Ann: Response to ASX Aware Letter, page-15

BUD 4C states

"Signed contracts that management forecasts to have aggregated revenues of more than A$69.3M"

What makes up the $69m?
Digicel
Only the Digicel Reseller Agreement carries a minimum sales commitment (which is for
Digicel to procure new sales of at least 1000 Buddy Ohm systems over a three year period in
exchange for exclusivity in specified territories, whose penalty is that such exclusivity right
will be terminated if the minimum sales commitments are not met) which approximately​

equates to a revenue sum of A$20.9 million

This does not however mean that the sales could yet materialise. It may or it may not hit that minimum target and the consequence of not meeting target is that Digicel loses exclusivity - the loss in exclusivity doesn't hurt Digicel if Digicel cannot sell to the degree expected. So can management really forecast this to be included as yet at the outset??
You can only count them if Digicel has to buy all the 1000 Buddy Ohm whether or not they can sell them- i.e Take or Pay contract.

Ingram Micro Canada

that "if the distribution relationship and region performs comparatively to the Caribbean
and Central American market, it is expected to yield more than A$20m in revenue over​

three years to the Company";

This is another forecast based on performance of another region.

No wonder it is not and will not reflect to a great degree in the foreseeable quarters 4Cs as it is 'counting chickens before they are hatched' and as any prospective holder will interpret that the $69m has a very reasonable chance of materialising.

If this was that easy, any company can draw up agreements to include minimum sales commitment and they can go round saying they have locked in so and so much of revenues.

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