean it, we are going to get agreements done. We are going to move forward. And I still stand behind my commitment, it's not just up to me, but I believe that we will manage to close that first deal before the end of this year. I can't have a lot of time. And we're really working hard on finalizing it. And next year, there are going to be other deals, and we're working on it. And it's happening. It's just overcoming that human nature of hesitance. So that's basically the key message. And I've had people ask me to give more examples of the use of ReRAM and why people want ReRAM and what are the first market. So I don't have actually slides on that, but I'm good at waving my hands, right? So I was joking with Eric, people tell me, you want to Coby up, just hold his hands. So -- but a few things just to help you understand where we stand in the sense of different applications. Dadi already mentioned the fact that we are what's called [ red ] hardware, immune to radiation and this definitely is very important for the space application. Not just space airplanes, airplanes get enough radiation as it is already, and we don't want issues with that. So ReRAM is a very good solution for space for what's called LEO, lower orbit and so on. But for Weebit, when we started talking about ReRAM, actually, I think I was surprised, the team may be a little bit less. I was actually surprised how many power management companies suddenly call us. I didn't expect power management to be the first application that really gets excited about it. But guess what, power management today is a big thing. And in our industry, it's really a very hot topic because today, devices don't just connect to the wall by a simple cord. You always have that box on it, okay? And that box is smart power management. That box has a controller that basically doesn't just see the electricity, and it controls it in order to lengthen the battery time, the battery life, it starts off by charging slower and then charges faster and then towards the end, it charges slower, et cetera, et cetera. You want to have smart power management, you need to have a microcontroller. You want to have a microcontroller, you have to have a non-volatile memory. So now these guys, by the way, they don't go down to 22-nanometer, whatever, they're at 90-nanometers, 65-nanometer, 130-nanometer. So they can use flash. But flash is a front-end of line technology. It sits next to the design. Now power management is an analog circuit. And when you put flash next to it, you can -- it interferes. You cannot actually have your optimal power management when you have flash standing next to it. And these guys were going crazy, what they had to do is have a 2-chip solution. They had a chip with a power management and a chip with the MCU, with the microcontroller. Now that's expensive. That requires a board that is bigger for 2 chips. You want that box to be as small as possible, right? And sometimes the box is on the plug itself that you play into the wall, and you don't want it to be something big that covers half the wall and stuff. So ReRAM is an amazing solution for them. ReRAM is a back-end of line solution. It comes on top. It doesn't interfere with the circuit and these guys are really excited about it. And when you see that we are -- the first big deal that we did with the behind tech, it's 130 PCD. You see PCD, you know it's power management. It's kind of -- that's the ideal technology for power management. So that's what basically drove -- I mean the 130 PCD from DB HiTek is good for many applications, not just power management, but you can see that, that was the focus of DB HiTek. If you look at other applications, in many other applications in the automotive field, of course, the fact that we can deal with high temperatures, that's the big deal. And we are engaged now with automotive companies. The medical companies, and there are quite a few that are very interested in ReRAM. Well, let's face it. These guys normally need to deal with 37 degrees, 41 degrees before the person dies of over -- of too high temperatures, they don't need the 150 degrees. What they do need is low power consumption and low leakage, because guess what, a lot of these things are implanted in your body. And they don't want to do operations every 2 years to replace it just because the battery dies. So they want low power consumption. They want devices that they can implant in your body and after 15 years have to replace them or whatever. And so that's where they get excited about ReRAM. You talk about -- let's see, what other applications I can think of. In every application, you have that impact. I mean IoT, again, low power is really important. In general, all of these devices that are out there now that work on batteries and just spread all over the place, you want long battery life, so the low power consumption is important. You have, by the way, logging machines. Today, so many applications, they need -- even your water meter, your electricity meter, your whatever, they just want to log things over time and they need better endure, that's what's important for them, flash doesn't have. Now they wanted to be on a non-volatile memory because even if there is a power outage, they don't want to lose the history of the log that they're keeping of their usage or whatever. So for them, it's very important to have a non-volatile memory. ReRAM has much longer endurance. Actually with them, we're working already on even extending the endurance and there we have projects about making this even better. So that's an application. And then there's -- well, AI, of course, everyone always asks me about AI. Actually, we have a slide about, AI. Can you flip through the slides? I'll stop you when we get there. Keep going. I'll tell you when to stop. Keep going. Let's go. Keep going, it's 1 or 2 slides further, I think. Keep going. Yes, this one. So I already presented it last month, but if anyone missed it and maybe trying to explain it a little bit more. AI, of course today, everyone is excited about it. And I think it's quite obvious that in the next 5, 10 years, this is going to be a technology that just really takes over. AI has 2 main parts. There's the learning part where you teach it to do something and then there's the inference part where you use that knowledge to actually deal with whatever. Best example right now is you teach it to recognize the face of a terrorist, you show it 1 million pictures of that terrorist from different angles. It learns how to recognize it and then you want cameras in the airport to see if that guy is walking by or down the street or whatever. So that's called inference. So training -- the learning or training and then there's the inference. Now of course, the learning part you need to do in huge data centers, you need huge compute power, whatever. But the inference part where in the beginning, everyone thought all of it was going to be done on the big data centers, people realize that in many cases, you're talking about devices like these cameras that are out there that if you want to stream everything that they see to the data center, you need very high bandwidth -- the connection, you need power. I mean it's constantly working, its sending a lot of stuff. It's -- and some of these cameras want to be on batteries or whatever. It just doesn't make any sense. So there's a shift now to do inference at the edge. And if you look at what happens now in this case, they do like to go to 22-nanometer and below. And what solution do they have? Well flash, you can't embed it. So you want to have those AI coefficient somewhere and you want to have that AI engine, which is in an advanced technology, what happens is you -- again, you have a 2-chip solution. You have -- like you see on the left side there, you have the chip that's actually going to be doing the work. When you turn the system on, the coefficients are taken from the flash loaded into the SRAM and then you can work. But okay, it's a 2-chip solution. You have a security issue, by the way, because now people can eavesdrop on that connection. You can't really turn off that camera. I mean, if at a certain point, nobody is walking down the street, you want to turn off that camera, don't waste battery, but an SRAM is volatile. You can't really do that. So you're kind of stuck. Now SRAM, by the way, is also -- the bits of SRAM are big. These are 6 transistors or even 8 transistors. And so the number of coefficients that you can load into it is smaller. Now today, and we have quite a few requests from multiple companies and research institutes that are telling us, we want to move inference to use ReRAM, okay? Now if we replace the SRAM with a ReRAM, we have the non-volatility in the chip. So it's a one-chip solution. We can actually make a smaller device, a smaller board, whatever. We -- so we save cost of 2 chips. And by the way, 1 of the things that I realized not many people understand in the chip, the packaging sometimes costs even more than the chip itself. You save 2 chips, you save the second package, which is quite expensive. Now the ReRAM cells, our technology if -- I don't know, I mentioned it here and there, it's a 1T1R, it's 1 transistor for every resistor that we have. It's a bigger transistor like you know, but it still is not 6 or 8. You can actually have more coefficients on the same piece of silicon, you can run -- you run fast with our ReRAM low counter, and if you want, you turn it off, it's not volatile. So whenever you don't want the device to work, you turn it off. So this is already a big step forward from what they have with flash, and that's what, again, we have it -- the request for this from so many people. And the next step what I talked about, I don't talk about enough, but moving to neuromorphic where people actually use the ReRAM combined with that AI engine, and that's still a few years away, but we're already working with research institutes. So I think that's -- I'm going to stop here because the rest of the stuff you want to know and I'll be repeating things that I said in the past. But I will open this up for questions now.

