The new design moves the seals from the moving rotor tips to the sides of the new peanut shaped rotor. The rotor tip is the weak link in the engine design, and the focus of much of Mazda's R&D trying to get the rotary to work. The biggest break through for Mazda was figuring out how to move the ports to the side, so the rotor tip and seal don't have to move across the ports. The new layout makes the seals stationary and on the sides of the peanut shaped rotor. So they don't move across the ports. It also has a much better combustion chamber shape. That is another weak point of the Mazda version. Poor combustion chamber shape means poor combustion, resulting in poor fuel efficiency and emissions issues. The Mazda design does better when turbo charged, as that helps combustion by raising the actual compression ratio and speeding fuel burn.
If you notice, the inside of the peanut shaped rotor is finned, and air is allowed through it to cool it. The current versions of this motor I have seen are air cooled, but it is likely possible to water cool it.
It may not pan out, but it is cool if they can make it work once scaled up. The small engines they are currently building would nicely power a go-kart or a large scale drone. A little bigger and motorcycle here I come.