FortifAI Secures FastAI’s Nol8 Tech, Posts First Positive Cash Flow Quarter
FortifAI Limited has acquired FastAI and its cutting-edge Nol8 Technology, driving a 14.7% revenue increase and delivering positive net operating cash flow for the first time in Q2 FY26.
- Acquisition of FastAI and exclusive licence to Nol8 Technology
- 14.7% revenue growth to $942k in the quarter
- Positive net operating cash flow of $292k achieved
- Strong cash position of $2.89 million with no debt
- Nol8 Technology targets ultra-low latency data processing across AI and telecom sectors
Strategic Acquisition Boosts FortifAI’s Tech Portfolio
FortifAI Limited (ASX – FTI) has taken a significant step forward in its technology and commercial ambitions with the acquisition of FastAI Pty Ltd, securing exclusive rights to the innovative Nol8 Technology. This neural-network based data processing engine operates on a "Data-in-Motion" principle, processing and classifying data in real time rather than post-storage, effectively eliminating latency bottlenecks that have long challenged industries reliant on rapid data throughput.
The acquisition, approved by shareholders shortly after the quarter ended, complements FortifAI’s existing projects and positions the company at the forefront of ultra-low latency computing. Nol8’s potential applications span artificial intelligence, finance, edge computing, next-generation telecommunications (5G/6G), and cybersecurity, sectors where speed and cost-efficiency are paramount.
Financial Performance Reflects Operational Discipline
FortifAI’s December quarter results underline a positive trajectory. Revenue from customer receipts rose by 14.7% to $942,000, driven by ongoing contracts through its Mighty Kingdom Studio, which services clients such as Google and Spin Master, and generates royalties from East Side Games. Notably, the company reported its first quarter of positive net operating cash flow at $292,000, a milestone reflecting stringent cost management and operational efficiencies.
With a closing cash balance of $2.89 million and zero debt, FortifAI maintains a robust financial footing. The company also anticipates receiving approximately $1.8 million in government rebates and tax incentives in the coming quarter, which will further bolster its liquidity and capacity to invest in growth initiatives.
Integration and Growth Outlook
Looking ahead, FortifAI plans to integrate the Nol8 Technology with its existing Mighty Kingdom business unit, leveraging teams based in Australia and Israel. This integration aims to accelerate the development of a minimum viable product (MVP) for Nol8, expand technological capabilities, and pursue strategic partnerships that could unlock new commercial opportunities.
The company’s leadership emphasises that the combination of a strong balance sheet, ongoing gaming revenue, and the cutting-edge Nol8 platform creates a solid foundation for future growth. Expansion of the Nol8 team locally is also underway to support these ambitions.
While the acquisition and financial improvements are promising, the company will need to navigate the complexities of technology integration and market adoption to fully realise Nol8’s potential.
Bottom Line?
FortifAI’s acquisition and first positive cash flow quarter set the stage for a pivotal year of technology integration and commercial expansion.
Questions in the middle?
- How quickly can FortifAI commercialise the Nol8 Technology and secure new partnerships?
- What are the risks and challenges in integrating the Israeli and Australian teams and technologies?
- When will the anticipated government rebates and tax incentives be realised, and how will they impact cash flow?
