On the 20th September 2020 CardieX announced the commercial...

On the 20th September 2020 CardieX announced the commercial partnership agreement with Andon to produce the Conneqt Pulse.
I was just reading over the details of that announcement again ( key commercial terms below ). Interestingly Andon have to buy the CBP chip from us ( aka secret sauce ), I had forgotten that.

The last quarterly had the following statement in regards $344K spent on product development and operating costs, IMO inferring some of the spend was on new product ( ie. not Xcel and not R&D, therefore Pulse ), but there is no break down given. I'm hoping we were paying for CBP chips ( if we hadn't already ) and we may see sales to Andon ( which would have been really confusing without this insight ! ) in this quarterly.

During the quarter, CardieX spent $344k on product development and operating costs on new and existing products. Research and development expenditure totalled $839k, primarily due to ongoing costs involved in developing the CONNEQT Pulse and CONNEQT Band devices.


Material Terms in Andon Contract

The agreement is between Andon Health Co. Ltd and 100% CardieX Limited wholly owned subsidiary, ATCOR Medical Pty Ltd;

• Intellectual property ownership is explicitly retained by ATCOR as the sole and exclusive owner of all intellectual property rights related to ATCOR technology and ATCOR BPM;

• ATCOR has the sole exclusive right to distribute the product in ANY territory;

• The agreement has a term of three (3) years and can be extended or renewed upon the written agreement of both parties;

• Terms of payment by ATCOR to Andon are generally based around milestones of the product development and FDA clearance and this will revert on completion of the FDA clearance to a per unit payment to Andon to produce product for ATCOR’s inventory and sales distribution. The total budgeted development costs are material however each milestone payment individually is not material in the company’s opinion material;

• ATCOR will sell and supply to Andon its CBP Chip that will be used as part of the production process of the new ATCOR Pulse device.