Earnings call transcript: Weebit Nano Q4 2025 focuses on ReRAM growth

Weebit Nano Ltd (WBT) recently held its Q4 2025 earnings call, highlighting its continued focus on embedded ReRAM technology and strategic market positioning. The company did not disclose its earnings per share (EPS) or revenue results, but provided insights into its operational and strategic advancements. The stock saw a decline of 5.79% in its last trading session, closing at $2.42. According to InvestingPro data, the company maintains robust financial health with a current ratio of 18.02, indicating strong liquidity position. InvestingPro analysis reveals 10+ additional key insights about WBT’s financial position and market outlook.

Key Takeaways

• Weebit Nano is strengthening its position as a leader in the embedded ReRAM space.
• The company has signed its first design license agreement with a US security company.
• Significant interest is noted from AI and automotive sectors.
• Weebit Nano aims to sign three fabs and three product companies by the end of 2025.

Company Performance

Weebit Nano continues to generate cash flow from existing agreements and has raised $50 million in funding less than a year ago. The company emphasizes its leadership in the embedded ReRAM market, being one of the three qualified providers alongside TSMC and UMC. With a cautious hiring strategy, Weebit Nano is building robust infrastructure to support multiple fab partnerships. InvestingPro data shows the company holds more cash than debt on its balance sheet, with a negligible debt-to-equity ratio of 0.0, positioning it well for future growth opportunities.

Financial Highlights

• No specific revenue or EPS figures were disclosed in the call.
• The company is currently driven by license fees and NRE payments.
• Revenue details are expected in the upcoming August quarterly report.

Market Reaction

Weebit Nano’s stock price decreased by 5.79% in the latest trading session, closing at $2.42. This movement reflects investor caution amid the lack of disclosed financial results. The stock is trading closer to its 52-week low of $1.38, indicating a potential opportunity or risk depending on future performance. InvestingPro analysis suggests the stock may be undervalued based on its Fair Value calculations, with analyst targets ranging from $5.19 to $6.15, representing significant potential upside. Get access to detailed valuation analysis and 10+ additional ProTips with an InvestingPro subscription.

Outlook & Guidance

Weebit Nano projects an EPS of -0.13 USD for FY2025 and -0.12 USD for FY2026, with revenue forecasts of 2.58 USD and 6.19 USD for the respective years. The company anticipates exceeding its targets of signing three fabs and three product companies by 2025 and expects a significant increase in adoption in the coming years. Recent financial data from InvestingPro shows impressive revenue growth of 905% in the last twelve months, though analysts note the company is not expected to be profitable this year. Discover comprehensive analysis and growth projections in the exclusive Pro Research Report, available to InvestingPro subscribers.

Executive Commentary

CEO Kobi Hanoch stated, "We are finally seeing the fruits of our hard work," emphasizing the company’s growth and strategic advancements. He also noted, "The tsunami is on its way," indicating expected widespread adoption of their technology. Hanoch highlighted the lengthy qualification process in semiconductors, saying, "In semiconductors, things don’t just happen overnight."

Risks and Challenges

• The qualification process for new technologies remains lengthy, taking 18-24 months.
• The company faces competition from major players like TSMC and UMC.
• Market volatility and investor sentiment could impact stock performance.
• Operational challenges include managing multiple fab partnerships and cautious hiring.

Q&A

During the earnings call, analysts inquired about the specifics of the new product company and the impact of the Middle East conflict. Weebit Nano could not disclose details but assured no operational impact from the conflict. The company noted an increasing number of companies approaching them, indicating growing interest in their technology.

Full transcript - Weebit Nano Ltd (WBT) Q4 2025:

Danny Eunice, Investor Relations, Weebit Nano: Okay. Good afternoon and welcome to the Weebit nano Meet the CEO Investor Briefing. My name is Danny Eunice and I handle Investor Relations for WeBit nano. With me today, I have the CEO of WeBit, Kobe Hanoch. Good morning, Kobe.

Kobi Hanoch, CEO, Weebit Nano: Hey, Danny.

Danny Eunice, Investor Relations, Weebit Nano: Before I hand over to Kobe, just a note that we will be having a q and a session at the end. If you have any questions, please type them into the q and a box on the bottom of your screen. We are expecting a lot of questions to come through, so obviously preference will be given to those questions that are named rather than anonymously. But we’ll try to get to all questions in the one hour we have. And when necessary, I will also pool the questions where there is overlap.

I would now like to hand to hand the webinar over to Kobi. Please go ahead.

Kobi Hanoch, CEO, Weebit Nano: Thanks, Danny. So, we had yet another good quarter of progress. We’re focused on commercializing, as everyone knows, and pushing the deals forward. We have obviously, DB Hi Tech that, we’re moving forward with them. We had, we had some issue when, you know, they were using a different tool and and had requests from customers that caused a little change in plan, but we’re still definitely on track to do the qualification before the end of this year.

So that’s progressing well. We actually are already talking to customers that want to work at d b high-tech, and there’s, there’s interest there. D b high-tech demonstrated a chip with our Rearam in it at the PMIC Summit, at the PMIC Conference in Germany, this quarter and got very good feedback. So overall, I think, things are progressing very nicely, very well with, on the DB high-tech side. With Onsemi, things are moving, well.

