Weebit Nano Limited

Good afternoon and welcome to the WeBit First Quarter 2026 Investor Update. My name is Danny Younis and I handle investor relations for WeBit. With me today, we have the CEO of WeBit, Kobi Hanock, and for the first time, the VIP of marketing and business development, Eran Rieman. Before I hand over to Kobi, just a reminder, we will be having a Q&A session today. If you have any questions, if you're in the room, just put your hand up, or if you're online, just type them into the Q&A box that you see at the bottom of your screen. We're expecting a lot of questions, but we've provided enough time, I think, to go through most of those questions. We've got roughly an hour, but we can run a little bit over if we need to. I would now like to hand the webinar over to Kobi.

Hi, everyone. So good to be here as always. I guess we came here because of the Semiconductor Australia conference that was yesterday. I think it was a very good conference. It was well attended. I don't know if anyone here, was anyone at the conference? It was really, I think there were roughly 300 people or so. This time, we had a booth there. So you see the sign from Semiconductor Australia up here. We're reusing it kind of. And show the demo. I guess we'll be bringing the demo to the AGM. And we'll be showing it there as well. So we'll be back. I'll be back in a month. And yeah, I guess let me share the screen again with this. So just a few slides, not really much. I think everyone knows a wee bit and knows what's going on. So yeah. We'll just go through the slides like this. So I just thought I'd show you an update. I found this very interesting how just a year ago, the prediction of the size of the semiconductor market was the blue line here. And people were saying, yeah, it's going to hit a trillion US dollars by 2030 or a little bit later and stuff. And now with AI just going wild in just one year, we see analysts already updating their predictions and the size of semiconductor crossing the trillion dollar mark already in 2028 and so on. Again, every time I come to Australia, I have this challenge of trying to explain to people how big this market is, how important it is. You guys know, but like yesterday at the conference, even though a lot of people knew what semiconductors are, we still had to emphasize it. And of course, we've with other institutions and other people that we meet here. So I think this really shows you what's going on. It's crazy the level of investments in this market. I always repeat it because the numbers are just mind-boggling. Every time you see it, more investments and more strategic deals. Intel now, on the one hand, Intel is struggling. On the other hand, they have a new CEO who's really a magician. He's amazing. I know the guy and he's just capable of doing amazing things. And now he's managing to get investments from the US government, from Nvidia and stuff. And India now is starting to invest a lot. They're setting up foundries in India. In terms... Oh, I'm sorry. So I need to do this. In terms of the rear-end market itself, every once in a while I refer to the old slides and it's interesting to see how year after year the numbers evolve. I think that the interesting thing here is to see they're talking about rear-end being today about 27% of the market. And I think this is already what we've been talking about for a long time. ReRAM is being accepted now as the new standard. And you can see how the ReRAM market share is growing quite a bit, actually more than doubling or just about doubling in just a few years. But also look at the size of the market. It's like... So not only is the market share growing double, but it's 20x the market. So it's actually rear end section is 40x in just four years. And that's a huge growth. That's a huge growth right now. The companies who are addressing this are basically TSMC and WePit. You know, the companies that are commercializing the reram, that actually have customers, that people are buying it, it's TSMC and WePit. UMC has... It has a re-rem that's been qualified, but it's been qualified for years and it's only at 105 degrees, which is really not accepted in the industry as high enough. And to the best of our knowledge, they don't have any customers. Even the owner of the re-rem actually, Nuvoton, is using TSMC. And, you know, there's a new entrant. We all knew that GF is looking for reram. We were trying to be the ones who get in there. You know, their internal R&D has been pushing strongly that they make it happen. And the management gave them a chance. So they announced that they have a reram. I think the good news is you can see that people see reRAM is really needed. They haven't qualified it yet in their announcement, mentioned automotive. I think they still have some way to go. I personally think they made a big mistake because they just don't have the resources to maintain this. At a certain point, it'll have to collapse. That's my personal belief. And so I think both UMC and Global Foundries are definitely high on my potential customer list still. I still believe, you know, TSMC is going to be a challenge even though they are on my customer list. And I believe eventually we can get there. But this is kind of showing you the market. Notice, you know, you can see, by the way, the split between different markets, Analog, MCU, and ASIC. And you can see that the initial users are the analog guys. I think you guys already know, we started talking more and more about analog on Semi. It's basically an analog company. Even with DB Hightech, it's a BCD process, which is mostly for analog companies. And you can see the adoption, it's... No surprise that Webit's first fab customers are analog, but then after that the MCU market starts going up and then after that you have the ASIC and SOC markets going up. This really shows you, by the way, that it's reflecting also what Weebit is doing. The fact that we signed up with analog companies, I think that's part of the thing that Joel has been looking at and saying, okay, we can see the money coming in. I mean, you... You already saw the revenue number for the fiscal year, the $4.4 million. And I guess now we're very happy with the recent announcement of the quarterly that this quarter we got $7.3 million from customers. Now, I think it's important for me because I know some people were really getting excited and, oh, my God, it's already cash positive and look at these numbers and everything. know it's important for me and you know i like to be you know honest with with with things um we're getting paid based on achieving milestones and sometimes you know some quarters have more milestones some quarters have less or or whatever and and the some of the milestones are bigger and bigger payments and some milestones are smaller so i i i want people to understand it's great and we're obviously very proud and very happy of the money that came in Now that's how it's going to keep growing. And, you know, we're going to see record quarters every quarter and, you know, whatever, and extrapolate stuff. We need to keep it in proportion. It's good. I mean, you can obviously see from these numbers that the revenue numbers, I guess, for this year are going to also grow somewhat, you know, and we're not giving any guidance, of course. But that's, I think this is a good map of what is happening. And, you know, you can see how the YOL numbers are changing and growing. And YOL is finally accepting. YOL is close to STMicro, which is the only PCM provider, actually. And they always, at least in our minds, they kind of tend to grow the PCM market just because of that influence from STMicro. It's the only supplier of PCM. But anyway, that's kind of... Oh, again, I need to click on this thing. So... Recent highlights, you guys know everything here. You know, the ACQ 100, that's already old news for you guys. Record revenue for the fiscal year, then taped out at OnSemi. That was a, you know, you can see OnSemi has a team of, I estimate at least 30 people almost full-time working with us. It's a big team. It's a