Sixth Wave Innovations Inc SIXWF

Sixth Wave Innovations Inc. is a Canada-based nanotechnology company with patented technologies. The Company is focused on the extraction and detection of target substances at the molecular level using specialized molecularly imprinted polymers (MIPs). The Company’s product brands include AMIPs, IXOS and Affinity. The IXOS is a line of extraction polymers formulated for deployment in the gold mining industry. The Affinity system is using its MIPs, which are designed to capture and extract cannabinoids from filtered crude extracts without the use of traditional winterization and distillation. The Company’s patent portfolio covers extensions of the designs for extraction and purification of other critical metals including nickel, cobalt, rare earth elements, and platinum group metals. It also designs, develops and commercializes MIP solutions across a spectrum of industries.

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Sixth Wave Innovations Inc > Sixth Wave Moves IXOS Technology Forward with $50M+ Contract

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Comment by lscfaon Nov 01, 2022 11:06am

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Post# 35063099

RE:RE:RE:Sixth Wave Moves IXOS Technology Forward with $50M+ Contract

Look like revenue from Magnus deal is at most $5 million......

From: Jon Gluckman <jon@sixthwave.com>
Date: November 1, 2022 at 8:44:29 AM MDT
To: Xxxxxxxx
Subject: Re: Shareholder Questions

Xxxxxxxx,

On the equipment side that is probably a fair assessment. However, the IXOS adsorbent is a replaceable and so there is recurring revenue for the life of the mine. The $15-20 is not royalty in that there is no license for the technology it simply reflects the usage life, replacement timeline, and our margins on that vs cost of manufacturing.

For other mines, we do offer a leasing arrangement with support package that includes technical support and replacement of the IXOS. This would be a more conventional recurring revenue model with slightly higher margins for us as we must carry the costs of the inventory of IXOS.

I hope this clarifies things for you.

Jon

On Nov 1, 2022, at 11:20 AM, Xxxxxx wrote:

Hi,

The contract with Magnus Minerals suggests a non-recurring revenue model. Equipment is sold outright and there is no ongoing $15-$20 per oz. revenue royalty. Is this correct? If so, what is the margin on the equipment sale? Some investors might think it is a standard 10% cost plus arrangement.

Xxxxxxxxx

lscfa wrote:

Where-t-f is co. going to get $25 million to build plant to sell to Magnus? Is Magnus going to front the money with deposits?

lscfa wrote:

If co. is contracted to design and provide plant then revenues and gross margin (50%?) are not recurring. Co. will not earn $15-$20 per Oz recurring revenue.