Ann: Significant Cash Receipt and Updates on Guidance and Funding, page-106

Well the UAE didnt pay because we couldnt physically ship the products into country, nor could they get onto bases for performance evaluation given military force lockdowns or administrative issues with government authorisation for payments. Post these logistics issues being sorted, have not heard or we have not been told, of any performance issues with this contract, in fact, the total contract value has been increased by USD17m and the goods have been accepted as per contractual guidelines as to performance. Anything in terms of performance issues impacting delivery schedules is pure conjecture. From an EOS announcement.

Defence Systems received first payment from customer on major overseas contract
Total cash receipts from Defence customers during the first half were $101.1 million, of which $30
million was payment from a single customer on a major overseas contract. The performance of the
contract is strong with the first two batches of systems (29 Remote Weapon Systems in total)
integrated, tested and delivered to the customer. Subsequent to 30 June 2021, Batches 3 and 4 have
passed customer acceptance testing and are awaiting delivery. Systems integration has begun with
Batch 5 and the customer has received additional staff operational training.
The Company has approximately $100 million of contract assets positioned near the customer
delivery point, ready for delivery and conversion to cash. This is a reduction of $30 million in the
contract asset following deliveries achieved and cash payments made by the customer in the first half
of 2021. The Company and the customer have agreed amendments to the head contract to increase
the contract value by US$17 million from US$316 million to US$333 million, reflecting a revised scope
of work. The agreed amendments also reset the program delivery schedule going forward. The
Company will submit invoices under the amended contract in September, and the conversion of $100
million of investment from contract asset to cash will occur in H2 2021