big effort. They are really focused on pushing this forward as fast as possible. It is strategic for them, and it's great. It's just a great cooperation. You can see with IDMs, it's really great because they really want to get this out, and they want to get their products already moving. So it's really been... a great partnership and this tape out and you know we now have to sit and wait for the wafers and you know we'll see how long that goes um we uh you know obviously we just talked about the record uh quarterly customer payments and and you know obviously that's nice to see there um And by the way, I want to point out, I mean, people are looking also at, oh, this was a positive quarter and stuff. You need to note that there was also the yearly refund payment from the French government that they gave us, though. I just like to be as transparent and as clear as possible on things. And then, you know, you know that we have a target of three fabs and three product companies to sign up this year. I'm very glad that we actually achieved the three product companies already. And that was really nice. You know, we started announcing the first one and then we have two more now that are So there are three products that are already being designed with our re-ram in them, embedded in them. Obviously, again, the design takes time and they'll need to manufacture the prototype wafers and test and see and qualify their products. But the clock starts ticking towards revenues eventually. So, you know, that's kind of the update. I always like to point to why Webit is actually managing to make this progress. What is the difference between Webit and all these other companies that are trying to build re-RAM or work in this non-volatile domain? And I really think it's this combination of, you know, we have... the the company that is uh you know i think we're strong by the way you know the cash position is obviously something that is very important we have 91 million in the bank and that really enables totally focused on let's improve the technology let's get the business let's close these deals i'm not worrying or spending time on how am i going to raise money now and that's very important for us we have money again you start doing the extrapolation in fiscal year 25 uh the spend was about 25 million roughly so you can see we're feeling good about it for several years now and that we can totally be focused on getting the business closing deals and in parallel growing uh improving the technology the people you guys know our board which i'm extremely one of them. But beyond that, the company now is about 50 people already. We've grown. Obviously, we need to start supporting more projects and these things. We do have roughly one third of the R&D is PhDs in physics and chemistry. I mean, we really have a very strong team. You look at the VPs, I think the average experiences over 30 years in this industry, very experienced, very well-known people in the industry worldwide. I'm not talking about just in Israel and even the levels below. I mean, the average age in Weebit is much higher than you see in normal high-tech companies. And it reflects that you need that level of experience. You need that level of know-how of these things. So really, that's very important. And Leti, of course, is supporting us. So I think it's great to have that. Obviously, we have a very good technology. Part of it is all of this R&D that is going in with very smart people. We managed to make the technology work and work. I can tell you we've hit endless obstacles along the way, but what's important is that you have the team that knows how to overcome them and move forward and fix things. so really amazing technology acq 100 and all and and so on and we're providing the solutions now for for the customers uh and and there's actually you know you have on semi and the analog guys and we're working a lot with analog guys there's quite a bit of activity going on now with companies that want hai and want to see uh how we we bring in re-ram there and there's you know, activity around there and all these other things. And then it's really the customers. We have a very good relationship with the customers. Yes, some of them are just still hesitant. There still is that perceived risk. They still haven't seen this in mass production and so on. So, you know, each one at their own pace, but we are pushing forward. We are, you know, we still have to sign two more agreements. We're working hard on this, trying to get them in this year. And, you know, we don't have a lot of time. I remember last year at this time I was sitting and people were saying, you don't have time left. You said you're going to have a deal. You don't have time left. And pushing as hard as we can to get this done uh this year we we are engaged with a lot of companies with a lot of fabs okay i mean it's just fabs i think it's it's definitely more than 10 that we're engaged right now in in discussions in in in evaluations in in all of this uh stuff and and each one of them with their own story why and whatever and and but there is a very good you know we're in a On sending definitely helped, you know, having that deal. And I believe that when we sign another one or two, it's really going to start, I don't want to say opening the floodgates, but it's going to get us moving forward. And the customers, by the way, the product companies, they... a huge advantage we have a huge advantage in the design side people people don't realize you know we talk about the phds and physics and chemistry and stuff but we have an amazing design team which is recognized in the industry uh you know it took to the point where sometimes people who try to develop reram ask us can you guys take our reram bit and do a do the design around it because we don't know how to do that. And, and, you know, so we have an amazing design team, customers realize, and, and these, you know, product companies, obviously our goal is to eventually have enough standard modules that people will just come and use them. And we won't need to do manual work there. I mean, the goal is to have high margins and then not be doing services, but, The customers know that if they need that support, if they need that design service, we can give it to them. And that's a critical thing. And especially the first customers, they always need some more hand-holding and stuff. So we have that team. I strongly believe that when you build the brand name, that with WeBits, you're gonna be successful. That's what really gets the market going. If you look, if anyone checks my history and the different companies that I was in, almost all my life, I've been competing with companies that gave competing technology for free, literally for free. They were big players. Customers would buy these huge packages from them and then they would tag on on top of that for free, the competing product. And I had to go and compete with that. And the only way I could do it was just give good service. The customers knew and I would meet the CEO and I would look him in the eye and I would say with, you know, the companies that I was at, Vericity or whatever, we're going to, I'm telling you, no matter what happens, you have a problem. You call me up, I'm bringing in the cavalry. We're coming in. You will be successful with our product. And, you know, we were selling, Veracity was selling more than 100 million per year when Synopsys gave its competing technology, which was good for free. And we got more than 100 million a year because people value good service. And that's really what we're doing here. I go and I look at the CEOs in the eye and I tell them, with WeBit, our team will make you successful. We are there. We have a very experienced team, and they are there for you. And we will make sure that, you know, your product won't fail because of us. It might fail because of you, but it's not going to fail because of us. And that's a key thing. So that's really, you know, just to give you guys where we are, what the status is. If I'll stop sharing. And we can probably go to Q&A.

