hey al, I agree with your summation if you include all of the anns for the last year. What I'm saying is, there WERE broken promises, over stated predictions, anns devoid of new information (ie "Fluff") and CRs that raised funds but did nothing for investors like you and me !!
However, since the Nov meeting I see a significant change in direction.
I've said this before, and will repeat:
I went to the meeting ready to play merry hell with questions.
The thing is, a new strategy based on INCOME was presented and it made sense to me as a businessman.
Well managed, income brings profit. After months os inaction, our company provided me with a plan that I could believe in to pvovide income and profit !!
Also, to cut costs, projects that could not bring income soon we shelved. Staff was cut to reduce overheads, which put more pressure on staff members, particularly
in admin and technical.
At the moment I endorse the ongoing commitment to strategy. Unless I'm missing or over-looking something, the anns post Nov meeting are being fulfilled. I'm pretty sure the team undertook to take the new strategy to market and therefore to the US. This is well underway and it seems things are going well. I expect something by way of ann over the next week or so and a more comprehensive report around end Jan/early Feb.
If my faith in the plan is not fulfilled, I will be disappointed and will take a loss. I won't blame anyone personally, as I took the risk.
But, in the process, management will know I'm around.
Sorry mate, after all that, I'll see what I can do to address your questions.....
Where do IOT fit in?
My understanding:
Initially the arrangement between IOT and AEE was a straight manufacturing agreement. That's why any critical software (such as Facial Recognition) was going to be loaded in Sydney. I agreed with that concept from a software security point of view, but was concerned about the cost and time delay on deliveries.
There was a meeting at AEE which was reported on, but very little detail was provided. At the November meeting shareholders were advised that the arrangement had been upgraded from being a manufacturing agreement to a "Partnership" agreement.
Obviously I didn't see the contract but a partnership involves a much more open arrangement with a much higher level of disclosure from both sides, covered by contractually bound confidentiality.
Usually both entities in a Partnership bring significant benefit to the table.
I'm summarising here:
What does IOT bring to the table ? 2 significant advantages for AEE.
A licencing agreement for Agnosto Facial Recognition which is far broader in it's capability that just drones. Think border security, policing, military, ..... the list goes on.
So, AEE can utilise Agnosto in product they already have, or develop, for a licencing fee. This is IMO, very important for the ongoing IOT financial position as licence fees basically come in as nett profit.
Secondly, AEE have no market position in USA and IOT already has an office in the US, relationships for sales and marketing and the desire to sell product rather than develop product, as per the new business plan.
What does AEE bring to the table?
A state of the art production facility with product development ideas for Roame, a range of product that IOT can sell alongside IOTs product and the capability to direct ship to US market from factory.
The capability to iron out product certification quickly, particularly when different countries have different certification requirements.
And, as time goes by, more product for IOT to sell in their selected markets.
A little clarification would be appreciated on your question regarding "other companies". I will presume you are asking if this business model is successful for other companies.. ?
Emphatically, yes. For almost my entire 40 year career in business I was involved with companies that both manufactured product and also sold product under licence or distributor arrangements.
I hope I have comprehended the questions you ask. Please let me know if I have misunderstood.
Please understand, whilst I have had face to face conversations and email contact with IOT management, those discussions have entirely been clarification on anns.
Cheers
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