Selling Archemy units is only a short term sugar hit as we can see with this financial year. As you say, when we sell the units, the customer then gets the substantial contract revenues, not AL3. Their investor presentations indicate for a typical $2M Archemy unit, ongoing $150K software licensing, $50K maintenance and $50K technical support. So around $250K per year in revenue.
Hence need to sell a significant number of $2M Archemy units to cover operating costs. However the benefit is this becomes a permanent income stream vs ongoing bidding for contract work. Given current overheads plus the increased overheads with the US set up, probably need to sell more than 40 Archemy units to be in the range to become profitable. That's still a lot of units and will take a while to achieve.
Whilst they have discussed doing contract manufacturing as part of the path for proof of concept to drive Archemy unit sales, suspect in the next few years they might be bidding for more US defence contract work. As we saw with the submarine parts contract, these can be very high value contracts. Expect this will be required for a while to move business to cash flow positive whilst they pursue more Archemy unit sales.
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