I am actually really interested to see how their Altea agreement has gone soo far. This was what they had last year
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1) FrameS business model is $1,252 AUD per dealer for the first year followed by $1,620 AUD for year 2 onwards.
- Currently they signed with Volvo giving them access to 70 dealer with first year revenues ~ $1,252 x 20 (currently signed 20 dealers soo far) = $25,040
- 2nd Year and onwards revenue = ($1,620 x 70) = $113,400 p.a.
2) They have recently signed a distribution and collaboration partnership agreement with Altea to bring $1.7M (AUD) in 3 years. They also attached the distribution agreement for the minimum Altea must sell to maintain the relationship;
- December 2020 - Altea must sell at least $400,000 Vection products
- December 2021 - Altea must sell at least $570,000 Vection products
- December 2022 - Altea must sell at least $730,000 Vection products
Failure to do so means the revision of the agreement. Also, the agreement limits Vection from reaching out to Altea's competitors and asking them to sell Vection products. From what's been announced it is likely that FrameS will likely be part of 50% of the 1.7M sales.
3) In their presentation to launch FrameS globally, they have outlined that FrameS can be used by companies and SMEs.
- For $290 AUD/ per month/ per user this is the Presenter product that can be used by SME's to allow 3D visualisations in VR, model rendering, environment exploration, scene saving etc..
- For $484 AUD/ per month/ per user this is the Enhancer product that would be used by companies who operate in multiple locations with high-performance requirements. It can have up to 6 users connected simultaneously with four 3D models of the same environment.
4) With In-store Furnishing and Fashion, the business model has not been shown clearly as they are still doing PoC. However, $180,000 is in the pipeline for Furnishing and they aim to potentially deploy the solution across 100+ locations. In saying that Furnishing took 7% of Q1 FY20 receipts = $65,000.
5) Logistics business is still in the early stages and thus a rigid business model is not laid out. However, they are currently engaging with Alfacod Group and logistics took 8% of Q1 FY20 receipts = $73,800. I am assuming that came all from the Alfacod Group PoC.
