Revenue can actually be estimated on that example.That's the...

Revenue can actually be estimated on that example.

That's the best information that investors have at the moment with regards to sales metrics. So If they had gone with the WAAS model then they would have achieved the same result but payment would have happened over the life of the first project or one and a half years (550 days detailed in their presentation). The upside would only kick in on future projects. Also $500k for 5 machines indicates a sale price of $100k per unit.

The risk is that they supply the machines and there isn't enough work to pay back the profit they originally would have achieved up front, so choosing the right customers would be key.

Let's say they are successful in selling 40 machines, which would be an amazing result taking into account the number of units they have sold in the past 5 years. Let's also assume that all the units were fully utilised as per the example they have given us, which equated to $500k for 5 units and payback using the WAAS model would be over 1.5 years. That would then equate to $335k annually for 5 units or $2.7m annually for 40 units, which is their target over the next 12 months. That is assuming everything goes to plan and there are no hiccups along the way. So we have of goal of achieving $2.7m in sales over the next 1-2 years and the market has valued the company at $40m.