NuVodia Partnership, page-2

It's a very significant win as on the webinar today when Mike Lampron was questioned advised they had knocked out an incumbent. Clearly the dynamic duo snavelled from Phillips some 12 months ago are getting traction. I submitted the question today about when will the "jaws" kick in as was happy with Mike's clear and direct answer. 2023 is a consolidation year - they have ramped up the sales and marketing with the new team and have grown the pipeline significantly - he alluded to a 30% to 40% conversion rate. Regardless of the negative cash flow for Q1 he guided positive cash flow for FY 2023. The M7 version of "jaws" is guided to kick in from FY24 - 20% revenue growth, high single digits operating costs. We are on the right side of the currency trade as well with the flight to the US dollar as the FED continues tightening. Each US dollar Mach 7 earns in the US now we get $1.56 aussie. Trend to the SAAS sales as contrasted with capital sales is encouraging as well - on average worth 20% more in dollar value because of the time value of money - Mike said that. Average contract is 5 years so think what the calculation is as follows. 5 year contract paid up front, $1M say. After 5 years at 4% interest rate (assuming no adjustment for inflation) the $1M is worth $1.21M . So instead we will take $242K per year for five years - just my thoughts. What I would like to see, given they have $20M - $25M cash is a significant acquisition that will turbo charge the incremental return on capital. The cash at the moment is "lazy cash" and they know that but at the same time it needs to be exactly the right acquisition. I predict this will occur in the next 18 months.