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Ann: JHC agrees to full commercial rollout of HeraCARE, page-47

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    I might just clarify my understanding and what I mean by the final paragraph.

    If I contract with a supplier for 10 units at a licence fee of $10 each, the contract value is $100.

    If those units can generate $5 per year for each licence taken up, the contract value is still $100 to me. The potential upside is $150 with full uptake (licence + use), but that assumes full take up.

    So the value of the contract is the base figure guaranteed. The contract specifies the use fees, but they don't form part of the contract value as they are not guaranteed revenue.

    May also explain the suspension while this was clarified.

    This is maybe a poor analogy, but it's a bit like saying your $10 bet on a horse is worth the value of the payout, but before the race has started.

    It's $10 unless and until the event occurs - in this case the licences being taken up, which are in the contract but are a conditional event.
 
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