A little bit for mine, I think [indiscernible] questions. I would like to open the floor to any general question for shareholders to the Board. I remind you the procedures are already outlined about the question before. I know the final question or comment are on the phone that [indiscernible] myself on ending other the presentation, all the resolutions or anything in general, I mean Weebit.

We have some general questions online, but I'll open it to the floor back [indiscernible].

I know the philosophy that you guys started off with us to go with second tier or third tier foundries and we did 1 moved on to Tier 1. Doesn't that -- plus, we still stand that you'll have less pushback or whatever, if we would have stayed with Tier 2. And should we still be looking at those foundries as well.

So what happened is we started off with SkyWater intentionally. Like you said, we wanted to start off with someone small. If we fail, it's a small failure, not a big failure and whatever. We proved ourselves at SkyWater that enabled us to basically go to DB HiTek. DB HiTek, once they saw the qualification of SkyWater, that's what really triggers them to engage. DB HiTek now is triggering the others to move forward. We're at the point now where the technology is really in a good state, showing good results. And I'm feeling confident enough to talk to the big guys as well as smaller guys. We didn't stop talking to the smaller guys. And we are engaged with a lot of foundries. Some of them -- a lot of the big ones, the biggest names and some of them are small and moving forward. So I think the answer is we're strong that we can deal with anyone today and we are talking to a wide range [indiscernible]. Foundries/IDMs by the way, so foundries, but it's always.

Okay. Any other questions? In the room? Do you have anything on the follow-up?

