Ann: FLC procures first Aspiral contracts with ITEST in China, page-48

@wotsits

It can easily be proven that Emefcy hit their milestone #2.  They actually exceeded it by at least 50%.

Revenue in 2016 was $792,424 USD.
This comprised of Israel HaYogev, USVI, Ethopia Ayder Hospital.

In 2017, there were major agreements for:
Ethopia Addis Ababa - $400k USD.
Israel SUBRE - $450k USD.
China Jinzi 6 plants (5900 m3/d) - est. minimum value $1.68 million USD.
There was also some smaller income related to demonstration plants.

With the major agreements I have listed, revenue achieved + future contracted revenue = $3.3 mill USD.
The Jinzi agreement was the trigger.  Those plants have now been built and are operational and have led to further agreements.

Your suspicions regarding the Israeli SUBRE project also appear unfounded, as it is a project backed by financing from the Israel Water Authority.
It is likely though that this project was won because our strong Israeli network of contacts allowed us to get the right meeting to prove the technology.

Retail investors often seem to have the wrong impression when it comes to the achievement of milestone (deferred consideration) shares for vendors.
Milestone shares are part of the valuation of the original company but are delayed until the technology has been proven by hitting set targets, thereby confirming the original value of the company.
Emefcy prior to listing on the ASX had over $21 million AUD invested in its development between 2007 and mid-2015.
Initial consideration for vendors was 65 million shares @ $0.20 = $13 million AUD
Milestone 1 was an additional 22.5 million shares = $4.5 million AUD
Milestone 2 was an additional 22.5 million shares = $4.5 million AUD
Total consideration including milestones was 110 million shares for vendors = $22 million AUD
Considering that the founders, angel investors and VCs had their money invested for a number of years, with milestones they got a value of shares equal to what they had invested years prior.

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The EMC vendor shares had nothing to do with RWL Water.  It would have actually been advantageous to the likes of Ron Lauder and Capital Group if the 2nd milestone had not been reached in time, as their holdings were also diluted by this event.

In terms of guidance, it is my belief that the missed 2017 guidance was down to events caused by politics in South America.  You can clearly see that RWL expected the construction of the Mexican desalination plant to be started in 2017, but some unforseen political challenges to the PPP model in Mexico caused the project to be delayed until 2018.  This led to a minimum of $14 million USD in revenue being missed.  The Venezuela PDVSA project may also have contributed to a delay of revenues.  The difficulty in guidance is that Fluence is dealing with politicians/governments at all levels, banks/financiers, contractors, partners, weather, country stability, etc.  They may secure a firm commitment to build a project, but when that project actually begins construction and revenue can be recognised is down to a number of factors outside of the control of Fluence.  We can see this again with the Cape Town tender in which Nirobox was the leading candidate for a $30 million contract, but the government mismanaged their budget, and did not have the money to allow construction.  Then, after 3 years of drought and on the verge of Day Zero, it rained.  Had that rain not come this year, the government would have had no choice but to find the additional funds for desalination.