Also, you know, we’re moving forward with our technology transfer there. As I said, I believe, in previous times, they’re very, very cooperative and moving, really fast on this, and there’s great cooperation there. So things are progressing nicely on that front. Additional foundries and IDMs. There’s a lot going on in the background, talking, you know, analyzing, etcetera.

We we are committed to get additional deals done this year, and I believe we will get them. So we’re working very hard on that front. We’re also committed to get product companies, the fabs, it’s manufacturing license agreements that we do with them. With product companies, it’s a design license agreement where they can actually put our DRAM into their chip, embed it into their chip and go manufacture. So I’m glad to announce that we have a first design license agreement signed, and we have several in the pipeline now, so this is starting to move forward.

We added it. It’s post quarter end, so it wasn’t in last quarter. It’s actually recent now that we signed that agreement, but we are expecting to sign more. And, following, kind of the industry standard, since, product companies who end up having a lot more than manufacturing, we’ll just be announcing them, in our quarterlies from now on, as we move forward, the new deals that we do. So that’s, that’s more or less it.

It’s it’s really exciting times. I think, you can see also the 4C and the cash reports, and at the end of this quarter, at the end of this month in the yearly report, you’ll be able to see the cash progress, the revenue progress, etcetera. It’s a lot of hard work, but we’re finally seeing the fruits, of this hard work. And, there’s a lot happening and a lot more to do, before the end of this year.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Thank you, Kobi. We will now move to the q and a session. So once again, if you have any questions, please type them into the q and a box on the bottom of your screen. We do have several questions coming through.

We will maybe start with the new announcement about the product company. How would you describe Weebit’s first customer signing mentioned in the quarterly? Are they a big well known name or smaller, and are they linked to Skywater?

Kobi Hanoch, CEO, Weebit Nano: So, it’s not a very big name, company. It’s, you know, it’s an important customer for us. In Australia, people don’t know even names like Onsemi, so I guess I probably wouldn’t expect people to know this company’s name, but it’s definitely an important customer for us. They are a security company in The US. You know, we can’t really mention the name.

Right now, the details around this deal, are still confidential, including, you know, the the fab that, we’re using, which one of them we were working with. But, but it is an important deal, it will it is already actually starting to run, and the schedule there is, is pretty tight, so we’ll be moving forward with them, rather quickly and and getting into this project. And, it’s it’s great to have this first one. As I said, we already have several, in the pipeline that that are coming. So, it’s, it happened to be that this company was the first and not another one, but, we, we’re now starting to see that, that movement with product companies as well.

Danny Eunice, Investor Relations, Weebit Nano: Thanks. And the next question is a follow-up in terms of where is the new customer going to make their chip? Is it Skywater, DB Hitech, Onsemi?

Kobi Hanoch, CEO, Weebit Nano: Mhmm. Yeah. So as I said, right now, I can’t answer that yet. So I apologize for the secrecy and everything, but some of the details are not always easy to to make public. We will, make it public when we can.

Danny Eunice, Investor Relations, Weebit Nano: Yep. And the follow-up question from another investor is is probably one you can’t answer either, Cody, but I’ll ask it anyway in the interest of asking the question. Are you able to indicate when revenues start flowing from this product company?

Kobi Hanoch, CEO, Weebit Nano: Well, I can’t give an exact answer. I will remind everyone that, you know, these deals include a license fee. In this case, it’s a design license fee, but, it’s a license fee that’s normally paid upfront. As with other deals that we do, the initial deals, you don’t get the full amount upfront. They want to hit some milestones, etc, so it kind of happens over time.

But, yeah, I think you can see already from deals that we did with dbHiTech and Onsemi how cash is coming in every quarter. And, well, revenue isn’t reported every quarter. It’ll be reported at the August, but you will see also, how the revenue flows. And it’s gonna be similar with, the product companies. There will be each company here, the deals are even more different, but there’s, there’s a license fee.

In some cases, there can be an NRE or other elements. And, of course, at the end, the the real thing is when they hit mass production and and you start seeing the royalties. But, license fee and NRE, if it exists, those kinds of things, you start seeing, pretty quickly, the the initial payments at least. Yeah.

Danny Eunice, Investor Relations, Weebit Nano: Yep. Thanks, Kobi. The the investors are pressing on here. So is part of the reason you can’t talk about it is where the chip is being manufactured because Weebit is working with a new undisclosed fab?

Kobi Hanoch, CEO, Weebit Nano: I won’t go into the details of that. We are working with, undisclosed fabs. I think that I’ve stated that several times. We are working with additional fabs that, we’re trying to push, over the over the fence and and get an official agreement and everything done. But, at this point, it’s just something that, you know, for for for different reasons, we can’t really talk about it yet.

Danny Eunice, Investor Relations, Weebit Nano: No. Fully understand. You’ve confirmed you are in discussions with multiple other parties. How many of those discussions could be classified as commercial negotiations?

Kobi Hanoch, CEO, Weebit Nano: Oh, they’re all commercial. Right now, those are the discussions that we have. They include, of course, a lot of technical parts, but the reason we’re engaged is, for commercial reasons. Everyone knows that. We know it.

The the fabs know it. So, it’s definitely, and and there’s, you know, different discussions. I mean, you know, in in these, in these contacts, we do talk about dollars, so it’s not just technology.

