Quantify in Q4: eyes US Intelligent Building Solutions Market
Quantify Technology Holdings Limited (ASX:QFY), a disruptive player in Smart Buildings and the multi-billion dollar IoT market, has provided an extensive June quarterly update.
Review of operations
In May 2018, QFY entered an agreement with Electronic Caregiver LLC (ECL), a United States-based company, for the development, sales, marketing and distribution of an integrated, collaborative solution targeting the US and Australian markets.
The collaborative integration aims to enhance and expand ECL’s product offering to their established client portfolio. QFY’s data collection and control capability adds significant value by providing additional tools for living assistance and risk assessment to the aging and chronically ill empowering them to safely maintain their independence for longer.
The collaboration has the potential to significantly impact the retirement, assisted living and home care markets in the US and Australia. Successful cooperation with ECL offers a beachhead from which the company can launch its Intelligent Building Solution to the US consumer market, one of the largest markets in the world.
It should be noted, however, that this is an early stage tech company and success is no guarantee. Investors should seek professional financial advice before making an investment.
In May, the company announced the appointment of two independent directors, Brett Savill and Lee Christensen, to its Board as the Company enters a new phase of opportunity and growth.
Brett Savill has a track record in business development, growth and development and implementation of acquisition strategies. Brett is a former PriceWaterhouseCoopers Partner in the UK, and has 25 years’ experience across strategy, business development, start-up growth and innovation.
Lee Christensen is an experienced commercial lawyer, formerly a Senior Partner of Gadens, and will be serving as interim Chairman of the company. Lee has significant experience in the areas of banking and finance, commercial and corporate law and his areas of expertise include guidance and advice to listed companies on issues of meeting procedure and corporate governance.
Aidan Montague resigned as an executive director of QFY to pursue other interests. The company is well advanced in interviewing potential candidates for the position of Chairman, all with significant business experience aligned with the growth opportunities available to the company in its current phase, with announcement of that appointment expected in the short term.
Major collaboration with St John of God Accord
In June, QFY announced its collaboration with St John of God Accord for the development of a proof-of-concept home for people with intellectual disabilities. The partnership with St John of God Accord, a division of St John of God Health Care, will see QFY demonstrating the capabilities of the company’s technology in healthcare and supported accommodation, alongside Samsung and other technology leaders.
The company will continue to provide its expertise in healthcare and retirement living technology to the project which provides a valuable case study for the application of the QFY’s platform in assisted living, a sector focused progressively on truly intelligent solutions for improved health care and supported living.
Corporate and financials
QFY finished the quarter with a cash level of A$0.451 million. Subsequent to the quarter end, the company entered into a Research & Development Finance Facility from which it has drawn down $0.850 million.
Further, it is anticipated it will receive a total of A$1.6 million less associated costs, from the AusIndustry R&D Tax Incentive program in mid-September which will be used to supplement existing working capital and repay the Research & Development Finance facility.
What’s in the pipeline?
QFY has fitted out and commissioned Harvey Norman Commercial Division’s (HNCD) demonstration suite at the prestigious Burcham development in Rosebery, NSW. The apartment will be used to showcase the residential application, scalability and flexibility of the company’s technology as well as its enterprise applications.
The Burcham demonstration suite is an important sales and marketing tool. HNCD’s sales force will be actively selling QFY’s product line to residential and commercial construction projects as a major piece of their expansion initiative around building smart homes of the future.
A key focus of QFY’s remains to be the development and support of the relationship with Harvey Norman Commercial Division (HNCD). With the tools, sales collateral and demonstration suite ready, the companies will be working together looking to increase HNCD’s market leader status with major developers in NSW and ACT and build orders for QFY’s state-of-the-art technology.
The company continues to advance discussions and plans with business opportunities previously announced to the market, including seeking licensing opportunities for its technology platform with Greaton Group. QFY’s technical teams, which comprise hardware, firmware, software (cloud and application) and design, are making enormous headway and continue to improve and refine the company’s product suite.
Having already undertaken small production runs of its products to date, QFY is in discussions with manufacturers gearing up for large scale production runs at the end of this year to be delivered to the Australian market. The company expects these activities will lead to further growth and expansion during the remainder of CY2018 and will continue to evaluate complementary opportunities in new market verticals.