Yes, we have. So we have 4 questions from shareholders online. I'll start from a question from [ Ms. Lari Dorfman ]. The general question about revenue. The company often shares data illustrating the upside potential [indiscernible].

Somewhere needs to shut their microphone.

You have to use [indiscernible]. Turn it off.

Sorry, can you repeat the question?

So this is a general question about future revenue. The company often shares data illustrating the upside potential of ReRAM market in dollar terms and speculates on its growth. While I understand there are limits to what directors can share regarding future performance, there seems to be a way to provide shareholders with an idea of the potential revenue path. Are we talking in millions, tens of millions or more? Do I expect detail on time line, but 1 can speculate for instance, could the company outline scenarios when capturing x percentage of the embedded ReRAM market might translate into an estimated dollar amount. This would offer a more grounded perspective, especially as the directors frequently reference billion-dollar companies, which can in itself be misleading without additional context. Would you consider providing shareholders with such guidance?

So Weebit is still at the stage where things are not stable enough and predictable enough to start giving formal guidance. What I will say is, first of all, you saw that in June, we reported $1 million of revenue. And that's basically from 1 contract roughly or we only have 2 contracts. You can speculate how much comes from which one. Now I would just comment and I won't go into too much detail, but just to give you a feel. In general, revenue of a project is recognized over the time of the project. The DB HiTek project is not over yet. So you can understand that the $1 million is basically partial revenue on that project. I'm not going to say what the total number is and everything, but you can understand its partial revenue and you can start speculating on that. I will also comment something that is very -- you don't need to be a rocket scientist to figure out that the first deals that you do are always the ones where you need to be more flexible, et cetera. When we go -- when we move forward now and we're working with larger companies, when we're working -- now that we have more history, we can be much stronger in the negotiation and we can demand what we actually deserve. And so the deal sizes will definitely be growing as well. And beyond that, I don't think I can talk.

But if you think about the progression, the numbers Coby mentioned, if you look at the past, you try to use a way to see the future when we have more deals that may be some smaller and larger we have here. And the real ramp and the real number comes up when we get royalties when products are out, this is a few years out. Talking about numbers, I think it's going to be misled. We don't know of any public company that talks about anything beyond the quarter on what exactly the revenue. If you take the CEO of NVIDIA, if someone asked him a question 5 years ago, what will be his revenue from AI even if in [indiscernible] and it was said what it is at [indiscernible], it's a new market. It's ability to anticipate. We give you an order of magnitude, you can depict that it's going to grow in a significant manner by a number of more deals. And when the royalty kicks in and they start getting the volume from all these products that Coby talked about, it's going to take some years. This is not going to happen tomorrow or next year. So I think you can understand this is not potentially a small business. I'll give you a reference point. There is a company that do similar or the much lesser technology than we are on the in-memory, Japanese. They do sell a very simple -- not sell. The licensing. Today, this is $100 million a year company and the valuation is about $7 billion. Will we be larger, smaller than the other one? I think it's a good representation of what are the opportunities in this market. I'm not going to give any guidance where we will be and how we'll do this one. But the only thing I'd say, this is a way simpler less capable technology that will be a [indiscernible], but it's a huge market for these kind of things. I leave it as this 1 as an example. There are other people with a much larger businesses on IP. I will not mention that you may try to read on your own way.

But just to finish what that Dadi said, eMemory is a good example because they are exactly in our space. They licensed memory. They don't have products or anything else. They just license memory. Very, very simple memories. But you can see, by the way, from the numbers that Dadi gave, which are U.S. dollars, the multiplier. Our business is practically 100%, I mean there's a 100% margin. You don't have expenses really. So the multipliers are much higher than what people are used to thinking and I think that's something that you should also consider. Other semiconductor IP companies also have these very large multipliers. So not only is the potential -- the revenue potential big, but then the multipliers are very good.

Our next question comes from [ Betty Berkowitz ]. Naomi Simpson has been noticeably absent in shareholder presentations and is not a shareholder. Please comment on her input as a director.

What do you mean absent? She's here.

I'm happy to speak to that if you'd like.

Sure. I will say before she speaks that she is contributing very much in the Board meetings and in the Board discussions and so on, and I'm very happy that she joined us. So I think she's a great contribution to the Board, but I will let you answer.

Naomi, I will just stop you before you start speaking. The camera is zoomed in on the lectern only. So those online can only see you if you speak from there. I do apologize.

You can see that she really is here.

