31 January 2025
ASX and Media Announcement
Summary for the Quarter Ended 31 December 2024
iCandy Interactive Ltd (ASX: ICI) (“iCandy” or the “Company”) is pleased to provide the quarterly summary of its activities for the quarter ended 31 December 2024 (“Quarter”).
Concluding 2024, iCandy achieved a positive net cash position, reflecting a 105% increase compared to 2023. This underscores its dedication to enhancing shareholder value in driving sustainable growth as the management anticipates a promising year ahead in 2025.
The quarter ended with cash receipts of A$5.87million decreasing by approximately 22%. Despite this, iCandy maintains a healthy operating expenditure of A$ 6.23million, a 8.2% reduction from the previous quarter.
|
Quarter on Quarter |
12-months period ending |
|||||
|
31 Dec 2024 |
30 Sept 2024 |
% chg. |
31 Dec 2024 |
31 Dec 2023 |
% chg. |
|
|
$A’000 |
$A’000 |
$A’000 |
$A’000 |
|||
| Receipt from customers |
5,866 |
7,453 |
-21.29% |
28,299 |
24,266 |
16.62% |
| Others |
22 |
81 |
-72.84% |
404 |
2,393 |
-83.12 |
| Total receipts |
5,888 |
7,534 |
-21.85% |
28,703 |
26,659 |
7.67% |
| Total payments |
(6,236) |
(6,793) |
-8.20% |
(28,190) |
(36,321) |
-22.39 |
| Net cash from / (used in) operating activities |
(348) |
741 |
-146.96% |
513 |
(9,662) |
105.31% |
Several operational matters have taken place during the Quarter.
1. Lemon Sky Studios Added North American Presence
During the 4th Quarter, our subsidiary, Lemon Sky Studios, appointed Mark Meyers to be its Strategic Advisor based out of Los Angeles, United States. Mark is a senior gaming executive operating in the gaming studio space in North American for more than 25 years. He was formerly Head of Disney Gaming Studio. He was also a senior executive at Sony Computer Entertainment where he was a studio general manager at 989 Sports unit. Mark started his career at Midway Games, the creator of Mortal Kombat, NBA Jam and many other top hits in video games.
Mark will be working with Lemon Sky Studios to expand its North American business and to facilitate strategic acquisition of IP rights for co-development of video games, a new business area the Lemon Sky Studios is entering into.
2. Mobile and Web3 Games Segment
The Company’s mobile games development studio, Appxplore, saw continued success this Quarter, with a particularly strong market response to Snaky Cat.
Snaky Cat, a battle royale game with classic snake mechanics, will be officially released globally on the App Store and Google Play on 5 February 2025. With over 1.5 million pre-registrations, the result demonstrates significant player interest in the online multiplayer sector.
CryptantCrab Prime, a Web3.0 game that traces back its root to 2018 has been successfully launched and has maintained its position as one of the top 10 games on Arbitrum during the quarter.
3. zkCandy Layer 2 Chain
During the Quarter, zkCandy, the Layer 2 Ethereum scaling blockchain network for gaming, successfully achieved over 2.4 million wallets created within two weeks during its open-testnet phase. This milestone highlights zkCandy’s growing traction and played a key role in securing funding to expand its network and partnerships, further detailed in subsequent events.
4. Lemon Sky Studios Takes Legal Actions Against Former Executives
During the 4th quarter, Lemon Sky Studios initiated legal proceedings against its former CEO, Mr. Cheng Fei Wong (Fei), and former COO, Mr. Ka King Foong (Ken Foong). This action follows an internal investigation and audit revealing breaches of fiduciary duties, breaches of trust, and other unlawful actions during their tenure, which ended in the 3rd Quarter of 2024.
It was found that Fei and Ken Foong, through their privately held company, Momodica Sdn. Bhd., redirected sub-contracting work from Lemon Sky Studios to Momodica. A lawsuit in the High Court of Malaya in Kuala Lumpur, Malaysia was filed in November of 2024.
Further issues have been identified involving Fei, Ken Foong, and Spiky Things Sdn. Bhd. (operating as Spiky Things Studio), a newly established studio founded by the two individuals. Lemon Sky Studios has filed an additional legal action against Fei, Ken Foong and Spiky Things Studio in the High Court of Malaya in Shah Alam, Malaysia, against the parties for conspiring to unlawfully harm the business of Lemon Sky Studios as well as other unlawful actions.
The Board of iCandy considers these breaches to be a matter of deep concern, and have taken necessary steps to protect the interest of iCandy and Lemon Sky Studios.
A new leadership structure has been put in place at Lemon Sky Studios. The studio continues to secure a robust pipeline of AAA animation and game development contracts, reaffirming its business model of upholding the highest standards of service excellence to its global clientele.
Subsequent events:
We are pleased to share that ZKCandy, iCandy’s Web3 Layer 2 network joint venture, has successfully secured US$4 million in seed funding,demonstrating strong market interest.
The funds raised will be used to further develop ZKCandy’s technology and expand its network of partners. With more than 25 game titles in the pipeline, ZKCandy is preparing for its mainnet launch in the first half of 2025.
Listing Rule 4.7C.1
In accordance with Listing Rule 4.7C.1, a summary of the net operating cash flows for the quarter ended 31 December 2024 are as follows:
Receipts from customers $5,866,000
Interest received $18,000
Government grants and tax incentives $4,000
Payments for:
Product manufacturing and operating costs $418,000
Advertising and marketing $15,000
Leased assets $191,000
Staff costs $3,952,000
Administration and corporate costs $980,000
Interest and other costs of finance paid $4,000
Income taxes paid $676,000
Listing Rule 4.7C.3
In accordance with Listing Rule 4.7C.3 under Item 6 of the Company’s Appendix 4C of the cash flow report for the Quarter, it has been reported that payments to Related Parties are approximately $29,000.
The Company’s Appendix 4C statement is herein attached at the back of this announcement.
This announcement has been authorised by the Board of Directors of iCandy.
— END —
About iCandy Interactive
iCandy Interactive Limited (ASX:ICI) is an award-winning, publicly traded video games company that has been listed on the Australian Securities Exchange since 2016.
With headquarters in Melbourne, Australia, and offices across Malaysia, Singapore, Indonesia, and Germany, we are one of the largest independent game developers in the region. Our team of more than 650 full-time game developers, artists, and engineers has delivered more than 350 mobile, console, PC, and Web 3.0 titles. The Company has worked with some of the biggest names in the business on some of the most widely known titles and iconic franchises in video games history. For more information, please visit our website at https://icandy.io/.
iCandy Group is supported by a strong network of strategic shareholders, including Animoca Brands, Fatfish Group, Baidu, Singtel, SK Square, AIS, IncubateFund, as well as several Australian and international funds.
For more details, please contact: ir@icandy.io
ASX Announcement: https://announcements.asx.com.au/asxpdf/20250131/pdf/06f1j501mkp149.pdf