An afterthought is the Woodside deal presumably means that other revenue could be higher this year as they will fund extra R and D. So other revenue, which has been running at $1 m pa as you assume, could well be higher this year. If we assume an extra $1 million r and D (a guess), then on my numbers total revenue could be $9.3m to $14m, compared with $8.2m last year or up 13.4% to 70%.
It is worth adding that the new Director Elizabeth Aris has extensive US experience and it would seem from questions and comments that they are looking to tap into funding from the US. I would suspect more by way of an alliance. A US listing is too expensive, the low share price makes a placement unattractive and the convertible note was a one off replacement for the previous funding. How they fund growth is a key question as on my numbering they will certainly be loss making for a couple of years even with 70% pa growth in revenue.
They now have a range of lighting options they can offer clients from cheaper to more expensive (see slide 19) and Sam confirmed that the deal with Origin Energy opens up the SME market, as they have been concentrating on larger corporates with multiple sites. They certainly have an impressive client list and quoted having multiple sites with some of them so they are not just single sites. Though they did comment that site managers often choose the cheap option with short term savings as they are looking only at this year's budget. So the challenge is to sell Vivid's more expensive options with longer term savings by getting access to the right decision maker. The CFO might understand the long run benefits, but usually do not deal with lighting!!
