Post by
CF105 on Jun 29, 2023 8:22am
Re: $1.4 million USD in license sales ($1.86 million CDN)
Nice to see. Management was prudently expecting a significant drop in this category this year because of the size of last year's license orders.
In a typical year, this number would be $2 million USD to $3 million USD or so. Last year's $9.1 million CDN was a very welcome aberration, record-breaking for reasons that were never made completely clear although supply chain issues were thought to be behind it.
KRC's report put out earlier this month, working with the available data, predicted license sales of virtually zero for 2023. License sales of $1.5 million CDN has been predicted for 2024.
KRC also predicted a loss for 2023 of $3,232 CDN mostly due to the late start in Edge sales. Today's order announcement lops off more than half.
License revenues have the highest profit margin of all FLYHT products, something like 85%.
Follow-up orders in a given year have occurred a couple of times in the past - always smaller, of course. Touch-up quantities. Perhaps we'll see something more in Q4.
At this late date, it is doubtful that any of this revenue will be reported in Q2. The sale announced in May of 2022 came in as revenue in Q's 2, 3 and 4 in 2022. This revenue will probably appear in Q's 3 and 4.