RE:This is a SaaS revenuesNot sure this is monthly recurring revenue...that would have been disclosed as such.
I think that this is foot in the door ...a one time contract\fee for specific use...
supply this global technology leader with AR using its brandable ARitize™ app for new technology product demonstrations...without having to pay on going fees so that the company can use it internally without restraint.
Check out "normal pricing" which is about $50 monthly & $500 per year SKU
But it is a great foot in the door as the NR points out as
1)
The company is currently bidding on additional contracts valued at $80,000 which it expects to happen in the next 30-60 days. 2)
both companies are working together to create many new and exciting AR business use cases. So I believe you are incorrent
Aplus wrote: My views on this new contract and what it really means to the long shareholders of NexTech.
The initial contract value is for $35,000 USD and with potential of additional contracts valued at $80,000 USD the total values would be $115,000 USD or
$162076.98 CAD
Because this is an AR contact It's considered a SaaS "Software As A Service" the revenues will be recurring every months.
More detail is required to be able to calculate how much of the money will be part of monthly recurring revenues.
For this example I'll use an easy number of $100,000 from the $162076.98 CAD total. This $100,000 CAD SaaS revenues will adds 10% every month or $1,200,000 CAD over a year.
If NexTech is able to closed this deal before the end of Q2 this contract will add 6.5% to the top line revenues compared to Q1 2020.
The revenues numbers look small but it's a SaaS so it's counted every months.
Aplus