"Commercially it is expected that the partnership would result...

"Commercially it is expected that the partnership would result in a seven-figure royalty for the initial
12 months of sales commencing FY2021 on launch of the first Mobvoi wearable device “powered by
ATCOR”. This assumes a single device integration at launch. Assuming both growth in unit sales of the
smart-watch as well as the expansion of “powered by ATCOR” into other lines of smart-watches and
other wearable devices, such as smart earbuds, a conservative annual growth rate of 20-30% for the
following four years is reasonable for royalty payments.

A successful commercial launch with Mobvoi also enables CardieX to replicate the same type of
technology partnership model with other OEMs of PPG-based consumer wearables. A reasonable
assumption would be one to two technology partnerships per year, resulting in incremental revenue
streams from royalty payments starting between 12 to 24 months after technology partnership is
launched. Magnitude of royalty payments depends on ASP (average selling price) of the wearable
device, but expectation is between 3-5% of ASP based on current commercial discussions."