Question on royalty revenue and licensing Licensing and royaly...

Question on royalty revenue and licensing

Licensing and royaly percentage on saving on each application

Big airlines will be fixed contracts - United, Delta, QANTAS

Small airlines will be percentage on saving on time

Sensors would be fitted during hot spot inspection cycle. Ramp up period and adoption cycle would see payments scale up with that cycle.

OEM or operator model - Its an operator driven model, mainly with retrofit situations.

At manufacture level when Delta orders aircraft they fit exactly what they want at manufacture. Its a good time for SMS to talk about cashflow at order time. Not up to Boeing, up to the operator to agree on what they want and what to pay for.

Embraer is ahead and boeing is catching up very quickly with Delta. 2nd in line to Embraer. Boeing in the identification stage. Airbus will quickly come up to speed after signing of upcoming agreement.

More sense to keep as operator driven revenue model