Ann: Elsight signed additional contract of US$5.08M, page-25

I thought we should just once agian state a few facts that Yoav has been very clear about in a few of his last presentations. I am confident no capital raises are required.

What we know.,

• Hardware margins - 74-82%
• Data margins - 13-64%
• Cloud software margins - 52-61%
• These are the GROSS numbers . ...
• Ebitda comes after taking of below the line costs
• EBITDA does not scale linearly like revenue
• EBITDA goes up significantly as revenue scales because they can operate this with minimal extra costs.
• Cash flow positive just above the $6.2 Mio revenue point.
• The model is profoundly cashflow positive with significant up front payments and no apparent supply chain issues.
• So they don't NEED to raise capital like DRO needed to .
• DRO had/have other issues . Massive R&D as their product gets superseded . They had some suppiy chain issues and cost issue.
• DRO had to raise for a number of reasons to support their future growth that don't quite confront elsight. They didn't have the capital-light
• model Elsight does.
• DRO took the right approach for their business and look at their success today.
• ELS does not need to raise capital to grow . They may CHOOSE to raise capital at some point if they think they can grow even faster , and that would be quite a signal, becasue who doesn't like a business that wants to turbocharge already stellar growth ?
• Elsight has hardware production capacity to support approxiamtely US$70 mio ($108 AUD) in annual sales to support further orders from existing customers , and additional pipeline growth.
• If we need to raise money because we are testing this sales point ....happy days !!
• Lastely look at the trade terms management managed to put in place ..... could not be any better !

Good Luck to everyone and let's see where we are at Xmas.