Ann: Q3 FY2023 Trading Update, page-57

The guideline for FY23 was $27.6-29.6M, so it looks like AVA has been trying to settle one or two big contracts on top of the confirmed $27.6M sales. Contracts this big would definetly be ann worthy. We are only 2 weeks away from the end of FY23 and yet nothing has happened. Therefore, it's pretty clear that the revenue for FY23 will be $27.6M, if not less, with a 9% EBITDA margin.

It is still unclear how the management is going to turn $27.6M into $70M and expand the EBITDA margin to 25%+ within 3 years (actually 2.67 years since they mentioned it back in Feb).

I do like many things about this company. I believe AVA will achieve that milestone eventually but not within such a short period of time. It is insanely difficult to triple your sales and profit margin at the same time. If that really happened by Feb.2026, that will be one of the greatest growth stories I've ever seen.

Here are the five things that will make me believe that AVA can pull off this ambitious growth plan:
1. A contract with 100% recuring revenue
2. Multiple IMOD type of deals
3. An Aura-IQ contract that charges the client by length per month
4. New mining projects with Aura-IQ installed before the start of operation
5. A long term system integration partnership/licensing with a major player in this industry, such as Honeywell

AVA will need this kind of major achievements to reach the $70-100M sales with 25%+ EBITDA margin under 3 years of time. Keep accumulating small one time installation contracts under $50k will never expand the EBITDA marging beyond 10%.

Lets see if the new management team could deliver some big juicy contracts within their first 12 months.