Danny Eunice, Investor Relations, Weebit Nano: Okay. We’ll maybe change tack a little bit, Kobi. Maybe go to a financial question here. So Andrew Johnston from MST has a question.

Kobi Hanoch, CEO, Weebit Nano: Mhmm.

Danny Eunice, Investor Relations, Weebit Nano: Can we assume that cash receipts for the quarter were license fee payments from Onsemi and DB Hitech? And was there any NRE in this amount?

Kobi Hanoch, CEO, Weebit Nano: I would say, of course, these are the two customers that are paying us right now. So, that’s where, cash is coming in general in these quarters. You get paid from the customers that you already have agreements with. And as I mentioned, without going into the details, I don’t think it’s specified in the 4C, but there’s license fee and NRE and, yeah, those kinds of elements are definitely, in there.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Moving to a broader question, Kobi. So as more contracts are signed, how significantly will the qualification times reduce?

Kobi Hanoch, CEO, Weebit Nano: Qualification is, something that actually is very hard to reduce. You know, you can try to automate a little bit and and improve a little bit on different things. But at the end of the day, I look at the big picture, it’s not just the qualification, it’s the whole technology transfer. I think that’s what people are referring to, from the moment we sign an agreement until we’re qualified. The process that we go through today of, you know, transferring the technology, to the fab, teaching them how to manufacture, adopting the the recipe to their specific tools, etcetera.

That’s something that really cannot change much. You know, we’re trying to document better and automate a little bit, but there’s a lot of just simple hard work that needs to be done there, then you need to go and manufacture the first wafers. And again, those wafers, manufacturing time, you can push to get a faster turnaround. But at the end of the day, it’s the four or six month, time frame that you have normally. It really depends on the fab how much they want to give you very high priority and rush you through.

Normally in FABs, just so you know, there’s the standard manufacturing time and then you can pay for rushing it through. Now in this case we’re not paying, so we are working with the FAB. They have the interest to rush it through and they rush it through many times. But, you know, so what I’m trying to say is overall, the the total time will not really change a lot. And by the way, the qualification time, as I I mentioned in the past, the the Israeli joke about, you know, not not being able to have a baby with nine women in one month.

You know, you need to put these wafers into ovens for a certain period of time and just wait. And, and there’s no way around it. You know, you just have to go through a certain number of hours for each wafer in, in the oven. And, so those times definitely can’t be shortened either.

Danny Eunice, Investor Relations, Weebit Nano: Okay. A question’s come through on text for me. So it’s basically seeking a clarification, Kobi. So what does the following mean? And the quote is, alongside commercial progress, we continue to make significant technical advancements and are constantly enhancing the baseline parameters of our reram.

Can you give me the details of the enhancing the baseline parameters and the significant technical advancements?

Kobi Hanoch, CEO, Weebit Nano: So, actually, that’s a very important comment, and I’m glad people notice it. I think I mentioned many times in our industry, you can’t ever stop doing R and D. You can’t ever just sit back and relax and say, Oh, I have a working technology now. It’s great. Lean back.

You you constantly have to keep running forward. Otherwise, you’re falling behind. We are constantly working on improving the quality of the technology, what’s called the bit error rate, the number of bits that fail, out of a million. We work on improving the yield. For the fab, the most important criteria is the yield.

What percent of dies that are manufactured are actually functional and they can sell them because there are always some defects in the manufacturing. Now the question is, if it’s 80% yield or 90% or 95% or 98%, and as you can imagine, those added percents at the end, those are pure revenue for them. It’s very important to keep pushing, the yield to higher levels. We’re constantly looking for, ways to improve the technology to make it a little faster, a little lower power consumption. The test time.

I know I’m going into some technical details, but just so people get the feel of things, every chip that comes out of the fab needs to undergo tests. Now if you think about it, adding, you know, one second to the test time of a chip, now multiply that by the number of chips that they manufacture and everything, that’s very costly. And these machines, the testers are very costly. Everything is is very expensive, so you want to improve the test time and reduce it. And and there are a lot of different parameters that you want to constantly work on and improve.

And in that sense, we we believe and and that’s the power of WeBit. The fact that we have such a strong R and D team, we have such experienced people, experienced management, they’re all working together. They have constant ideas of, oh, maybe we can do this a little bit differently. Maybe we can tweak something here, and that will reduce, you know, a little bit the error rate or that will change something like that. So this is ongoing and actually a a very big and important, task that we do.

And, if anything, it’s gonna grow.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Thank you for that. There’s a few questions on Skywater, Kobe. So just pulling it together effectively, can you give an update on Skywater? And secondly, is Skywater going to use Weebit’s NVM or Infineon’s NVM as part of their new agreement with design IP with Infineon?

Kobi Hanoch, CEO, Weebit Nano: So, first of all, I’d like to congratulate Skywater for achieving this, agreement with Infineon. I think, it’s an important step forward for Skywater. This is something that’s very new. It was just announced. We are in touch with Skywater about this and we are talking about it, but, at this point, it’s still, and I really apologize that I have to say that it’s confidential, but we just haven’t made decisions with them yet on this and there’s ongoing discussions.

Next week there’s going to be another meeting about it, and we’ll see where this heads. Hopefully during the quarter, we’ll have, we’ll be able to make some announcements. But right now, I just, I just really don’t have, news.

