Internet of Things (IoT) solutions company CCP Technologies (ASX: CT1) has secured two new contracts to help diversify its portfolio.
In addition to manufacturing and selling a critical control point monitoring solution for the food industry, CCP is developing a range of advanced IoT solutions for other parties and licencing its IoT platform.
CCP has said it has been tasked with delivering IoT sensors for Cre8tec, a “rodent monitoring equipment manufacturer” and has signed a head agreement for product development with Eposode Data Solutions which includes an initial contract to design and develop a new IoT device for the consumer market.
The company entered a memorandum of understanding (MoU) with Eposode to support business development in August last year, with a subsequent head agreement setting the foundations for the two companies to collaborate in developing services to advance a bilateral business-to-consumer project.
Contract signed for bilateral B2C project
Eposode’s director Stephen Joyce said that since the MoU was signed the pair have been investigating opportunities for the application of IoT across its broad customer base “and beyond”.
“Under the head agreement, we have initially contracted CCP to design and develop a new IoT Sensor to address a total available market of 50 million monitoring points. Eposode plans to sell this new device in combination with the CCP Mobile Application,” said Mr Joyce.
He confirmed that “by using CCP’s contract development services and licensing the CCP platform, we get our B2C IoT device to market quicker. We also recognise CCP’s ability to facilitate ongoing device manufacture and support services which we intend to explore as the project matures.”
According to CCP, the head agreement with Eposode facilitates the formation of multiple contracts to cover a range of “turnkey development, manufacture, support and product management services” which CCP will provide henceforth.
The duo has announced an initial contract to design and develop a new B2C LPWAN IoT Sensor including hardware designs, BOM and firmware to support the prototype.
“Eposode’s proposed product is targeted primarily towards the consumer market and has a different feature set to CCP’s Smart Tags, so we are delighted to support this project,” said CCP Technologies chief executive officer Michael White.
“Based on the obtainable market forecast information provided by Eposode, we estimate CCP would receive in the order of $800,000 per annum in recurring services revenues if Eposode achieve their forecast sales,” he said.
Earlier this week, CCP announced another deal that supplements its incremental growth strategy.
CCP signed a head agreement with Cre8tec, whereby the Singapore-based rodent monitoring company will contract CCP to provide numerous services commencing with hardware and firmware development and related support.
The first contract involves leveraging CCP’s IoT hardware platform to develop a new low-power wide-area network (LPWAN) movement detection sensor for Cre8tec. CCP says it has designed and built a passive infrared (PIR) sensor to communicate on NB-IoT and CatM1 networks to reliably operate in harsh outdoor conditions.
Prototype sensors were delivered this month with discussions having already commenced between CCP and Cre8tec to explore further project work and ongoing support.
“CCP has done a great job for us delivering exactly what we need to launch our new Ratsense product. Our customers require a highly reliable device to capture rodent movement in challenging environments,” said Mr Winston Baptista, managing director of Cre8tec.
The contract to develop the new movement detection sensor included circuit board component selection and testing, antenna and battery optimisation, and final printed circuit board (PCB) layout design and construction.
CCP also developed firmware to optimise battery longevity and maximise communication reliability whilst meeting the operational requirements. One of the first steps in their business relationship has commenced with CCP delivering working prototypes to Cre8tec earlier this month.
“We are confident this new outdoor LPWAN device will extend the market opportunity for us. Based on current sales, we expect to deploy more than 80,000 sensors by 2020,” said Mr Baptista.
Mr White told Small Caps, “These partners are leveraging CCP’s IoT capabilities including hardware design, development and production. If our partners’ forecast sales eventuate, there will be a significant revenue flow-on to CCP through various contract services and platform licencing”.