I think 1 of the most important things in a scaling up of an enterprise like this is 1 is to bring experience, secondly is to bring governance, and I know that my fellow directors see that contribution. One of the things that we also must be aware of as directors is true independence. So the only reason I haven't paid any level of investment in this organization is for true independence. So I'm more than happy to consider something that is not material as long as shareholders still maintain that I am independent. It is important for all of you that you have directors who will challenge on your behalf. I represent you in that boardroom and your expectations. It is also why I'm a lay person. I'm not an engineer, I'm not a scientist. I'm the sort of person who just asks the commercial questions. And I'm also, as the company Secretary knows, I'm the 1 who is always on the governance. I must keep you safe, and I must keep this safe, as well as the enterprise. So more than happy to make a contribution as long as shareholders [indiscernible] may not up next year and say I'm no longer independent.

Thank you, which I would like to make the comment that for us, for Dadi and for me, the fact that in Australia, somehow people think that if the directors own equity, then it makes them not independent. I cannot understand the logic. I think it's exactly the opposite. I think the fact that directors have equity means that they have the same interest as the shareholders and that they are following and looking after shareholder interests. But I know that there was a question here about the big institutional -- the proxy advisers and so on, for some very strange reason, in my mind, they consider that as nonindependent and stuff.

Well, we got our legal advice, and I think we are doing well as independence. But I don't have any complaints whatsoever on Naomi contribution and others and being able to challenge us on all kinds of issues, that's exactly why we have the Board, why we have Board members with different expertise coming in and asking questions and making accommodations and making sure that we are challenged. And at the end of the day, we are measured on what -- not on what we said at the beginning is what kind of decision we have made at the end, and this is the way we measure us, and we have the best people. Any other questions? Go ahead.

We have 2 more questions, both from Mr. Steven Maine. The first is, I don't understand why you can't offer your retail shareholders in SPP at any price. Please get on with it early in the new year as we have been diluted as a class to begin to tell investors who took up the recent $50 million placement.

So first of all, I think everyone in this room knows I have a very strong commitment to our retail shareholders who have been with us and helped us. And I don't forget people who help me when it's the more difficult times. So in all of the recent traces I've insisted and I made it a condition for the brokers that we have to do an SPP or an entitlement offer and George is here to tell you guys when we -- when they came and said they want to do the raise, I said, an SPP is a must. And all of the documents and everything was set up to be with an SPP until 7:30 in the morning when the lawyer calls us up and says, "Hey, guys, I'm sorry to tell you, it's against ASX regulation. You cannot do an SPP if the price is above the 30-day VWAP," and we can't do an SPP and I spent an hour with the lawyer looking for entitlement offer, SPP, this trick, that trick, we just couldn't find a way to make this work. So I really am apologizing. I really tried. I continue my commitment to always think about our retail shareholders that have been supporting us through the tough times. And I really regret we just didn't find a way to make it happen and I can't -- I just apologize, I can't do anything beyond that.

Our final question today is also from Mr. Steven Maine. When disclosing the outcome of voting on all resolutions today, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with the scheme of arrangement. This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. Others have already braced -- delays the trail as this was a voluntary disclosure initiative adopted by the [ Lapontis ], ASX, Suncorp, Tabcorp and Computershare during the current AGM season. You've got the data, so why not let the sun shine in?

Go ahead, Alla.

Do you want me to address that?

Go ahead.

So we're in full compliance with the Corporations Act and the ASX listing and we will be releasing the results to the ASX after as we are required to do. And so -- and then -- and we will consider that for next year. But we are complete compliance with the Corporation Acts [indiscernible].

But is this request beyond the compliance?

Yes, he's asking us to release it in this -- before the AGM start.

Before the AGM.

We don't to. But we'll think about it the next AGM. And we will -- just to be clear, the results will be announced, including the proxy results will be announced after we get the poll results.

And by the way, I mean, I do agree and I want to urge everyone because I know the retail holders normally get the notice of meeting and just throw it to the trash. I mean I know that even Dadi and I do that, right?

Not on Weebit, though.

Not on Weebit. Not on Weebit. But in general holdings, I know that's the natural thing. I do try to reach out to some of the holders, the retail holders, the larger ones and ask them to participate. I sometimes ask people to even put it on hot copper, please remind the shareholders to vote. I definitely asked you guys. Next year, I'll be very glad. The more people vote the better.

Okay. Thank you. Are there any further questions?

No further questions.

Okay. There are no further questions.

Are there any phone questions?

Phone questions, okay. Can you phone questions?

There's no phone question.

Okay. As there are no further questions, that concludes the formal items of business to be considered at today's meeting and I declare the poll is now closed. As it will take some time for the poll results to be known, they will be announced to the ASX later today. I thank you for your attendance and declare the meeting closed. Thank you very much.