Danny Eunice, Investor Relations, Weebit Nano: Yep. That’s okay. And moving to DB HITECH. Would you look to secure nonbinding agreements to proceed with work dependent on qualification? That way, you’d be able to give a higher degree of forward planning certainty.

Kobi Hanoch, CEO, Weebit Nano: If I understand the question, correctly, basically, we are engaged today with, customers who want to manufacture at the. So on our side, and this was true with Skywater and this is true with DB Hitech and in general, we try to parallelize as much as we can. The normal mode of operation in the industry is you focus on the fab, you know, the foundry in this case, you do the technology transfer, you go through the whole process until you’re qualified, and only once you’re qualified, you’re supposed to go to the customers, the product companies and start working on the design license agreements and so on. However, that’s a very long process, and I strongly believe that it can be overlapped, I think we’re managing to get companies to realize that they can overlap. So, the design time of the design company is long, and they can actually start working on their design with our Rear M in it before qualification.

And so by the time that they’re ready, we’ll already be qualified, and they’ll be ahead of the race. That’s what we try to show them and help them gain confidence. Of course, everyone’s always afraid, well, if you won’t manage to qualify now, I think we’ve shown that we qualified in several places already. We’ve done several qualification runs. So I think people can have already a high level of confidence in the fact that we will qualify.

And that’s what we’re seeing now that we’re managing to push more and more product companies forward, even though, you know, technically, we’re not qualified at the the high-tech or at Onsemi yet, but, we are managing to get companies to move forward.

Danny Eunice, Investor Relations, Weebit Nano: Thank you. How does NANIVO EMAS work in with your solutions going forward?

Kobi Hanoch, CEO, Weebit Nano: So to be, very, you know, very clear about it, We work with them. They’re a great company, we really were very happy to do the demo together with them. However, at this point, they are working, they need to work at, very small geometries, which we’re not qualified at yet. So at this point, they’re not, able to use our reRAM, until we’ll qualify in a smaller geometry. So we’re, you know, obviously following up, and I’m sure that as soon as we have something like that and, again, I can’t talk about all the stuff that’s happening in the background with different fabs, but, as soon as we we will be able to qualify in in such a geometry, I’m sure that, the good relationships with will continue, and we’ll be able to work with them on on a on a real product and not just a demo.

Danny Eunice, Investor Relations, Weebit Nano: Okay. And in terms of progress on discrete and the discrete selector?

Kobi Hanoch, CEO, Weebit Nano: That is, is work that’s being done in the background. I think I mentioned in previous calls, right now we have this amazing opportunity in the embedded space. The embedded market has clearly decided it it needs a replacement for flash. I think I can say there’s a clear decision that real time is it. And at this point, know, it’s, except for TSMC and UMC, Weabit is the only qualified Rearam, and we’re the only independent company that has qualified Rearam.

So we have this amazing opportunity in the embedded market, and my directive for the team has been, let’s just focus on this. There’s a big vacuum here. We need to fill it in as fast as we can before someone else will somehow, somewhere, I don’t know where. You know? There’s always surprises that you never know where they come from.

So we have this opportunity. We need to capitalize on it, and we’re pushing very strongly on the embedded side. And as everyone knows, we’re expecting to announce more deals this year and moving forward to next year even more. So I believe WeBit has a very, very good chance of being the leader, taking over major market share, in the embedded Rearam space, and I need the team to be focused on this. So right now that’s the big activity.

Now we haven’t forgotten the discrete. There is work going on in the background. We’re even, you know, constantly, looking at it and and seeing what we can do there and, having sessions with Leti to brainstorm around it, but it is, I have to say, is at low priority. It’s not the major activity and it’s not what I’m putting, the big resources on right now. Once we we really feel strong and, you know, we know that we took over the embedded space, I’ll be shifting gears and putting more effort on the on the discrete.

Danny Eunice, Investor Relations, Weebit Nano: Yep. Okay. Moving on to other matters. There’s a couple of questions about the release of the quarterly, Kobi, about the the supposed delay. So it was released later in the day than previous quarterlies.

Was that intentional, or was there any issues with the ASX?

Kobi Hanoch, CEO, Weebit Nano: No. It wasn’t related to the ASX. It was actually, it was actually more about, you know, this notification about, the customer that we we signed, and, we just wanted to do it right. There were different discussions about how we released that information. We ended up deciding to basically follow the standard in the industry.

If you look at other semiconductor IP companies, the normal way that they announce design, license agreements is in their quarterlies, and they just lump it. So they basically come out and state something like, In the past quarter, we signed 10 license agreements, and they give some qualifications of which sectors or which geographies or things like that. And, you know, now that we’re seeing that, this was the first one, but we’re seeing others that will, that are getting into the pipe, we just decided to follow that, the same methodology and, just, you know, last minute things.

Danny Eunice, Investor Relations, Weebit Nano: Yep. And there’s another question about the ASX from another investor. How’s the ace how’s the a how is the ASX back and forth over the NDA versus market update situation? And is it likely in the future with when you announce product companies, they they would be more of a household name?

Kobi Hanoch, CEO, Weebit Nano: Well, we definitely plan to have some household names, as product companies as well. And, when it’ll be a big name, someone that everyone in Australia will recognize will fight to get a specific release on that. But the majority, as we’ve already learned and as I’ve learned, people in Australia don’t know a lot of these, companies anyway, and I was surprised to see how, even a name like ON Semi was not really known in Australia. We’re expecting to have, just so you understand, we’re expecting to have hundreds of of product companies or, you know, growing numbers, and it just doesn’t make any sense to announce each and every one of them. That’s part of the discussion that we had about this.