Thank you, Kobi. So we will now move to the Q&A part of the session. Once again, for all those online, and there's quite a few of you, if you have any questions, please type them into the Q&A box at the bottom of your screen. I can see they're starting to come through. But I think just to start off with, we might start in the room. Are there any questions from any of the attendees in the room? Hi, Kobi.

Question on next year. We obviously, I mean, you're too early into the commercialisation journey to be giving earnings guidance, as you said. This year, I think it was really helpful for the investor community when you issued those targets around the product customers and the fabs. Is it relevant to have a similar target or goal that the investor community can look at and measure against next year, given we don't have earnings guidance status, if you like, yet? Is that something you've considered?

This guy is on my case saying, what are you going to announce on the AGM? Yeah, the AGM. I mean, during this trip, how many times have you asked me that question? We're thinking about what we can do. Yeah, it's very difficult to actually, I mean, the targets that we set for this year were A, very aggressive and B, I mean, there's a big risk on achieving these kinds of targets. And it's very hard, especially when you start growing, to keep saying how many customers do you expect to have? And I think it's going to be hard for us to talk about number of customers. But, you know, we know you guys need some sort of of targets or, or guideline or whatever. And we're trying to figure out what would be the most meaningful, uh, goal for, for you and, and to, to keep going. So, so we're, we're discussing this and I guess we have a month for the, till the AGM and, and we'll figure out what we want to present there. That's good. Thanks. Yeah. By the way, can you mention the names? I'd like to get to, uh, yeah, David, I know.

Oh, well, Just regarding the deals that you've made with the product companies, can you give me an indication of the scope, what one may entail? Is it just particularly one particular model of chip that they're looking at? And if it is one, how much extra negotiation and whatever that has to go on if they decide to do another one or expand the what's existing.

I think we have you here.

Yeah. Well, I think in the quarterly activity report, we mentioned also management was one of those and then some security related applications and products uh you know these deals they differ from one another it's not the one deal that fits all of them in most cases they get a license to use the technology in a specific product while others would higher products. But I think at this stage, we won't be able to give any specific details about these.

I guess what I can say is right now, they're mostly coming with one product. They want to test the waters, right? I mean, nobody jumps head first to the deep end without knowing enough. So the deals that we have now, I guess, basically are, again, I can't talk about all of them, but in general, let me talk generality a bit. Most of the companies that we talked to were already engaged, obviously, with more product companies. Most of them are basically thinking of one first product. And we have that negotiation. Some of them want some NRE work and stuff. Others are actually willing to use the more standard module. Now, obviously, once they do one product and they feel comfortable, they want to do more. So we look at it as we're opening the door to that customer and now we want to go and expand. So, now once you sign the first license agreement, normally you can just add addendums and it becomes much easier. And that's, again, that as you grow, the overheads start shrinking. Because a lot of things you did already and now you can, so the customers you already have agreements with, you normally just add an addendum and you specify the new product and everything. I mean, if it's a different manufacturing node. There are a lot of parameters, by the way, in these license agreements that you define. And the license fee, to give everyone a feel for this thing, the license fee varies by a million different parameters, by the size of the memory, by the node that they're using. If it's 130 or 65, or if in the future it'll be smaller nodes, it kind of changes. So there are a lot of parameters. It's hard to give a guidance on, okay, this is what it's going to look like. But the key thing is once a company starts working with you normally, they get to know your technology, their designers get to know it, and then they can just start using it more and more and on more products in parallel and you start having a lot of addendums to that licensing process.

In November last year, you indicated that you felt once you had two or three customers that FOMO would sit in. And you've also talked about in the past crossing the chasm. So on those metrics, where do you consider you are now?

So we were just talking about it this morning, you know, we're right now in the crossing the chasm bowling alley. I mean, we're at the point where, you know, DB Hightech helped us, you know, drop the pin of OnSemi. OnSemi definitely now got others moving. I think we're getting closer to that tornado. I think that, you know, I don't know, one, two more agreements, we'll see it going. So it's, we're sensing it, we're sensing the fact that, I mean, we're talking to all of these foundries, IDMs, etc. And People know they need re-rem. I mean, by now, TSMC has it in mass production. They need to compete. Now that Global Foundry's announced it, it got more attention. The market is moving. It's moving at semiconductor pace, but it's definitely moving.

