Ann: Manufacturing Agreement with Fenda Technology for CONNEQT, page-36

Hi all - remember the most valuable IP is in the algorithms, which do not sit on the devices. The algorithms will live in Arty Cloud, and the greatest risk would be poor cybersecurity controls on the Arty Cloud. My understanding is there's nothing special about the devices and the components in the devices - these individual components are all made by other companies who own the IP. Cardiex owns the product, which is the composition of these components into a functional device. Other companies can copy this assembly or design, and the software on the device (but no in the cloud). I can see the on-device metrics being copied, but not the premium ones in the cloud, which people pay for.

My view is China is worth the risk on this particular venture only because the device is decoupled from the main revenue source (Arty Cloud). The device may get copied, but the premium features won't. China has a large aging population of which a significant amount can afford the premium service. The three year deal is good and gives an option to shift out if required.