You announced the very big ones, the ones that are very significant because of the company name itself or because of the application or something. So here and there, there will be announcements. You know, it’s pretty obvious that every once in a while, we will want to make a special announcement, but, the vast majority of the cases will just be releasing it in the quarterly. I have to say, you know, the ASX, everyone knows. I have my opinions about, all of the regulation and, how it needs to be done.

Obviously, that was part of the considerations when we made this release. There we didn’t actually have to negotiate with ASX. We already knew what they would say and and how they would react to things. So it was mostly, you know, work that we did with our lawyers to just avoid getting into difficult positions. Israel, we say that a smart person doesn’t get into a situation that a wise person knows how to get out of.

So I prefer to be smart and just not get into those situations and and, find ways, in advance to, to meet the regulation and move on.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Maybe an update on GlobalFoundry. What’s happening there?

Kobi Hanoch, CEO, Weebit Nano: At this point, there’s not much. They have been trying to develop, their version of a of a reRAM. They decided that it’s very strategic for them. You know, they they’re making some efforts there. We unfortunately, I mean, I for me, it’s, I believe it’s a it’s a big mistake what they’re doing, but that’s obviously my opinion, and, they have a different opinion.

So they’re trying to make it, work, and we, we don’t really have a lot going on with them at this point.

Danny Eunice, Investor Relations, Weebit Nano: Okay. There’s three questions around your staffing and your your ability to scale up. So how many people are now employed at Webit is the first part. How much do you expect this to increase in 2025 as a function of signing more customer deals is the second part. And the third part is how many, PhDs have you hired additionally?

Kobi Hanoch, CEO, Weebit Nano: I think we have, roughly, 50 people, you know, plus or minus. I don’t remember the exact number that we have. About, 35 of them, again, roughly in Israel and 15 in France. Mhmm. We, we have been hiring.

I I’m always very cautious about hiring. You know, it’s always, I’ve seen companies get excited about, wow. We’re gonna have all these deals and this and that, and then, let’s just go hire people so we can deal with them. You hire people too early and then you have a lot of expenses before the money starts coming in and deals slip and all kinds of things like that. So we’re very cautious about our hiring, and we’re monitoring the progress of, the negotiations.

And we hire people, only when we when we know that that we need, we need the people, and we’ll need them for that project. So there’s been ongoing growth of, I would say, one, two people, per month, in the recent months towards these new deals and and towards these activities, I mean, like this product company also, etcetera. We will be continuing to grow at, at that kind of rate. Right now, I’m I’m again, I’m very cautious about not hiring a lot of people, but we are hiring. We have hired a few more, PhDs.

I think, today, the number of PhDs in the company is already about 15. Mhmm. So it’s, we’re we’re growing, but, very cautiously.

Danny Eunice, Investor Relations, Weebit Nano: Yep. But, clearly, you have capacity to handle all the commercial deals that you have in the pipeline?

Kobi Hanoch, CEO, Weebit Nano: Well, if all of them would happen today, I you know, we would be struggling, I have to say. But that’s, again, that’s part of, this, having to play this game of, you know, I’ve been around long enough to know that the chances that all the deals that you’re working on happen tomorrow, you know, they’re very slim. Happens over time. I’m just with, on a daily basis, we’re kind of looking at the progress and deciding where we hire. So we will be able to handle all the deals that are in the pipeline.

The team knows how to deal with them. We are building the infrastructure, by the way, I mentioned earlier this year, and this work has been progressing very well. This year has been the year of infrastructure at WIBIT, taking all of the things that we did manually up to now. You know, when you’re dealing with just one FAB at a time, you can do a lot of things on Excel and, you know, in Word and whatever, and it’s fine. But when you start dealing with several FABs in parallel and you have more customers coming in, you need to build, proper databases.

You need to automate the way that you work with the databases and, retrieve the data and cross data, compare it between the different fabs and all of that. So, we’ve been putting a big effort in building that infrastructure. We have, made a lot of significant progress. So we’re ready. We’re ready for the mass, you know, signing a lot of agreements in parallel.

We’re, we obviously everyone knows that we we have Lilach now who’s driving the customer success team, and she’s been setting up a lot of, methodologies and how we work with the customers, etcetera. We have, what’s called a a PMO, a person that’s responsible for defining internal methodologies. He’s studying how the flow of information, the flow of work, the process between the different teams and defining more efficient ways to do them, how to build the databases to support, this flow of information between the teams so that everything is organized, that all our procedures are now backed up by actual tools, you know, it’s not all manual and everyone needs to remember the next step. It’s, it’s automated. When I approve something, it automatically goes to the next person and things like that.

So, we’ve put in a lot of work on infrastructure, and, I think that’s, we’re ready now, and we can hire. We know where we want to hire people from. We know what we’ll do. If there is, by the way, this amazing surprise and a ton of contracts falls on us at the same time, we know which subcontractors we can count on, etcetera, to deal with the the the temporary overload, and, we’ll take care of it. So we’re ready.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Going to r and d now. How is r and d with the Weebit chip progressing?

