I agree @fcmaster26

I've emailed Mal and will report back with what he says.

ugh, yeah I tend to place IR folk right up there with RE agents and brokers :)

(no offense to those in the industry -- there are very notable exceptions to the rule! Also, people in glass houses etc etc)

Anyway, the communication with Mal is as follows:

I was hoping you could clarify whether these contracts are entirely fixed priced for the contract period. Also, is the contract with Siemens Korea also for a 5 year term?

As per all our Aura Ai-X contracts there is a supply contract and a service contract for a period, some 5 years some shorter some longer it does depend on the region and customer. The key is Aura Ai-X has a recurring and data support embedded function. Does that clarify, obviously I can’t break the contract down in detail 

Thanks Mal -- just for the avoidance of any doubt, the US$0.7m contract announced today includes both the supply AND service components? And that is the total amount receivable under the contract length.

Correct it's a comprehensive contract supply and service which includes support. The reason it is so critical to us is the future potential and the success of Ai-X

@fcmaster26 don't feel too bad I had the same response as you last week. But who can refuse a request from the smiling assassin @Strawman!

So from this we can assume that the upgrade and support contract from the previous airport announcements are pretty small. As I am thinking the circumference of a solar farm is probably slightly larger than an airport so we get $0.7 vs 0.5m. In this case the $0.7m also has the supply component embedded (maybe the last airport one did too?).

I am a bit confused on why they are making such a fuss about the recurring revenue component given that it appears to be relatively modest. I may be simple but to me the attractiveness of ARR is that you know a lot of what future years numbers will be and you are not as susceptible to year to year variation in contract wins. I don't really see that occurring hear as it looks like the recurring revenue here is probably only $100-150K over 5 years. So $20-25K/yr, which, interestingly, corresponds to a number they mentioned in the last results webinar - where the CFO I think said that the recurring comp was around $20000/yr per system. My question mark when I heard it was whether multiple systems make up each install, but it now looks like they don't.

I am actually a bit underwhelmed.

I guess its good that they are getting new contracts and it looks like Aura Ai-X has a good future and does it make any difference if they win 1 x $10m contract or 10 x $1m contracts?

Yeah I get the sense these announcements are more about saying "look, our new product is getting some early traction and with some notable partner firms too".

We need to see a lot more though, but hopefully each new install provides some important social proof and helps open doors to new customers.