Highlights

  • Revenue for the six months to 30 June 2025 rose 43% to A$2.49 million with an 82% gross margin.
  • The net loss was A$3.70 million, including A$1.38 million of finance expense and a A$1.16 million convertible note charge.
  • Convertible notes converted into 468,168,823 shares in May 2025, and a A$2.0 million placement followed in June.
  • Cash rose to A$863,000 from A$131,000, and net assets improved to A$177,000 from a deficit of A$2.13 million.

Way 2 Vat Ltd (ASX:W2V) lifted revenue sharply in the first half of 2025 and used fresh capital to move its balance sheet out of deficit. The Israeli-incorporated indirect tax technology company, which trades as Way2VAT, reported revenue of A$2.49 million for the six months to 30 June 2025.

Company Snapshot

Way2VAT provides an AI-driven platform for indirect tax. Its products include Way2Invoice for e-invoicing, Global VAT and GST Reclaim, VAT and GST Reclaim in Spain, AP Invoice Compliance and VAT consultancy through its sister firm RBCVAT. It was founded in 2016 and listed on the ASX in 2021, with offices in Reading in the UK, Barcelona, Petach Tikva in Israel and Craiova in Romania.

Enterprise clients rose to 414 from 375 a year earlier. A global VAT reclaim and AP Invoice Compliance contract was signed with JLL during the half.

First-Half Results

Revenue was A$2,491,000, up 43% from A$1,736,000, and gross profit was A$2,047,000. Operating expenses fell 7% to A$4,372,000, and the operating loss was A$2,325,000. The net loss was A$3,702,000, against A$3,241,000, after A$1,384,000 of finance expense. These figures are unaudited. The reporting currency changed from US dollars to Australian dollars.

Operating cash outflow was A$3,204,000. Cash was A$863,000 at 30 June 2025, against A$131,000 at the end of 2024, and net assets were A$177,000, against a deficit of A$2.13 million. Current liabilities exceeded current assets by A$146,000.

Capital Moves

In January 2025, the company issued A$2.55 million of convertible notes, which converted into 468,168,823 shares in May 2025. A placement of A$2.0 million at A$0.007 per share followed in June 2025. Shares on issue were 1,699,469,683 at 30 June 2025.

Bank debt includes a main loan of about NIS 2.65 million, which the lender extended to 31 August 2026, a NIS 1.0 million loan due on 1 October 2025 and a credit line of A$720,000 of which about A$57,000 was drawn. The bank holds a floating charge over all assets.

Outlook and Risks to Watch

Directors expect the company to meet its debts as they fall due, relying on further shareholder support and revenue growth from existing and new clients. Management expects full-year 2025 operating costs to fall further than in the first half, and no dividends have been paid or proposed.

The half-year report discloses a material uncertainty about going concern. Other risks include heavy operating cash outflows that depend on continued funding, near-term loan maturities, an option liability of about A$162,000, legal proceedings against its Spanish subsidiary with exposure of up to A$75,000 and currency exposure across four countries. The latest documents reviewed cover the period to 30 June 2025.

Stock Price Information

Way 2 Vat shares fell 10% to A$0.027 on 27 October 2026, giving the company a market capitalisation of about A$8.19 million. The stock is down 70% over the past year.