Yeah. Last one from me. I was interested in understanding the difference between the FAM and the IDM. Obviously, with DB Hightech, we know you've got to go through

test qualify process uh the answer is yes the answer is yes because the thing is when you're working with two independent comfort companies there's that trust level that i mean the product company the the issue is how much they trust the fab or the foundry in in this case uh that everything will go well and it will be ready and whatever so you know they they they tend to want to wait until qualification. Now, sometimes, and you can obviously see companies actually end up signing up before qualification because they can already see the qualification happening and stuff, but it still takes time. I mean, there is still, it's two different companies and they need that trust level. The thing in an IDM is it's one company. When it decides to sign up to manufacture, It's because it knows that it wants it for its own products. So you kind of skip that phase of convincing because the only reason why they sign a manufacturing license is because they know they want it for their end products. I mean, otherwise, why would they sign up with you? So in that sense, that doesn't exist and you can parallelize more. Now, where and how and what's happening on SEMI has been very strict with us on don't talk about anything. So we can't go into specific what's happening with on SEMI, but in general, you're absolutely right.

Good question. What's your computer? Sorry, my name is Leon.

Okay. I just, finally, I meet you every time. So I need to know that.

What's your confidence level in achieving or in signing the two remaining IDM FABs and the qualification of the South Korean company DB Hightech?

So, qualification is actually moving.

We had some... Sorry, if I may just add, by 31st... 31st of December, yes, of course.

That I understood very well. high-tech. We had some hiccups on the way. I mean, always expected that you have some issues, but we are continuing. We believe that the qualification will be done by December 31st. Right now, whatever Excuse me, big surprise happens, but in general, we're on that path. With the fabs, we are in advanced stages with one, with others. We're also moving forward. We're... We're really trying to get more done by the end of the year. I guess I can say some might slip into 2026. I can't say the 31st. The problem is it takes two to tango, right? And these guys sometimes drag things. So we believe we can definitely close 2026. One of them we can definitely close, the second one we're really pushing hard. And actually, again, we're engaged with a lot of them. I don't even know sometimes who it will be because we're talking to several. But the goal is really to push as much as we can to have these things done by the end of the year. And we'll see. It's a work in progress.

The equity incentives of the other directors are hanging on you.

My equity incentive, believe me, I'm thinking about that a lot. Believe me, I'm thinking about that a lot, mine and his. You know, we all, our equity is tied to this and we're really pushing as hard as we can to get it done. You know, you can imagine.

We're wishing you the best.

Are there any questions still inside the room? We can revert back to you at the end. Okay, so if you think of any more. We've got quite a few online questions. I'll also try and pull them where possible, Covey. The first one is actually from an email from Stuart that we got. It's in regard to the pipeline. Would you mind talking a bit more about the pipeline as part of your presentation? Specifically, you have mentioned previously potential signings are being held as no one wants to go first. Is that a comment in relation to FABs, IDMs, or product companies? And now that customers are signing, is that helping discussions with others?

So, first of all, human nature is such that we don't like change. And people like to, what they're comfortable in, you know, to stay in their home, in their environment. So, you know, whenever change come, people resist it. And that's true for everyone, right? And in any domain. Specifically in this domain, It's true for the fabs, for the product companies. We had a situation where I can tell you with one of the fabs, I thought we were going to sign a long time ago. And then they were already convinced and wanted to go forward. And then their product customer told them, hey, we're still not comfortable with this new stuff and whatever. And we want to do Flash for another project and stuff. And suddenly the whole thing changed. comes to a screeching halt and they focus on Flash and they come back to us almost a year later. So that's part of the challenge that we have in giving these guidelines and things. You never know how it'll work. Even when the fab is already telling you, we're totally convinced. We want to run with ReRAM. Suddenly their product company tells them, no, no, no, no. We really prefer Flash first. Let's let someone else do that product. We'll do ReRAM the next one. So it happens. But I think, again, and this is also true, the more people you see around you starting to use something, the more at ease you are with using it. And that's what's happening. OnSemi really helped us. I mean, there's before OnSemi and after OnSemi. And after OnSemi, when people see such an important player in the market, that's signing up with this technology, they say, okay, you know, they're talking. They're talking. Now, again, some of them are dragging their feet and saying, oh, until we don't see DB high tech with a product in mass production, we're just not going to move forward. We want to see it in mass production. And there are several like that. Others are saying, okay, we understand that if OnSemi analyzed it and took that, quote, risk, We can feel more at ease and they still do evaluations and they still go through all of this stuff. But we're progressing. These negotiations, by the way, are just they take so long and they're lawyers. I can tell you, let me go back to on semi. If we go back, you know, more than a year ago, I was sure on semi was going to close before September. You know, it was literally ready for foreclosure. And then, you know, suddenly they tell me, oh, the lawyer is busy now. We're doing an M&A. I think they announced some acquisition in November or something like that. Their lawyer just disappeared. And we were so close and the lawyer disappeared. And that's why it ended up closing in December. Now, you ask me, you know, December 31st, it could have been that the lawyer would have been busy two more weeks and we couldn't have closed on semi on time. So it's that kind of thing. It's...

uh it's we're doing our best on on these things to push these forward yeah okay there's a few questions on db high tech uh the two or three investors online have asked about an update on the quarterly you've already answered that so we don't need to answer that again but stuart's got another question in terms of db high tech are there still a lot of fabs idms and or product companies waiting for db qualification that is will that be the damn wall bursting when that's completed It's going to be definitely an important milestone.

There are some companies that are telling us, we just want to see that happen. We just want to see that you actually close that wall. So I don't want to say it'll open the wall, but it's going to be another crack in the wall. I think that the big thing will be, you know, some more major players signing up and we're pushing on that. I mean, you know, that's the big push, but it's definitely going to help us push forward.