Kobi Hanoch, CEO, Weebit Nano: I guess, I’m not sure what what the people are referring to as the Weebit chip, because, the focus when you’re dealing with embedded technology, you’re focused on, on the technology, and you license the technology. You license the module. When we talk about the chip, I guess maybe they’re referring to the discrete and the selector, which I talked about earlier. So, I think I answered that already.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Moving to various markets. In relation to current target markets, which ones are showing the fastest traction? Is it automotive? Is it IoT, AI, others?

Kobi Hanoch, CEO, Weebit Nano: Wow. That’s a good one because we’re really swamped with so much. I would say, the the the analog power management is a very hot domain. You know, that’s where Onsemi is, and that’s where, to a certain extent, most of dbHiTech’s customers are. So that’s kind of in the immediate, phase.

There’s a lot of work around AI. Our ERAM is really such a great solution for AI, and many, many companies are calling on us for the AI side of things. I cannot announce anything or talk about anything yet, but we clearly have a lot of interest from small and big AI companies. So, you know, even companies that I think in in Australia, you would recognize the name, you know, talking about that. There’s there’s really a lot of work going on around that.

And I think, automotive is probably the third one that I would put on the list. It’s automotive is just such a hot topic today in the world, and the requirements of automotive are so extreme. The fact that we did the AECQ one hundred qualification and we showed that we are robust enough for it, That’s, that’s been a game changer, and, again, there’s a lot of discussion there. Obviously, the automotive space is a space that moves very slowly. You know, when when human lives are at stake, everything is everyone is so much more cautious.

Everyone you need to go through so much more regulation and things like that.

Danny Eunice, Investor Relations, Weebit Nano: Okay. There’s a couple of questions on the tornado you’ve talked about previously, Kobe. Can you maybe just give a weather update on where we are in that cycle and what’s happening?

Kobi Hanoch, CEO, Weebit Nano: Yeah. Well, the tsunami is on its way. But, seriously, yes, I I’m I’m feeling it. I’m feeling it stronger every day. You know, I I was talking in the analogy of the crossing the chasm book, that we are in the bowling alley now.

And, you know, you just saw another pinfall with, with the product company that I was talking about. So we we are still in the bowling alley. We still need to knock down a few more pins to really get get things moving, but it’s happening. It’s happening. And I think that towards the end of the year, we will we will start sensing the wind, and next year is going to be a a very exciting year in that sense.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Moving to bit error rates. So how do how do the bit error rates for Weebits chips compare to flash and MRAM?

Kobi Hanoch, CEO, Weebit Nano: So bit error rate is, is something that you constantly improve. Now, obviously, flash has been around for so many decades that, there have been a lot of improvements on on bit error rate. But I have to say that we’re in a good position. We’re in a good position. We’re in a place where customers, you know, they’re, they always want more.

Right? I mean, they’ll they’ll never tell us, oh, this bit error rate is good enough. Don’t improve it. Right? They always will want us to improve it.

But on the other hand, I think they’re happy with what they see. The results that we have today are already good. We’re constantly improving it. I without going into the specific details, but there’s significant improvement as we progress, and we continue all the time to improve it. So we’re getting to the levels of flash.

And I think when you compare us to to other emerging memories we don’t know the details, by the way. Manufacturers don’t go and publish this. So, you know, we need to find out here and there, but I think we’re we’re in a very good position.

Danny Eunice, Investor Relations, Weebit Nano: Excellent. The next question is pretty interesting. So can it can any inferences be made from the relationship between the Weebit chairman and the CEO of NVIDIA, I e, could NVIDIA use Weebit technology?

Kobi Hanoch, CEO, Weebit Nano: Well, it’s true that Daddy and Jensen are are good friends for many years already. However, I guess, that’s where I’ll stop right now, and, I won’t go into details of that. You know, NVIDIA, to to be honest, NVIDIA is stronger on the learning side of things when you talk about AI, which is, what you do in the big data centers. And our big strength is in the, in the inference side of things. But, you know, having said that, there is use of, Webit ReRAM.

There is definitely potential use of WiBit ReRAM in the data centers. There are applications in the data center that need even our embedded. Of course, once we get to the discrete side of things, that’ll change the picture completely. But even with the embedded, it’s important that people know it’s not just for inference. There are things in the data centers that or there are, functions in the data center where, Reram can be a very good solution for them as well.

Danny Eunice, Investor Relations, Weebit Nano: Excuse me. There’s a couple of questions around competitors, Kobi. So, if I was to pull it, I would ask, are there any competitors providing Reram that are emerging? And who would you compare Weebit to most closely?

Kobi Hanoch, CEO, Weebit Nano: So, I think right now, if I try to look at the the RRAM scheme, you know, the the RRAM market, I think everyone already knows there are three qualified RRAMs. There’s TSMC, UMC, and, WIBIT. TSMC, you know, they have, what seems to be a good reRAM. It’s in mass production. People are using it.

So, you know, it’s out there, and, you know, I’ll never say anything bad about TSMC. But, no, seriously, I you know, from what we know, from what we see, and we don’t know everything, it looks like a good reRAM. UMC have the rerun that was developed by Panasonic at the time, which Panasonic sold that division to Nuvoton. Nuvoton is not really a memory company. I mean, they got that as part of the big package of Panasonic Semiconductor.

