Elsight (ASX: ELS) has hit its first performance milestone after achieving aggregate revenues of A$1 million, while reporting at the same time it had collared a distribution agreement with DiPiO Systems.
The performance milestone was outlined in the company’s prospectus when it listed on the ASX in June last year.
BDO Israel carried out an audit of Elsight’s sales data and deemed the milestone had been achieved.
“The triggering of this milestone in the first eligibility period highlights the focus of management to quickly drive and grow revenue,” Elsight’s board stated.
As a result of achieving the milestone, the company’s founders including chief executive officer Nir Gabay and chief technology officer Roee Kashi are due their class A performance options amounting to 10 million.
However, both Mr Gabay and Mr Kashi have agreed not to exercise their performance options until either 8 June 2019 or when the company achieves its second milestone – whichever comes first.
Meanwhile, Elsight has reported a 51% increase in unaudited sales revenue of US$374,000 for the June 2018 quarter, compared to the same period in 2017.
The company expects its overall revenue for 2018 is on track to exceed US$3 million.
Driving the revenue growth was mounting client orders, with Elsight reporting Maxtech Networks commissioning the largest order of the company’s secure video transmission solutions.
In addition to its positive revenue news, Elsight has obtained a distribution agreement with DiPiO Systems.
As part of the agreement, DiPiO has appointed Elsight as the global distributor for its products. Elsight will act as an agent or distributor and receive commissions on any DiPiO product sales.
DiPiO has developed push-to-talk technology which enables real-time calls over GSM and WiFi mediums.
The company’s technology also allows real time instant messaging, file sharing, alerts, location tracking and monitoring of groups and individuals.
Elsight’s board stated the company’s strategy for the distribution deal was to supply its clients with additional products and boost its sales revenues.
Elsight has created a technology that supports video capturing, recording and transmission across a “highly secure” platform.
The technology has been designed for use in sophisticated intelligence gathering environments where security against interception and hacking is paramount.
Elsight’s clients come from a variety of sectors including defence, homeland and industrial security, first responders, health care and broadcasting.
By midday, Elsight’s share price had dipped 5.19% to A$0.64.