All right. There's a few questions on Semi. Can you provide a little bit more detail on the final qualification with on Semi?

I guess we can't really talk. What we can say is we taped out. Okay. Now, this is now being manufactured. Guess where? In Onsemi. Okay. And you can understand that they consider it a high priority. So now I don't control their priorities in the fab. I mean, it takes... many months to manufacture, they can give it higher priority. I don't know what other stuff is running through their fab line right now and where they're putting these wafers relative to products that they manufacture for their customers to actually get revenue. But they're manufacturing them and We'll get them back. Once we get them back, as you know, we start doing all the testing and verifying and then seeing that everything is in a good shape. And hopefully at that point, we can start qualification. The good news is because it's, again, it's the fab that is also the customer and so on. when we want to run more lots if you remember we need to to do qualification on three separate lots that run independently so i mean those kind of things i imagine again i'm not committing to anything but i imagine they will probably give priority to get these lots through so that we can do the qualification and they can get their products out some of the investors are pushing a little harder kb i know you probably can't answer this but uh given on semi was taped out in early october

is there a chance you could be receiving royalties from Onsemi in full year, 2026 fiscal year?

I guess I... Unfortunately, again, you know, they will... You can assume that they'll want to have this in their products and they'll want to push this forward. But their schedules, we know some of them. By the way, we don't know a lot. They keep it secret from us as well. And even what we do know, they made it very clear that it's under NDA and we shouldn't be talking to anyone about it.

Maybe to rephrase it as Warren does here, once qualification is finalized, how soon will you have products ready for sale potentially?

I really try to be as transparent as I can with you guys, but, you know, Onsevi was very clear. Don't talk about these things.

I think maybe we can just say in general, you know, it takes between...

Yeah, from the day they start doing a design of a product, you know, it's the rough schedule in general. Again, talking generalities, it's, I would say, between 18 and 24 or 30 months. It depends on the product and the complexity and whatever. But that's kind of the timescale to get product out to mass production.

Maybe a final one on Semi before we go on to other matters.

current tape out with on semi is that the end design final product that's taped out in order to reduce the time oh no no it's uh it's the test chip you need to remember this is the first ever tape out of of rear end so it's uh it's a test chip that we designed i think i presented it a while back it's it's a it's a complete test it has a processor it has uh sram on it it has you know the a bus and everything i mean it's it's a complete Basically, it's a complete SOC. We did a complete system on a chip, which has our ERAM in it, where you can really load programs in and run them. So it's a real system that is going out, but it is our design for test purposes at this point.

Okay, we'll move on to other topics. So from Chris, Kobe, firstly, congratulations on a great quarter. How are things progressing with automotive companies? Will this be a slow burn in terms of them putting pen to paper?

You can answer that one also, right?

Well, I want to say automotive is definitely one of the key markets and a lot of interest in that domain. In modern vehicles today, you get thousands of chips in there, and they are more advanced than what you might find in other IoT devices. There's the push over there. We feel it very clearly. I think OnSemi is a very good application. OnSemi is all about automotive applications. So I feel very confident with these prospects over there.

I would add just the thing about automotive is human lives depend on it. And that's something you need to remember, the regulation that you have in different countries related to it, the standards that you need to meet. It's not just the ACQ 100 that you need to meet. You know, there's ASIL and there's ISO 26262, and there's a million different qualifications, if you want to call it, that they need to pass and they need to show that, you know, people won't die because of this, right? So it's very, very critical. Automotive projects normally take much longer than an average SOC. And that's something that people need to understand. They will engage with us now and they see the potential. And I mean, a lot of these automotives are actually analog. Remember that graph there, a lot like on semi. So a lot of these automotive guys are analog and they will engage with us now. They can already see the ACQ 100. They can already see the potential. But how long will it take until it's actually mass production? Automotive projects take longer.

Maybe just to add on that, it's also stickier.

Yeah, I mean, once they work with you, you know, the cars, the same model of car, and it's not just the same model of car. The subsystem is used in many future generations of that car. So once you're in, you're in for decades. I mean, those are the type of projects that you sign up and you know royalty is now going to come in, you know, for a long time, you're going to have that royalty stream.

Okay, the next question from Jason is around the security product. Can we get a sense of what a security product means in terms of the use of a Weebit chip?

Well, secured products mean, you know, one of the advantages that RERAM has is the security. You know, the fact that the NVM is integrated with the main SOC means it's much more difficult to hack the products. You get secured products in, you know, payments, secure payment. You get this in your NFC products, in your smartphone. Also secured products in automotive, right? It's extremely important to make sure that there's no way to hack into your autonomous vehicle or whatever it is. So these are the types of products that we're seeing over there. And the NVM is a critical part there, right? It's one of those.

The NEM also, I mean, reRAM has some unique characteristics about, you know, no two reRAMs are identical. And so people use that, for example, for security keys or things like that. So it's used in many different security applications. But that variability that you have between rear arms and the fact that, you know, no two rear arms are the same is something that a lot of people like and use that in the security space.

Okay, the next question is around the architectural agreement. So is the architectural agreement still alive? And if yes, can you comment on what nodes would be part of the architectural agreement?

So is it alive? Yes. You know, one of those fabs that we were talking to is, you know, again, an architectural agreement is already also much more complex than a regular agreement. And that's one of the things that's causing it to drag forever. But yeah, I never, if you would have asked me in 2023, Do I think I'll be sitting here at the end of 25 and still saying, yes, it's alive and we haven't signed it yet? I would have said, you're crazy. How long will it take? But unfortunately, it's definitely alive. It's definitely alive. And, you know, we are working with those guys. But, you know, once we announce it, I mean, once it's done, we'll announce it. I can't talk about it before then.

