RE: Roll on Monday14 Feb 2026 09:51
Over the past few months, Ethernity has been progressing the ASIC opportunities detailed in previous announcements, most recently in the business update on 24 July 2025. The Company previously indicated that it continues to engage with a leading wireless backhaul OEM on various execution strategies of the ASIC plan, with a goal to converge on the best joint route for execution. The Company has now decided to de-risk its ASIC plan by shifting from an OEM co-funded model to a semiconductor partnership model, supported by interest from leading wireless vendors. Under this approach, the Company would partner with a semiconductor vendor who would fund the full ASIC cost, meaning Ethernity would not be required to raise the millions of dollars upfront to co-fund the development costs. Instead, Ethernity would receive non-recurring engineering ("NRE") income for its role in the development, along with a future revenue share. Execution of such a plan with a lead semiconductor vendor would enable Ethernity to achieve near-term positive cash flow and profitability, in contrast to the years of investment required under the previous model.
The Company has commenced discussions for this model with a lead semiconductor vendor operating in the mobile and broadband market, and will continue to update the market should these opportunities materialize into a contract.
Notwithstanding the fact that the shift to a possible partnership with semiconductor partner would not require the significant fundraising that was necessary under the original ASIC plan, the Company still has an immediate cash requirement to continue operating as a going concern. The Board is actively exploring ways to address this and further announcements will be made as appropriate.
Anything can happen then dont be too late if they can strike a deal.
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