US$5 royalty is accurate
The big upside comes from new revenue achieved from using the SFI systems which is calculated by:
5% of first US$100/sqm
10% of all revenue >US$100/sqm
The average industry revenue per square mile is US$250. So 5% of US$100 and then 10% of the US$150 per square mile.
The true upside of the SFI model is that companies like EV license the SFI system. So revenue is based on a use by case. Every time EV fly the system SFI generates revenues and it goes to gross profit.
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Ann: EagleView places second large scale order for camera systems, page-26
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