Quarterly Activities and Cashflow Report
Melbourne, Feb 1, 2017 AEST (ABN Newswire) - Xped Limited (
ASX:XPE) ("Xped" or "the Company"), the Internet of Things ("IoT") Technology Company has today released its Quarterly Appendix 4C filing for the quarter.
QUARTERLY HIGHLIGHTS
- License Agreement with Lenze Technology
- Porting complete to Chipset Manufacturers
- Intel Smart Home Platform Integration
- $10m Convertible note secured and SPP offer
- MOU Signed with Arcadyan
- Deployment of Customer Registration cloud service
- JCT Channel Partners appointed
- Functionality added to iCharger device with Xped App
- Further patents granted
- KS Orka Completes Sokoria Acquisition
LICENSE AGREEMENT SIGNED WITH LENZE
On the 24th January, Xped announced it had signed its first end customer licensing agreement with Shenzen Lenze Technology Co LTD ("Lenze") and their subsidiary Complex Semiconductor (HK) Co. LTD ("Complex").
The Company has licensed its Auto Discovery Remote Control ("ADRC") technologies to Lenze in return for a fee payable per active download of the Xped App.
Lenze will pay Xped a fee based on a per active download of Lenze or OEM branded versions of the Xped App from either Google Play or Apple app stores.
Under the terms of the agreement, Lenze and Complex have obtained a non-exclusive license to utilise Xped technologies in any of their products.
MOU SIGNED WITH ARCAYDAN
On the 12th January, the Company advised it had entered a Memorandum of Understanding ("MoU") with Arcadyan Technology Corporation (TPE:3596) ("Arcadyan"). The MoU would result in both companies working together for the purpose of entering a binding agreement for the licensing of several Xped Technologies and to develop a complete end to end IoT solution for Arcadyan and for their customer base.
Following the execution of the MoU both parties will enter detailed exchange to verify Xped technologies integrate successfully with Arcadyan products ahead of official launch.
Xped hopes to reach a binding agreement with Arcadyan in Q2 2017.
INTEL SMART HOME PLATFORM INTEGRATION
On the 22nd December, the Company announced it had completed porting of ADRC on Intel's Smart Home Gateway. This followed the MOU entered with Intel (NASDAQ:INTC) in April allowing ADRC technology integration to Intel Smart Home Platforms. The Integration of ADRC components into Intel's Smart Home Development Acceleration Platform allows more complete Smart Gateway solution, taking advantage of Intel's efforts with OCF's Iotivity solution, rules engine, and security components.
PORTING COMPLETE TO CHIPSET MANUFACTURERS
On the 18th November, the Company announced it had completed porting of ADRC technologies to chipsets from both US listed chipset manufacturers who had previously entered MoUs with the Company. Xped would seek to identify the named parties at the appropriate time.
The Company also confirmed it was working to near completion of the porting of ADRC to Telink's 8269 SOC.
Following the successful porting the Company would enter discussions with clients of the chipset manufacturers, with the aim to reach licensing agreements.
COMPLEX SEMICONDUCTOR ICHARGER
On the 15th December, the Company announced it had developed new functionality for the Xped App that provides control over Complex Semiconductor's iCharger device and supports iPhone and Android with language support for English and Chinese.
Complex Semiconductor designed the electronics and plastic housing for the product and the Company developed the custom plugin for the Xped App. The plugin enables the playback of music stored on a smartphone to be streamed over Bluetooth to the device which then broadcasts on an FM radio frequency. The device is very popular in mainland China, with the legacy version selling in many millions per month.
ST MICRO
On the 12th December, the Company announced it had begun building samples of the first production ready ADRC and DiscoverBus enabled products ready for delivery to Vital Xense using ST Micro microprocessors.
On the 16th December, the Company announced it had ported its ADRC technology on the STM32 Microcontrollers using the STM32Cube development ecosystem. Given the robustness and feature set capabilities of the STM32 series, Xped will look to utilise these chipsets in a number of industrial applications for customers and partners.
XPED APP UPDATE
On the 16th November 2016, the Company released an update regarding the Xped App confirming it was now available in both the Google Play Store for Android devices and the Apple App store for iOS devices.
The Company also indicated a Chinese language translation of the Xped App had been completed for both iOS and Android. The Chinese language interface is critical to the adoption of the technology within the Chinese market.
$10M CONVERTIBLE NOTE SECURED AND SPP
On the 9th November, the Company entered voluntary suspension following an initial trading halt in regards to a proposed capital raising. On the 16th November 2016, the Company announced it had secured $10m premium to market convertible 3 year, 8.35% note along with a Share Purchase Plan ("SPP") up to $7.5m priced at 3.3c with a 1:1 attaching option exercisable at 5c and expiring December 2018. The Company sought to have the option listed post regulatory and shareholder approval.
OPEN CONNECTIVITY FOUNDATION
On 12th October, Xped announced it had been accepted as a Platinum member of the Open Connectivity Foundation ("OCF").
Xped attended the OCF Fall Members Meeting held in Taiwan during November and provided the opportunity for the Company to gain exposure following an upgrade to Platinum Member.
