With the recent heavy rainfall that led to flooding, causing roads across New South Wales to deteriorate leading to arising concerns due to thousands of potholes appearing, landslide incidents surging and wet weather leaving roads practically undrivable – it was only a matter of time the NSW Government came forward with a solution. Announcing a $500m investment, there are expectations that a critical cash injection will go a long way in repairing and supporting the rain-ravaged roads spanning the state.
SenSen Network Limited (ASX: SNS), an Australian-based tech Company, has become one of the fortunate tech players receiving a slice of the government’s emergency funding having won a Transport for NSW Road Condition Monitoring contract. The win will see SenSen develop a road monitoring solution that aims to improve safety on states’ roads while helping towards the State’s cost-saving efforts.
The contract is valued at $145k and will run through August 2023, which will see SenSen’s tech trialled over 200km worth of roads across NSW in varying conditions.
To achieve a solution that is viable and attractive to customers, the development goal is to produce a cost-effective road condition monitoring and assessment system with the utilisation of low-cost sensors combined with AI technology.
Targeting new markets with the development of new applications for its tech, the Company has been setting its focus on rapid scale with the development of its SenMAP product line. Currently this AI-based asset audit solution is currently used by several cities across the globe and has contributed $150k in revenue throughout the current fiscal period.
Today’s win will accelerate the commercialisation of the SenMAP product line in hopes it leads to additional deployments and recurring revenues – something the Company has projected to have solid future revenue growth, gleefully anticipated and noted in its most recent third quarter report released 31 March 2023.
With the contract adding another feather in SenSen’s cap, some have been plucked recently with patent infringement claims served to the Company by Phillipians-based Angel Group and Angel Australasia Pty Ltd, where currently, the accuracy of such claims from the plaintiff are currently under question and are being investigated by SenSen’s lawyers.
This follows similar proceedings commenced by Angle against the Company here in Australia, where it is also alleged that SenSen infringed on several of its patents. There have also been claims that there are unpaid distributor fees owed to Angel as they were once a formal distributor of the Company’s gaming solutions.
Compromising only a small portion of the tech Company’s operations, in the most recent report, it was stated that the gaming side of the business only contributed a meer 10% towards revenue figures – but to avoid any future cases of litigation and protect themselves against any future claims, the Company has been building its own patent portfolio and claiming rights over its product line.
Despite inflation challenges and the current state of the economy, SenSen saw record cash flows from customers totalling $2.8m during Q3 FY22, driven mainly by the practice of upselling to existing customers who required either additional or complimentary services – a 69% increase over the previous corresponding period.
Also included in the report was net cash from operating activities, which declined to $1.5m. In comparison, cash and cash equivalents came in at $2.5m and $1.7m in unused finance facilities – which slightly declined from the second quarter report where $3.7m in cash and cash equivalents and $2.2m from unused finance facilities was logged.
Trading Desk Assistant at Emerald Financial
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