Key Highlights

  • Zimi’s Matter range has passed certification testing and pre-production ahead of a launch in 2027.
  • Zimi signed an exclusive three-year distribution agreement with Directed Electronics Australia for retail, direct-to-consumer and direct-to-business sales.
  • Cash was $344,000 at 30 September, and the company estimated 0.48 quarters of funding before an $835,000 R&D tax refund in October.
  • Net operating outflows were $714,000 in the quarter, with staff costs of $544,000 the largest item.

Zimi (ASX:ZMM) designs connected electrical products for the home, including smart switches and powerpoints. It is replacing its Bluetooth-based range with a new line built on Matter, the industry interoperability standard backed by major technology companies. According to its September quarter activities report, released on 28 October 2026, the Matter range has passed through certification testing and pre-production ahead of a launch in 2027. Zimi has also secured a second distributor to take the products to major retailers.

The challenge is funding the period until then. Zimi had $344,000 in cash at 30 September. Its Appendix 4C estimated 0.48 quarters of funding at the rate of spending recorded in that quarter. After quarter end, an $835,000 R&D tax refund arrived on 16 October. However, the board says it is evaluating further funding options, including another Capital raising.

A path into retail

In late September Zimi signed an exclusive three-year distribution agreement with Directed Electronics Australia, with an option for a further two years. The agreement covers retail, direct-to-consumer and direct-to-business sales of the Matter range in Australia and New Zealand. Zimi says Directed's network includes more than 10,000 retail outlets, among them Bunnings, JB Hi-Fi, Harvey Norman, Noel Leeming and Officeworks. That describes Directed's existing reach. It is not a commitment from those retailers to stock Zimi products, and no purchase volumes have been disclosed. GSM Electrical, trading as Trader, continues to handle the electrical trade and wholesale channels.

Sales and costs

Invoiced Revenue for the quarter was $289,000 including GST, and customer receipts were $240,000. Zimi held orders on hand of $532,000. It is working with distributors to sell remaining Bluetooth stock before the transition to Matter. The Appendix 4C shows net operating outflows of $714,000. Staff costs were the largest item at $544,000, followed by $264,000 for Manufacturing and operating costs and $106,000 for administration. The company said outflows included an extra fortnightly Payroll cycle and final payments to two departing staff, and it does not expect the same level of outflows to continue. It also spent $69,000 on capitalised development and $18,000 on research and development.

Funding and dilution

Tranche 2 of a Placement announced in April 2026 was completed on 15 July, after Shareholder approval on 29 June. A total of 204.5 million shares were issued at $0.004, raising $818,057. Total proceeds across both tranches were about $1.56 million before costs. In the 4C, the company noted its capacity to issue further securities under Listing Rules 7.1 and 7.1A. This suggests further dilution is likely while the Matter range moves towards launch.

Risks and upcoming events

The smart home market is crowded, and large global brands are also adopting Matter. Zimi's main risks are delays to certification or production, how well retail sell-through performs once the range launches, and the cost and dilution of further raisings. On 7 October Zimi appointed Simon Gennari as independent non-executive chair. He will stand for election at the annual general meeting, scheduled for 9:00am (WST) on Friday 27 November 2026 in North Perth and online. Shareholders will also vote on director elections and the ratification of shares issued to a supplier.