Champion effort all, really helpful stuff trying to get a handle...

Champion effort all, really helpful stuff trying to get a handle on this company.

My concern has always been (communications aside) the limits of manufacturing. That is, manufacturing is potentially a slow burner and capital intensive, as you hit capacity and expand as targets get hit. Clearly the EV market is going to move fast and being small, I always saw size and an inability to meet potential demand as RFTs main limit to wild valuations even if we created products which captivated the market.

I feel now that this business is better understood as one that licenses out its innovations to the bigger players, and then sells a key component of the tech being licensed. The question is whether the market will pay decent coin for the licensing, or whether we are only going to be making dollars from manufacturing the components needed for the tech being adopted.

Another question as Suki raised is IP protection, hopefully the tech is complicated enough and so constantly evolving that players will only want to deal with the originator.

If this understanding is even half correct, I can see a scenario where we are hitting $3m NPAT by FY18 and commanding a PE of at least 30. If correct on there being some ticket clipping dollars in licensing as well, that estimate is mega conservative.