Maybe on Global Foundries, there's a question here. Maybe can you provide an update on if the GF chips were qualified?

To the best of our knowledge, I mean, in their announcement, they didn't mention qualification. If it were qualified, I imagine they would want to say that, so they didn't mention it. They also didn't mention the word automotive anywhere in that announcement. So two things that we didn't see in their announcement. Now, they started much later. push this fast through but still it's a lot of work and uh we don't really know beyond that where they stand but uh we're relying on their announcement if I were them and it was and it were qualified I would say it's qualified there I want the customers to do it Krishna's pretty keen to know are you working with any mobile phone product companies You know, we're talking to so many different product companies and there's also those.

Yeah, smartphones, they have, you know, tens of different chips inside from the big SOC that runs the of power management devices that you have there and smart payments and all these things. So I'm sure eventually we'll find ourselves in one of those.

Okay, turning to Skywater, maybe just an update there on the current relationship status.

I think right now, you know, it's pretty obvious they're totally focused on their R&D services and we're a customer there. So, I mean, we definitely were a customer right now of Skywater. The fact that we're qualified there is great because now R&D can actually do a lot of testing there and they are faster and cheaper than Letty. So a lot of things we're actually running through them to save money and to do things faster. working with them. To be honest, right now, you know, they've disappointed me so much that even, you know, they acquired a new big fab in Texas. I don't know what they're doing there. I don't see I don't want to bash whatever, but right now there's no real discussion about that. And by the way, we're talking to such bigger fabs right now. To me, they are lower priority. I'd rather close agreements with some of the big guys than with Skywater anyway.

There's a couple of questions around discrete. The first one is, Do we risk our competition beating us to discrete re-ram while we focus wholly on embedded?

So first of all, we're not focused wholly on embedded. There is work in the background. It is low priority, admittedly, but there is work going on all the time. I mean, just in September, I was at Letty with the R&D team and we were talking about discrete and how we push this forward and looking at the different options and so on. So it's definitely not dead. It's definitely something that we know is important and we want to push forward. I personally believe we, I am not aware of any other company that is working on discrete re-rem right now. So I don't think we're risking someone beating us to it. I haven't seen anything anywhere about a company that's trying to do discrete re-rem right now. So it's something that people would love to have, but it's a big challenge. I think that's, again, going back to Webit's differentiation, I don't, I'm hesitating to say this, but I really can't think of another company in the world right now that has the combination of team, technology, resources, management focus that can actually do discrete reramp. I really can't think of that.

You know, we had the Fujitsu that was doing some rerun for some time.

Yeah, they were trying to do, but that was dead. I don't think anyone's going to bypass us. It's true, it's not high priority right now, but it's still working all the time in the background.

And given it's not high priority, the next question sort of alludes to this. So can you give an indication of a timeline to discrete, and have you yet identified a preferred selector architecture?

I can't give any timeline. It's still a lot of work. It's really a lot of work to do and it's going to require R&D. We are exploring all kinds of, talking about architectures. We're still at the phase of, you know, we're trying one and then we're thinking maybe there's another potential. And so there's different options that we're looking at.

And yeah, so it's still work in progress and it'll take time. Stephen's got an interesting question here. So are there any restrictions on Chinese companies obtaining or manufacturing re-rent?

The US has a blacklist of companies that you can talk to. So those are definitely off of our target list. But beyond that, we don't have a real restriction. I can tell you that I'm just giving preference to anyone who's not Chinese right now because of the risk. I mean, you don't know if a company that you're working with might end up We've already seen situations where companies that we were considering working with that actually kind of ended up in the blacklist. So I'm very cautious. We have so much potential right now in the rest of the world. And China is a huge market and you can't really ignore it. But at the same time, Webit is just entering this huge vacuum. There's an unbelievable vacuum out there that we can fill. And there's no, I mean, why take the risk of trying to work with a company where there might be an issue when you have so many others?

There's a couple of questions from Jason and Serena on EMS. So maybe just to make them generic. Has the EMAS collab progressed? And can you maybe just talk to this talk that they're progressing towards a 16 nanometer form factor, which seems to be beyond Weebit's announced capabilities. Maybe just comment on that.

We worked with EMAS earlier in the year towards this demonstration that we have. It's a beautiful demonstration. I think recently we also uploaded a video that shows this demo. I think it's very nice. It has great potential. They were using a 22 nanometer process node, and they have the option to continue and work with us. We're in discussions, but there's nothing much to actually report at this stage. So we'll see how this progresses.

Okay, we'll go to more market general questions. So anything happening on the AI front?

A lot.

This guy and his team, I think that's the biggest activity.

