Ann: Appendix 4C and Quarterly Update, page-36

Good topic for discussion but I think RL has a point. After 15 to 20 years SMN have slugged it out to reach that level to get the regulators approval to get designated as an AMOC or alternative means of compliance. This simply tells us that our sensors can now be used as an alternative to the existing method of crack detection or NDT, it’s then allows airlines to choose which one they prefer. There is no increase in safety here as we are offering an equal level of detecting fatigue cracks as NDT. However there are an extra two safety benefits gained by using CVM. One is the regulator can choose to have more regular detection checks be carried out because now it only takes 15 min at the gate to do one, so there is an added safety feature. Two the check does not require tear down of structure to access the site for testing so removing human error. Was not this the very thing involved in that plug popping out on the Boeing flight. So by been compliant we do offer extra safety features something RL could lay out in front of that Boeing CEO. All this of course comes with reduce costs thanks to ease of doing a test.