Fairly recent IPO 2021 at $0.25 per share. Below are some notes I put together from my research on X2M from the Prospectus and latest Annual report 2023.  After my research it's a pass for us, but share main notes below.

X2M is an Australian technology company focused on digitising utility meters and sensors in the APAC region, either by replacing manual, analogue hardware or enabling remote monitoring and control capabilities for next generation ‘smart meters’, managed over the internet. 

Troubled Past

X2M, a technology company with a focus on IoT, traces its roots back to the acquisition of Freestyle in February 2020. Freestyle, incorporated in December 2005, embarked on a journey fueled by approximately $70 million in capital raised between its inception and November 2019.

Freestyle's early years were marked by extensive R&D efforts, including system design, software development, and prototype creation. Despite minimal revenue during its establishment phase, Freestyle gradually gained traction, securing contracts and transitioning towards hardware and software development.

Between 2014 and 2019, Freestyle witnessed significant growth, expanding its customer base across various jurisdictions and enhancing its technology to communicate over diverse networks. However, profitability remained elusive, and complications arose from shareholder-related agreements and disputes.

In April 2019, Freestyle embarked on an IPO journey, backed by promising revenue figures and a strong customer pipeline. However, legal proceedings initiated by disgruntled shareholders halted its IPO plans. The subsequent ASX decision further dampened fundraising prospects, leading to financial constraints and eventual voluntary administration.

Despite Freestyle's challenges, X2M emerged as a beacon of hope, acquiring Freestyle's assets and technology in 2020. X2M's confirmation of no association with the litigating shareholders underscores its commitment to a fresh start.

Key Markets

X2M has established a head office in Melbourne, Australia, with subsidiaries in South Korea, Taiwan and Japan. X2M biggest market is currently South Korea. X2M established an office in Beijing during 2021.

From the Prosectus

 The Company’s core activities in its existing markets are summarised as follows: 

·      In Australia, activities are limited to gas usage monitoring for a utility provider; 

·      In Taiwan, activities cover residential gas and grid pressure monitoring, residential water monitoring and industrial battery monitoring; 

·      In Japan, activities cover residential bottled gas monitoring; and

·      In South Korea, activities cover residential and grid water monitoring. 

From X2M Prospectus Smart Utility Meters and Sensors Enabled by IOT

Smart utility meters typically are water, electricity and gas meters that have communication and built-in logic capability. They enable the collection of data typically to automate manual billing processors, as well as allowing control and configuration of the device. Typical data available from smart utility meters is resource consumption, flow and pressure, valve status and control, configuration and rating data, and event and alarm data. 

IoT sensors, as separate from smart utility meters, allow collection of various measurements that might include pressure, temperature, water and air quality, fire or security alerts or carbon dioxide (CO2) levels and which may be in a single sensor or grouped in a larger multipurpose sensor. IoT sensors might be located in industrial locations or in residential locations. Where measurements are recorded for individual residences, the operation of these devices may be subject to applicable privacy laws to the extent such measurements involve the collection, storage or use of personal information. 

For clarity, whilst the Company’s technology currently collects and stores data including consumption and flow measurements and which may include personal information provided in South Korea, Japan and Taiwan, it collects, gas consumption data but does not collect any personal information for its commercial IoT platform operations in Australia.