To the best of my knowledge, the team that developed that technology isn’t there anymore. You know, UMC has been struggling to to really get customers for it. Again, to the best of my knowledge, I’m not aware of any customer using it, and, I’m not aware of them qualifying it in advanced temperatures and so on. So, you know, we we’ll need to see what happens with that. By the way, Nuvoton announced, that they have MCU with, with reRAM in it, And when you check, you find out that it was the TSMC.

So, you know, but UMC is technically, they are qualified. I mentioned GF that they’re trying to do something. We don’t know where that stands. In terms of independent reram companies, Webit is really it. I I don’t know if anyone who’s close to qualifying reram that’s an independent company.

So that’s why I’m so bullish. You know? Yes. It is hard even when you’re kind of the quotes, the only one, it still is very hard to get into this market and to convince people that you’re the right one, the good one, etcetera. You need to go through all of that.

But we’re feeling very bullish about it. I’m not seeing right now any other reram company, out there that is, anywhere near qualifying. And, I mean, if I’m talking about independent providers, some people are trying to do all kinds of things internally or whatever, but, like. But so we’re feeling very, very bullish about about where we stand right now and moving forward.

Danny Eunice, Investor Relations, Weebit Nano: Okay. There’s a few questions around, The Middle East, war. So can you maybe just talk about the impact the war in Israel and the region and how it’s impacted wee bit or otherwise? Yeah.

Kobi Hanoch, CEO, Weebit Nano: Well, as I think we we released a couple of times in the last, two years, The war here and the whole situation is obviously very unfortunate, and nobody likes being in a place where people are trying to bomb you and all of that. At the same time, when it comes to the actual industry, etcetera, and that’s part of WeBit already preparing for growth. We’ve already prepared in advance a business continuity plan, a risk analysis, etcetera, etcetera. We went through the different scenarios and prepared ourselves for this. And so I can say with full confidence, the situation here in Israel has not impacted our timelines at all.

The team continued to work. I think people know our lab is in a shelter room, so in a room that’s kind of protected from bombs even and so on, so it can continue to run. And the team is set up to work from home or from remotely. Bottom line is there has been no impact on WeBit in that sense.

Danny Eunice, Investor Relations, Weebit Nano: Excellent. Going back to the product customers, there’s a couple of questions here. So is there a consistent size request with product customers, or is it varied? Has Weebit not being qualified to smaller geometries delayed any customer engagements? Can you maybe talk about, are they singular products or possibly multiproduct companies that you’re talking to?

Kobi Hanoch, CEO, Weebit Nano: So, let’s see. We, you know, the the the the the variety of customers that we talk to is unbelievable. I mean, we’re talking to people in different application spaces, different memory size needs, different, each one of them really has different requirements. Some of them focus more on the voltages, some of them on the power, some of them on the speed, some of them on the area, and we we need to see how we can answer all these needs. So in that sense, there’s a big variety.

Obviously, the ones that we make the most progress with are the ones that we can address their needs right now where we are working with fabs like DB Hi Tech or Skywater or Onsemi or others that I can’t mention yet. But, you know, the fact that we’re not qualified, for example, at the FinFET level yet, obviously, that means that people that need FinFET level, you know, we we’re keeping in touch with them, but we can’t really progress until we’ll have a a qualified, FinFET, geometry.

Danny Eunice, Investor Relations, Weebit Nano: Okay. The next question is from Jonathan Higgins at UCP. So noting you’ve now got foundries, IDMs, end product, cash flows are doing really nicely. Can you maybe just talk us through the the timeline from customer signing through to licensing and into market?

Kobi Hanoch, CEO, Weebit Nano: So, again, customer is, is a tricky word because we have the fabs and the, you know, the the foundries, the on the one side, and we have the product companies. I think in in terms of the fabs, people already know pretty well the the process of, you know, we need to do the the technology pros transfer, then we need to do the manufacturing of the first prototypes, then we need to do the testing, and then we finally do the qualification. And, overall, it’s it’s, you know, roughly can be eighteen to twenty four months order of magnitude. With the product companies, that really varies, actually, because it really depends on what the product is, how complex it is, where they stand with the fab. So it’s really, I mean, the it varies significantly.

Some products are are rather simple, and you can do the design in a few months and and be ready. And sometimes it’s products that are like, you know, like you talked about NVIDIA or Intel, processors that take years to design. So it’s, there’s a big variance at that level.

Danny Eunice, Investor Relations, Weebit Nano: Okay. We’ve got about ten minutes, and we’ve got over 10 questions. So we’ll try and rush through these. I’ll compound the following on. There’s a couple of questions around your listing, Kobi.

So do you intend to list on the Nasdaq, for example, or any other exchange? And do you think customers have a reluctance dealing with an Aussie based company in that respect?

Kobi Hanoch, CEO, Weebit Nano: So the customers, I don’t think they really care. When we talk to the fabs, when we talk to the product companies, I don’t think it really matters to them if we are, Nasdaq or Aussie or whatever, Tel Aviv Stock Exchange based. They I mean, they are impressed, or it’s important for them to know, for example, that we’re a public company, but that’s about the level of, and even that isn’t really very, very important. But, so that’s not the big thing. In terms of Nasdaq in general, I mean, you know, I I joke that if I would get a dollar for every time I’m asked the question, I’d never have to raise money.

