Streamlines Financial Structure and Provides Additional Growth Opportunities
In
"This amended agreement provides exactEarth with a reduced and simplified cost structure for our Satellite-AIS data services going forward," said
Key Terms of A&R SABA
Table 1 below provides a summary of the major changes from the SABA to the A&R SABA.
Key Term Element | SABA ( | A&R SABA ( |
Fixed Payment to L3Harris | USD | USD |
SAIS Revenue Share to | 40% revenue share on 1st USD 33% revenue share on annual SAIS | No revenue share on 1st USD 30% revenue share on annual SAIS |
SAIS Revenue Share from | 18% of L3Harris SAIS data | No revenue share from L3Harris. |
Revenue Minimums | Defined minimums to be achieved | Requirement deleted. |
Exclusive Market Territory | L3Harris: exactEarth: Rest of world | No change in exclusive market No territory restrictions for AIS |
Use of Excess Satellite Payload | Parties to negotiate terms and | No change in terms for exactEarth- L3Harris free to initiate services |
*Infrastructure Fee and Revenue Share amendments are effective |
Fixed Fees and Revenue Shares
The parties agree that full deployment of the system has been achieved and that initial operational capacity ("IOC") has occurred.
The fixed fee of USD
Under the SABA, exactEarth paid L3Harris a quarterly revenue share amount of 40% of SAIS data revenues and L3Harris paid exactEarth an 18% share of L3Harris SAIS data revenues. Under the A&R SABA, exactEarth will pay a 30% share of SAIS data revenues for the portion of exactEarth annual SAIS data revenue which is in excess of USD
Under the SABA both parties were subject to achieving defined minimum revenue levels for SAIS product revenues. Under the A&R SABA this requirement has been removed.
Exclusive Market Territory
Under the prior SABA agreement, exclusive market territories were defined with respect to AIS data services and for AIS Analytics. Under the A&R SABA the exclusive market territories for AIS data services remain the same but the territory restrictions are removed for AIS Analytics so that neither Party is restricted by territorial limitations in the sale of AIS Analytics products.
Use of Excess Satellite Payload Capacity
This refers to the use of Satellite Payload capacity, which is not utilized to provide the SAIS capability, in order to implement other services. The old SABA called for the parties to negotiate terms with respect to any such new service which would utilize Excess Satellite Payload Capacity and L3Harris had reserved 10% of Excess Satellite Payload Capacity for its use. Under the A&R SABA, L3Harris has the right to utilize all Excess Satellite Payload Capacity for its own uses without any payments to exactEarth providing that such use does not impact the SAIS service level performance. exactEarth also has the right to bring forward new service concepts and negotiate terms with L3Harris providing that there is Excess Satellite Payload Capacity available at that time.
Background on the exactEarth
Originally, on
exactEarth's Second-Generation Constellation, exactView RT, collects information across the entire maritime frequency band and provides real-time delivery of the collected maritime information on a global scale. Among other things, under the A&R SABA, L3Harris continues to have the exclusive right to commercialize SAIS data produced by exactView RT to the
About exactEarth Ltd.
exactEarth is a leading provider of global maritime vessel data for ship tracking and maritime situational awareness solutions. Since its formation in 2009, exactEarth has pioneered a powerful new method of maritime surveillance called Satellite AIS and has delivered to its clients a view of maritime behaviours across all regions of the world's oceans unrestricted by terrestrial limitations. exactEarth's second-generation constellation, exactView RT, securely relays satellite-detected AIS vessel signals from any location on the earth's surface to the ground in seconds – thus enabling global real-time vessel tracking. This unique capability consists of 58 advanced satellite payloads designed and built by L3Harris Technologies, Inc. under agreement with exactEarth and that are hosted onboard the Iridium NEXT constellation of satellites. www.exactearth.com
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements may include financial and other projections, as well as statements regarding exactEarth's future plans, our ability to continue as a going concern, objectives or economic performance, or the assumptions underlying any of the foregoing, including statements regarding, among other things, expectations of our exactView RT offering relative to competitors, financial impact of the A&R SABA, expectations of the exactView RT capabilities driving growth, growth opportunities for the Company in the maritime information services market and the cost and revenue share in connection with the Harris Agreement. exactEarth uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by exactEarth in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors exactEarth believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to exactEarth's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause exactEarth's actual results, historical financial statements, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of exactEarth's customers; the competition exactEarth faces in its industry and/or marketplace; the further delayed launch of satellites; the reduced scope of significant existing contracts; and the possibility of technical, logistical or planning issues in connection with the deployment of exactEarth's products or services.
SOURCE exactEarth Ltd.
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