Ann: Acquisition presentation, page-31

I have finally had an opportunity to look through the whole preso and there are a few aspects that bear highlighting.

Blended revenues: Sensera has aspired to own the technology stack from hardware to software to data, and this acquisition goes a long way to achieving this.  Previously, they have generated revenue from non-recurring engineering.  Soon it will be manufacturing but in time there will be revenue coming in from hardware sales and data.  This leads to high margin revenues and recurring revenue opportunities.

Immediate revenue outperformance:  The forecasts in the document are for forward orders only.  The SmartBow/Zoetis partnership alone could generate significant revenue quickly.  Short term target of 500,000 ear tags deployed scaling to 2 million ear tags per year.  Given Zoetis market leadership position in animal health they are in the box seat to execute on this.  This is just ONE of the opportunities that are at the tipping point.

Widening product offering: Location awareness services can be integrated to the current Sensera clients.  Not sure if this will translate to anything but surely having more bullets in the chamber helps with sales.

Higher margin potential with fab:  Margin is potentially higher as Nanotron gets to use Sensera’s fab instead of outsourcing and claiming a smaller clip

Sensera Europe: Nanotron is based in Berlin, so can easily transition to Sensera Europe creating a significant European presence.  

Ultimately, Nanotron is clearly underperforming given its previous investment.  Sensera believes that it can coax the true value of the assets.   I think Sensera has a good chance to do achieve this and with new clients, personnel, revenue and products in the portfolio the acquisition to me shows Sensera is in an improved position than it was before the transaction.