Ann: Appendix 4D and Interim Report, page-11

HI Hingd----------------- maybe someone ----missed something ? $150K you say --? True up to 31-12-2023-
Yet if you look further you may be enlightened. Helps to understand the intricacies - of Balance Sheets.

Licensed ReRAM to DB HiTek
In October, the Group signed a non-exclusive licensing agreement with South Korean Tier-1 foundry DB HiTek.
Under the agreement, comprising technology transfer and qualification, DB HiTek’s extensive customer base will
have access to Weebit ReRAM for their designs.
Weebit ReRAM will be available in DB HiTek’s 130nm Bipolar-CMOS-DMOS (BCD) process, used for analog, mixedsignal and power designs in consumer, industrial, and other IoT devices. DB HiTek has the option to extend the
agreement to other process nodes. Technology transfer to DB HiTek is now well underway.

Generated first IP revenues
The Group marked a major commercialisation milestone during the half-year, receiving its first IP licensing
proceeds from two customers totaling A$446,313. While these initial licensing fees are relatively small, they
represent the Group’s significant technical progress in recent years. In 2024, the Group expects ongoing small
licensing and NRE payments from its existing customers, as well as other foundries and IDMs as they are signed
up during the year.
The Group’s IP licensing model will see it generate revenue from foundries, IDMs, and product companies via
licensing fees for design and manufacture; engineering fees or designs and processes; and royalties per customer
use. Royalties will be received once customers begin shipping end products, which is not expected to be in 2024.

Further in the explanations - Note 2-
The performance obligation for the SkyWater agreement was completed during the half-year and accordingly the
license fee of $153,258 was recognised as revenue.
As the license agreement with DB HiTek was only signed in November 2023, no revenue was recognised during
the half-year as none of the performance obligations associated with the license agreement had been met as at
31 December 2023. Consequently the first payment received of $293,055 was recognised as a deferred revenue
and is included in contract liabilities.

Also when notice of the signing of the DB agreement I believe it was mentioned - at $100,000 ( US$ ? I will look later - relying on memory now) Seems to have grown a bit ! Something I believe will become part of the WBT income - as it progresses growth of income ----All my opinion

Happy to be corrected