25th January 2022 - Renewal of Supplier Agreement with Tritium
09th February 2022 - Product Purchase Orders from Tritium Pty Ltd (20 million USD = 27,870,000 AUD going by the exchange rate on the date of announcement). "The orders are scheduled to be delivered before the end of 2022 (calendar year) and are binding purchase orders."
28/02/2022 - Half-Year Report for the first half of FY2022 reports revenues of AUD 6.5 million (note this includes no income from either of the above contracts ^). 28/09/2022 - Tritium Delivery Update informs the market that "Whilst part of the order has been fulfilled, the entirety of the order is now scheduled to be delivered before the end of 2023 (calendar year)." 30/09/2022 - Full-Year Results for FY2022 report revenues of AUD 16.3 million.
^ Based on these three reports/announcements, it is reasonable to assume that if 6.5 million of the second half revenue was re-occurring revenue (matching that earned in the first half before the contracts existed), then in the second half of FY22 it is likely RFT only supplied Tritium with around AUD 3.5 million worth of product out of the contracts value of 27,870,000. Thus leaving a further AUD 24 million worth of product to be delivered.
16th November 2022 - Product Purchase Orders from i-charging (22 million USD = 32,654,600 AUD going by the exchange rate on the date of announcement). "The orders are expected to be fulfilled before the end of 2023 (calendar year). This marks the start of what both our companies regard as a long-term partnership."
27/02/2023 - Half-Year Report for the first half of FY2023 reports revenues of AUD 19.26 million (+ 13 million AUD on our earlier agreed-based rate of recurring revenue (6.5 million AUD) before these contracts were announced).
So, what do we know?
We know that RFT has total supply contracts (for product to be delivered) to the value of AUD $60,524,600.00 (based on USD / AUD exchange rates on the date of the announcements). And we can estimate that besides their usual recurring revenues, they have delivered around AUD $16,500,000.00 (3.5 mill + 13.5 mill).
This would only lead any wise and understanding investor to assume that RFT still has more than AUD 44 million worth of product to deliver for these outstanding orders.
Anyone suggesting RFT has filled any of these orders or nearly filled any is purely speculating and not looking at the ACTUAL NUMBERS we've been presented with such as those above ^.
Also, the key thing I'm taking away here is not even in the numbers. It's in the fact that RFT has a clear, ongoing relationship with Tritium and is developing relationships with other customers i.e. i-Charging.
"This marks the start of what both our companies regard as a long-term partnership."
As for the Tritium supply agreement, I believe any Product Purchase Order supersedes such an agreement. Obviously, if we have a Product Purchase Order they are still contracted to buy the product. Then, all we have to do is fill this order to the best of our abilities with quality products and Tritium will order again if they need more.
As long as electric vehicle charger installations are increasing globally, and RFT is providing a quality product, RFT's revenues will also increase.
As for this statement taken from the FY23 First-Half Report: "The customised 'high-voltage input rectifier' project development is on track to provide prototypes to the customer in mid-2023. The customer requires production to commence in early 2024. Our research and development team is in the early stages of investigating a customised liquid-cooled rectifier module development, once an agreement with the customer is signed, the project will commence in earnest."
^ It clearly states that "The customer requires production to commence in early 2024." This statement excludes it from having any impact on our current purchase orders which are both stated to be aiming for fulfillment by the end of calendar year 2023. It could be a new customer wanting a new product, or an existing customer wanting a new product once current orders are fulfilled hence the 2024 commencement goal.
Personally, I doubt RFT will successfully fill both our outstanding orders by the end of the calendar year 2023. However, I think RFT is in an environment and such a small company where the clients who have put in such large orders will understand and appreciate RFT's efforts to ramp up production and stick with us. Adding to that once again is the quality product we deliver and RFT's ability to form long-lasting relationships evident by the long relationship RFT has had with Tritium.
(20min delay)