SteveThe Byron Shire Echo wrote a piece last year which...

Steve

The Byron Shire Echo wrote a piece last year which indicated that ERBs had been in SLS NSW storage but ready to install at Brunswick Heads Breakwall, Belongil Beach, Tallow Beach and Lennox Head since June 2022 or possibly longer, but the installation process had dragged out (for a year or more as it turns out) due to various bureaucratic red tape. This information would seem to align with contractual information released by Spectur on 12 February 2021 in which it stated that a contract had been signed with SLS NSW for design, supply and installation of an unspecified number of ERBs within the following 5 months - (ie by October 2021).

The same release indicated that the value of the contract with SLS NSW was for $351,810.80 (in outright purchases) which represented between circa 7% and 8% of annual revenue at the time, but in any case, as the contractual details were released to the market, it was obviously deemed material. Now admittedly it is an inference by me, but as near as I can ascertain, the contract was for (among other things) supply of 35 ERBs. If that's close to the mark, then the unit costs would have been around $10,000 per unit, which is quite a premium compared to most of Spectur's other offerings (although it should be noted that this would have included upfront hardware and engineering revenue as well as ongoing service fee revenue for maintenance, data provision, cloud hosting and camera software access. Given the bureaucratic delays in installation, you may well be correct in assuming that full Spectur access to service fee revenues may well have been compromised, but that would depend on specific terms of the contract which are not available to us shareholders.

The 12 February 2021 release from Spectur is interesting in that it states that "the contract may extend to address installation and services beyond 12 months". While its a bit hard to get a full grip on the implications of that statement, I would presume that Spectur would still be requiring service fee revenue beyond 12 months in order to keep providing maintenance support, data provision, cloud hosting and camera software access to SLS NSW. I do know that when Spectur's "marquis" ERB at Dreamtime Beach almost collapsed into the ocean around Xmas 2022, the Spectur CEO advised me that Spectur was obliged to install ERBs wherever SLS NSW determined, regardless of whether there were misgivings from Spectur about the wisdom of particular site locations, but I think that issue may well have prompted SLS NSW to consider extending existing maintenance and installation arrangements with Spectur to cover off on such exigencies.

I hope this clarifies any ambiguities in my previous post and helps (if necessary) in finessing your back of the envelope calculations.

zeno9