Thanks binbin, it's useful to reflect on the risks here. There...

Thanks binbin, it's useful to reflect on the risks here. There is of course a chance shareprice will flounder for another 6-12 months which is why I have opted for a staged entry. But I also believe tipping point is here and below I'll set out the reasons why.

I don't agree most companies won't use it unless forced to as the below evidence does not support this, or that sales have not been going well since global launch. I have done a breakdown for my own purposes I'm happy to share.

Back in march 2015 investor preso they had 21 sites only in Australia, or upto $1.4 annual saas revenue at current average licence fee. (They state currently average fee per site is 60-80k so I'm using 70)

HOWEVER there is clear evidence the early Australian deals were also less lucrative, or priced cheaper. On 28/5/15 they announced a package of 4 different site sales in Australia (all different bodies/companies) for $120k revenue or average 30k per site. Hence it's clear more recent sales have also been for more money. So perhaps only 700-900k annual SAAS revenue.

One issue they have is with communication. And market updates. This is common for very small businesses as they are focused on sales, and they have moved from announcing individual contract wins to bundled updates, most recently just hidden in annual reports. So let's break down the last two years.

GLOBAL LAUNCH
First global partnership was with odournet in August 15 who only have 40 employees, so roughly same size as EVS

Since then announced sales were
6/10/15 - Thai resources giant
11/2/16 - Indonesian mining company
16/2/16 - nsw mining co
15/3/16 - Thames water trial
12/8/16 - largest Latin American coal mine
15/9/16 - wastewater treatment facility in Spain
15/9/16 - gold mine in Mexico
15/9/16 - Australian iron ore mine
29/9/16 - us regulator trial

But clearly they havnt announced all sales individually. At the 17/10/16 investor presentation they had 41 sites. So from a standing start commencing international sales they sold 20 very diversified international sites in 18 MOUNTHS! It's also important to note these are annual recurring licence fees which are ongoing.

Since then the last 6 months they have been mainly focused on SCALE for the next wave:
- trying to close the larger 'scale' agreements with Thames and USA regulator. These take a lot of time and effort
- selling the consultancy and setting up erm deal. This takes a lot of time and effort. It's no surprise to me this realigning the company phase has slowed individual site sales from their direct team.

What they have been putting in place now is scale and a wider sales pipeline for the next wave of sales:

4/10/16 - HDR agreement has 10000 employees
27/2/17 - sale to Vietnam water utility (more under negotiation)
27/2/17 - USA food manufacturer sale
27/2/17 - Spanish port regulator sale, with negotiations underway with other heavy industry and more sales imminent
27/4/17 - sale of consulting business announced ( would have all spent 3 months prior negotiating this)
27/4/17 - erm deal announced at same time has 4500 employees

Last 3 months no updates - not a surprise either, they have been closing out the erm deal.

So in summary, as at today:
- PROVEN to sell very well globally with smaller sales team and partners
- SAAS revenue up from 700-900k per annum 2 years ago to $3m current, with direct (evs only) pipeline for a further $5m
- big partners have only come onboard last 9 months
- HDR oct/nov 16
- erm : now
- 3 months distraction closing the consulting sale
- now they are set with sales pipeline through partners of upto 15,000 people
- there is a very real need for this, and their tech is world leading.
- I'm sure the qtrly will include further sales updates

And yet they sit at cash backing on a $15m market cap.

Staggering