There's a lot going on on AI. AI is divided into multiple steps. We're seeing a lot of interest in integrating our rerun into an AI SOC, just to get the memory closer to the processing elements and reduce the amount of data movements. And at the same time, we're seeing increased interest also in what's called in-memory compute. This is where the computation is done within the memory environment. element themselves. We're seeing a lot of interest from research institutes. I would say that for the past five, six years, maybe five years ago, this in-memory compute was just a concept that people were talking about. Nowadays, this is in real research, but not just within a universities and research centers, but also large corporations and companies are investing heavily in this domain. I think it's still not ready for production, but we're getting there. We're getting there every year. It's getting closer and closer. I wouldn't put any timeline on this, but it's there. And the interest that we get from customers

And I guess I would just add, Edge AI, I talked about it, I think, in the previous period, excuse me, time that I was here in Australia. ReRAM is really a natural fit for Edge AI, and that's a domain that's really growing rapidly. And the demand there is growing. The challenge is a lot of these guys want to work at 22 and below, and right now we actually don't have that to offer them. but some of them are working in high in larger geometries and we are relevant so uh but in general there are a lot of uh uh calls even from you know from big name companies who say hey we saw you're working with reram you have reram you know uh we we're looking at it for edge ai and what do you think so i mean it's um it's definitely something that a lot of people are looking at

rear end for Edge AI. Speaking of Edge AI, I've got a question here from Jason on Edge AI. So can you maybe just clarify, has this been signed as a product company or in negotiations?

So unfortunately, we gave all the information we could on the product companies in the quarterly. Companies are still trying to be more, I mean, eventually they will be announcing their products. And I think these things will become public. Hopefully, you know, they'll let us start talking about it more. I guess beyond the fact that right now, the three product companies, what we mentioned are USB, I can't really talk about which application. I think for the first one we mentioned they were a security company. The others right now, we need to be really careful with them.

So that's what we can say. Maybe touching on Samsung. So what's Samsung's focus these days regarding NVM? Are they MRAM focused?

So Samsung, I mean, what they have in mass production right now is MRAM. And what they're offering their customers is MRAM. I guess... I think it's also public that they had some re-ram. They had a big re-ram project, which they ended up shutting down because they couldn't get it off working. Beyond that, I don't think we can comment.

And Michael's got a technical question here. How are you going in terms of reducing... the process node to 10 nanometers.

Well, I said we're talking to a lot of fabs. And obviously, that's the direction we want to go. And we want to get fabs that work in the smaller nodes. So eventually, we'll be there. It's a matter of pushing. And you can see, again, that's part of that, quote, perceived risk thing that, in the beginning, for the companies, the smaller the geometry, the higher the perceived risk. And so that's why you've seen that we started with 130, now we're at 65, and then we're trying to push down, and we'll be getting there.

Okay, the next question is around your technology. So once it's in a customer product, will the performance results help sell that Weebit technology to other possible customers? Definitely.

I mean, the Weebit, their ERAM has big advantages over Flash. people will see it and people will see the competitive advantage of the products that have re-ram in them i'm sure that that will help influence yeah and when are you looking at reducing to smaller nodes well as soon as these guys will sign that damn paper but you're confident there's no technical barrier to a 1x geometry no no At the 1x, definitely not. Below that, there's more work to be done. But at the 1x, we've already done quite a few. I mean, I'll even say we have PDKs. We did simulations. We've seen that there's no issue.

Is RearAim a good fit with the new generations of humanoid robots under development? Definitely. Definitely, yes.

for multiple functions.

Yeah, for exactly. I'm thinking for a lot of different functions there. We talked about AI, which is part of it. It's really for many different functions.

AI, it's the motor control that you need to run, which is, it's power management. It's, you know, many different functions within this.

Maybe a question on one of your competitors. What are the key differentiators between Weebits or ERAM and TSMCs?

From what we know, and again, we don't know enough about TSMC. I would say, first of all, it's the company focus. It's not the actual technology. I don't think we can really comment on speed or performance or power or whatever. We don't know enough, and I don't want to go into that. But I think the real difference is the company focus. WeBit has the design team. that is there to help. And we know because we had customers who actually called us up and said, we talked to TSMC. We wanted to use their rear end, but we wanted them to do some modifications for us and they wouldn't do it. They said, you know, go to hell basically. You know, TSMC is a fab. They want to manufacture. They don't want to start dealing with, you know, modifying. I mean, this whole rear end is just an enabler for them to sell wafers. So they have several versions. You know, it's a good rear end. Let's, First of all, let's make it clear, TSMC is TSMC, and they have a good reramp, and people are using it, and I'm not going to say it's anything bad about their reramp, but the advantage is that we have everything around, and we will work with the customers to give them what they need to tailor it to give them a better solution. I believe that the investment that we're making in R&D, and we are working on new concepts in manufacturing, on improving the whole manufacturing process. I don't know how much TSMC is continually investing in it. You know, again, it's not their core competence. It's not something that they plan to make a lot of money off of. Right now they are making a lot of money off of it because they're the only ones who have re-ram, so they put this big margin on there. We tell people re-ram doesn't add more than 7-8% to the cost of a silicon wafer. They say, but TSMC is asking for 40% because they can. But in reality, this isn't what they're going to make money off of. And at a certain point, there's a limit to how much they'll invest in this R&D. So I believe that over the years, we will continually improve the technology. At a certain point, and it's not going to be immediate, but at a certain point, I believe we have a good chance of having a better re-rem that some customers will want and will push TSMC to license the re-rem from us.

We're down to the last four questions online and then I'll throw back to the room for any final questions. Very general questions. So are we going to see any takeover offers in the near future? I guess everyone knows what my answer to that. cap raises in the future?

With 91 million in the bank, I am focused on getting the deals done.

I really don't think I need to think of cap raises. There's maybe more of a comment here rather than a question in terms of maybe getting other directors like Atik to join these webinars maybe once a year. It's good having Eran on, maybe introducing other directors as well maybe.

Honestly, I never thought, I mean, we have Davi coming every year to the AGM and he's there. You know, the others are non-executive, so I normally don't think about getting them involved. But that's, let me think about.

