4DS Reports 73% Loss Reduction to $914K, Ends $4.5M Infineon Contract

Financial Performance and Cost Management

4DS Memory Limited has reported a half-year loss of $914,658 for the six months ending 31 December 2025, a marked improvement from the $3.46 million loss recorded in the same period last year. This reduction reflects the company’s ongoing efforts to manage costs amid continued investment in its research and development programs. Key cost-saving measures included a 50% reduction in the Executive Chairman’s salary and the elimination of all Non-Executive Director fees from November 2025.

Strategic Shift Following Manufacturing Setbacks

The company completed a root cause analysis of its 20nm Sixth Platform Lot, revealing that etch residues during manufacturing caused electrical shorting in its memory devices. This discovery led 4DS to terminate its $4.5 million collaboration agreement with Infineon Technologies LLC, a move aimed at preserving capital while reassessing its technology roadmap. The decision also included disengagement from imec, signaling a significant pivot in the company’s development strategy.

Ongoing Strategic Review and AI Focus

Since September 2025, 4DS has been conducting a comprehensive strategic review to identify value-accretive pathways. The review is exploring opportunities within and adjacent to its existing semiconductor memory technology, with a particular interest in AI-enablement. This focus aligns with the growing demand for faster, denser, and more energy-efficient computing architectures in AI and high-performance computing sectors.

Leadership Changes and Governance Stability

The half-year period saw the resignation of key executives, including the Chief Strategy Officer and Chief Technology Officer, resulting in the lapse of related share options. Despite shareholder nominations for new directors at the Annual General Meeting, the existing board was largely reaffirmed, maintaining governance continuity during this transitional phase.

Financial Position and Outlook

As at 31 December 2025, 4DS held $3.34 million in cash and $5.45 million in term deposits, with net tangible assets of $7.65 million. No dividends were declared, reflecting the company’s focus on capital preservation. The financial statements were reviewed by PKF Perth without qualification, underscoring the company’s compliance with accounting standards despite operational challenges.