Ann: First K-TIG Welding as-a-Service (WaaS) Milestone Achieved, page-222

Thanks for the reply and to the other posters who replied too.

I think that's the better scenario that I was hoping for but that raises another question. If the licensees are still purchasing the K-TIG equipment, why was there such a drop in revenue last financial year?

The Prospectus said that because of the shift to the WaaS business model, the revenue was lower but the cost of goods sold was reasonably close to the previous years, usually meaning tighter margins.

So either 1. Were they selling the equipment at a discounted price as part of a licensing package, like when you buy a printer for $80 and the ink cost a fortune. (they can't have done this though because they just announced their first WaaS customer)

or 2. Did they stop selling equipment to customers during the transition of their business model? (This doesn't make sense if the cost of goods sold was the same as previous years though)

If anyone could shed some light, this would be much appreciated.

Thanks