A couple more coming at the last minute. Outside of the foundry deals and partnerships you've already talked about, Is there any other area, potentially a new market or application that you think could quietly become a big growth driver for Weebit over the next few years? Something that's not really on the radar at the moment?

Yeah, we look around. I mean, that's this guy's job, right? Business development is his title, right? rerun can be used in different places and then you know every once in a while there are ideas of complementary things um you know i mean the this is the type of thing that i think any company is always looking at at what's happening in the market happening around and um you know either i mean when things happen they happen right i think one interesting market that we're seeing uh then we get a lot of questions about data centers you know ai but data center side right so

We're focused on edge AI and we're doing a lot of stuff there and I hope soon we'll be able to talk more. But on the data center front, what we're seeing is that not necessarily the NVIDIA chips, which run at much more The power management, which is a critical issue when it comes to data centers, right? The amount of power and the air conditioning that runs in there and all that. So power management is critical. And one of the markets, for example, is data centers, power management for data centers. So this is definitely an interesting way into those data centers for resisting power.

Okay, we've probably only got time for two more questions, maybe one from the room. All right. Okay, so the third last question. From your perspective, how should shareholders best interpret the information that you share? And, you know, what are some of those indicators that you can suggest that investors should focus on to understand your future momentum?

I think... Yeah, honestly, it's hard to talk about yourself and whatever, but I think WeBit is a very conservative company, which is just focused on doing the job. We basically try, I think you can see, first of all, I try to be as transparent as I can. Second, you can see the targets and how we progress from year to year and slowly. It's actually in semiconductor terms, we're really moving fast. So I know it looks like forever, but we are moving and it's really steady as she goes, right? So I think that more than anything, I hope the shareholders are looking at at how things evolved and are seeing that, you know, we went, I remember when I joined the company, we had just the first bit cell and then the array, and then we got to the full chip and we, we qualified and we went to Skywater and we went to DBH and we got to OnSemi and, and, So I hope you can see that trajectory. Now you can also see the cash. I mean, fiscal year 24 was $1 million revenue. Fiscal 25 was 4.4. Now, just this quarter, you can see already how much cash is coming in. So you can start understanding where it's heading. I really just hope that people see that we're serious. We're doing the work. I don't like to, you know, to, to blow things out of proportion. I don't like to go, you know, when things don't work well, we don't go into, Oh my God, you know, everything's falling apart. We're it's, it's very, a very experienced team. You know, we've, we've been through endless hurdles in our lives and, and at we, you uh and and we just we hit the hurdle okay what do we need to do we fix it we move on and we continue to to progress so i i just think people need to look at that and and see how how every quarter things advance this is a good one to finish up from the online questions at least 10 years but with your crystal ball where do you see the company in terms of scale or size versus ups um you know i'm not giving any guidance because this uh in hebrew we say prophecy was given to the fools i mean that's what's written in the bible prophecy was given to the fools so uh and i don't consider myself such a so uh but uh i mean obviously i believe we will be growing my goal i can say what my goal is my goal is to be the leader, the number one re-ram company. And I think in 10 years, it's going to be not just re-ram. We will expand beyond re-ram. There is a lot more out there. I mean, who knows? Again, people asked about M&A. Things happen when they happen and when you have opportunities. But over 10 years, who knows? You can assume that there might be some opportunities. The whole market AI, we don't have a clue where it's going to head. ReRAM is a natural solution for AI. So I believe you're going to see a big AI market and you're going to see WeBit as a big player there. That's, again, my belief and my goal, what I would like to do. No guidance or any commitments or whatever.

Do we have a final question in the room or two?

Just regarding the test chip that's been manufactured and in some cases qualified, is there any commercial viability to sell that as it is since it's already gone through the full process?

It's a very simple system monitor. I mean, some people might want to actually use it.

Yes, there is a possibility, I think. For certain applications, you know, some IoT applications, it could be a good fit. But, you know, I definitely believe that for a true product, you would need at least to add some kind of interfaces and, you know, real-world interfaces into the chip.

for people to test out.

Yes, it's very generic and versatile. I agree. But for commercial purposes, they'll probably want to tag on somewhere. And, you know, to be honest, I haven't really thought much about it. But if a customer comes and say, hey, your test chip is really interesting. I just want to tag on some things. You know, we have no problem to license the full test chip.

Yeah. So a quick question about patents. Could you tell me or tell us roughly how many patents competitors like TSMC?

So we're not following up on specific patents from competitors. Just numbers. Yeah, so I think in the last quarter we announced six new patent applications were made and we're at more than 90 patents for us. With regards to competition, I don't have an answer.

In the industry, people try to avoid researching the patents of others because you can only get into trouble. I guess it was less interesting for us. As long as we know that, to the best of our knowledge, we're not infringing on anything and that's what we care about.

That's what's important. Unfortunately, we've run out of time. So that concludes the Q&A session. I'll now hand back to Kobe for any closing remarks.

I guess, first of all, I'm always glad to meet you guys and the people that are out there. As I said before, Weebit is moving forward, progressing, making progress. You can see it. We definitely plan to close more deals this year. That's the big focus right now. Next year to already get into that tornado and really get this thing moving. We have an amazing team. And we have amazing shareholders that stick with us in the ups and downs and all. And yeah, I mean, the numbers, again, what happened this quarter, I'm repeating, don't expect every quarter to be like this and going up, but it's good. And we are going to continue to get money from customers and the numbers will grow over time. So it's good and we're moving forward.

okay thank you kobe thank you iran thank you to all the people who attended in person and thank you to all those online who can now disconnect thank you thank you very much thank you