Right? Everyone constantly asks me about it. It’s obvious that kind of the natural place for a company like Wibbit would be Nasdaq. Having said that, we are in the ASX. ASX, with all of my complaints about regulation and everything, it has been good to us.

We have an amazing, amazing shareholder base. And, you know, I think, I’m really thankful to to to our shareholders and their support and all. So we don’t have any urgent need to move to Nasdaq. And at this point, you know, I I don’t really, see it as as something that we have to do or whatever, and we’re happy. Raised a year ago less than a year ago, we raised $50,000,000, kind of as a in very good terms.

So, it’s not something that is, anywhere, you know, urgent or anything that’s really right now, I’m focused on commercializing. I’m focused on building the company. I’m focused on building the revenues. That’s that’s what I’m focused on. I’m not focused on, you know, Nasdaq or not Nasdaq.

Danny Eunice, Investor Relations, Weebit Nano: Yeah. Okay. Going to your original guidance, are you still on track to meet or exceed the targets of signing customer and fabs in calendar year 02/2025? And is that next signing likely to be a customer or a fab?

Kobi Hanoch, CEO, Weebit Nano: We, so we committed to to sign three fabs and three product companies. We basically announced ON Semi, and now we have a product company, so we still have at least four to go. There’s a lot happening. I don’t know which one will happen first. It’s really unbelievable, the dynamics sometimes of these, discussions and negotiations.

The goal is always to exceed, you know, not just to meet, but to exceed. You know, it’s very tough. Some of these negotiations, there are surprises that have nothing to do with us that cause delays. We’ve seen that so many times already in the past, but, I think, we’re very bullish. We believe that, we can meet these goals and not only these goals of, you know, the the agreements, but beyond that, we have internal goals of, improving the quality of, we talked about bit error rate and things like that.

We have internal goals and, the team is measured on it, by the way, know, their yearly, their yearly, bonuses or what’s called, Variable pay depends on achieving these milestones, and we’re all set to, to achieve the milestones. So we’re we’re on track.

Danny Eunice, Investor Relations, Weebit Nano: Great. Okay. Moving to some personal associations. Does doctor James Tour still have an association with the company?

Kobi Hanoch, CEO, Weebit Nano: Doctor Tour is still, one of the top, I believe, 20 shareholders of the company. He’s he believes in the company very much. You know, obviously, we’ve gone so such a long way since we started off with his technology. So, he’s not involved in any of the technical work here or anything like that, but he’s a very big believer in Webit and, you know, holding to his shares and, you know, always proud to have him on the register.

Danny Eunice, Investor Relations, Weebit Nano: Okay. The next one is around your shareholder, Mitav Dev. Have they still maintained their shareholding in Weebit?

Kobi Hanoch, CEO, Weebit Nano: Definitely. Definitely. They are holding, and, you know, we’re, I I keep, communicating and updating them, and, they are still our number one, shareholder, and I’m very proud of it.

Danny Eunice, Investor Relations, Weebit Nano: Yeah. Great. Okay. We’ve probably only got time for two more questions. So the second last one is, are the future customers of Ouibet, are they coming to you, or are you still out there knocking?

Kobi Hanoch, CEO, Weebit Nano: We’re getting more and more companies coming to us. That’s part of the change that we’re seeing, and that’s a good question. Question. That’s a I think that’s a very good question. So we are now, at the mode where, yes, we’re still knocking on people’s doors, but there are more and more that are calling on us and coming to us, and and that’s part of the change that we’re seeing.

Danny Eunice, Investor Relations, Weebit Nano: Okay. And the final question, Kobi. Are there any plans to collaborate with companies in neuromorphic computing, Edge AI, or NPU development?

Kobi Hanoch, CEO, Weebit Nano: Well, I think people know that Weebit is very active in this space. Weebit is, I mean, I’m I’m in the company almost eight years now, and one of the very first things that we did was we had some announcements with Neuromorphic Research Institutes, and we announced at the time that we worked with, Polyme, with, the Technion, IIT Delhi and so on. We’ve been involved in this all along. We’ve been working with companies in this space, even to a certain extent the work with NanoView was kind of in relation to that. So it’s ongoing, and, I think I mentioned several times our Rear M is a really, really good solution for near memory compute and in memory compute.

And in both cases and people are calling us. You know, referring to the previous question, in these domains, people are calling on us. We don’t call on them so well, we call on them, but mostly, they call on us, actually. We have more people calling on us in that space.

Danny Eunice, Investor Relations, Weebit Nano: Okay. That concludes the q and a session. I will now hand back to Kobe for any closing remarks.

Kobi Hanoch, CEO, Weebit Nano: Well, thanks, Danny, for, for this session. I think, as I said, things are moving, you know, steadily forward. I think people know already. In semiconductors, things don’t just happen overnight, but I hope that you can see the steady progress. I hope that everyone can see we’re moving forward.

We’re signing more agreements. We have more to do. We’re achieving, our milestones And, you know, in in wee bit, it’s all about just, keeping keeping, the work, going forward, progressing, and we will get these additional agreements, and we will you know, the cash, the revenue, and everything, you’ll you’ll be seeing them, as a as a side effect of that.

Danny Eunice, Investor Relations, Weebit Nano: Okay. Thank you, Kobe. Thank you to all the participants on the call. You may now disconnect.

Kobi Hanoch, CEO, Weebit Nano: Thank you.

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