Chris Wood will lead the opportunity for Xped with the focus on Health Care and Smart Home after joining respective working groups for representation. Chris also recently attended CES 2017 in Las Vegas and exhibited alongside fellow OCF peers engaging with the audience.
INVESTOR ROADSHOW PRESENTATION
On the 31st October 2016, the Company released an Investor Presentation to market.
The presentation was released ahead of a North American roadshow and outlined the strategy and expected timelines the Company was working towards over the next 12 months.
CUSTOMER REGISTRATIONS CLOUD SERVICE
During the quarter the team deployed the Customer Registration cloud service on Microsoft Azure which integrates with the Xped App.
Progress continued to be made on the manufacturer Product Registration cloud service. This would allow product manufacturers to leverage the ADRC technology platform to enhance their consumer's experience, and capture valuable data.
VITAL XENSE PRODUCTION SAMPLES
On the 12th December, Xped announced it had begun building production samples of ADRC and Discoverbus technologies for delivery to Vital Xense Pte Ltd ("Vital Xense").
The products were being built with the latest generation ST Micro microprocessors, allowing for ultra-low power battery based sensor systems that will run for several years without the need for battery replacement.
The products being delivered to Vital Xense will enable the monitoring of temperature, humidity, and door open/close, which are key aspects to in data centre efficiency.
JCT HEALTHCARE UPDATE
On the 20th December, Xped announced its wholly owned subsidiary JCT will be expanding the supply of their innovative healthcare equipment and services into aged care.
JCT continues to expand its national presence and recently appointed 5 new channel partners. These partners will be responsible for promoting and distributing the latest Nurse Call range of products and solutions as JCT gears up for expansion.
JCT's revenue reported for the quarter ending 30 December was $287,628.
JCT TRANSACTION SATISFIED
During the quarter, the Company announced the two conditions related to secondary cash payment to the shareholder of JCT were met. Following the condition being satisfied and under the terms of the Sales and Purchase Agreement ("SPA"), Xped agreed to make the secondary cash payment of $750,000.
FURTHER PATENTS GRANTED
On 16th November, Xped announced its Arrangement for Managing Wireless Communication Between Devices (ADRC) patent had been granted in Chile along with Arrangement for Remote Control Arrangement (XERTS).
PROPOSED ACQUISITION OF CODIUM ENDS
On the 14th October, the Company entered a Term Sheet with the shareholders of Codium Pty Ltd ("Codium") to acquire 70% of the issued capital in Codium. Following completion of due diligence, Xped sought to amend terms of the transaction to allow it to proceed. The shareholders of Codium were unable to agree to these proposed amended terms and chose to withdraw from the transaction. Both parties were released from the obligation sunder the Term Sheet.
CORPORATE WEBSITE
On 4th October, the Company launched its new corporate website. The new website provides an improved platform and user experience for visitors to navigate and keep up to date on Company developments. Visit the new website at http://www.xped.com
ANNUAL GENERAL MEETING
Xped held its Annual General Meeting on 30th November 2016 in Adelaide and was well received by the audience.
The Company appreciated the opportunity to engage further with its shareholders during question time and post the meeting.
EXTRAORDINARY GENERAL MEETING
On the 19th January, the Company held an Extraordinary General meeting ("EGM") to seek shareholders' approval on several resolutions regarding the convertible note and SPP.
All resolutions were passed in favour allowing the Company to accept the funding arrangements proposed.
SPP UPDATE
On the 27th January, the Company announced it had received total funds of $3,118,800 under the Share Purchase Plan offer.
The Company will now look to place the shortfall amount.
MEDIA COVERAGE
On the 30th January, Xped's Managing Director Martin Despain appeared on SkyNews Business Channel. Martin spoke about our Internet of Things platform and the key advantages of Xped's technology offering. A copy of the video can be seen here:
http://vimeo.com/201764873
LEGACY PROJECTS
SOKORIA GEOTHERMAL PROJECT
The Company continued to work with KS Orka under the terms of the Conditional Sale and Purchase Agreement ("CPSA") for divesting Xped's interest in PT Sokoria Geothermal Indonesia.
The project continues to progress well with KS Orka having provided over. USD$1.5m to date and KS Orka confirming in January 2017 they will acquire the project following conditions of the CSPA having been satisfied.
Updates will be provided further to market once the drilling work is complete and Orka indicates its notice of intent to develop the full project at which time Xped will receive due payment up to USD$947,368 via payment commitment agreement between the parties.
AUSTRALIAN GEOTHERMAL PROJECTS
The Company is planning to restore and rehabilitate GEL223 and GEL611 tenements in South Australia in 2017. Meetings are underway with contractors to engage in the work and the Company is liaising with the Department of State Development for scheduling activities.
To view the full Quarterly Report, please visit:
http://abnnewswire.net/lnk/8PS268P3
About XPED Ltd
XPED Ltd (ASX:XPE) is an Australian Internet of Things (“IoT”) technology business. Xped has developed revolutionary and patent-protected technology that allows any consumer, regardless of their technical capability, to connect, monitor and control devices and appliances found in our everyday environment. Xped provides technology solutions for Smart Home, Smart Building, and Healthcare.
At Xped, we’re Making Technology Easy Again(TM)
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