Drosrite Payments should start coming in, this month Payment Schedule under DROSRITE™ Contract
As previously announced by the Company on October 4, 2022, an additional payment of approximately $682,000 (US$0.5 million) was received under the Company’s DROSRITE™ contract. At December 31, 2022, a balance of approximately $12.8 million (US$9.4 million) was owed to the Company under the DROSRITE™ contract.
An initial off-site facility has been commissioned by the end user of the DROSRITE™ systems and is fully operational since April 2022. The construction of the on-site facility, using DROSRITE™ systems, has begun, and the Company has agreed, following discussions with its customer and its financing partners, to revise the payment schedule with its customer while it is completing its additional financing for the on-site facility. As a result of the strong relationship developed with the customer, the Company believes it was in its best interests to support its customer. The revised payment schedule provides for the payment of US$1.5 million in the coming weeks, followed by US$6.2 million to be paid on a monthly basis over a period of six months commencing in April 2023, with the balance to be paid at a later date to better reflect the timing of need and usage.