Harvest Tech gets additional orders from prominent Five-Eyes customer, expects more in 2024

Remote tech provider Harvest Technology Group Limited (ASX: HTG) has confirmed the reception of second and third orders for its Nodestream technology, totalling approximately $380k, from a prominent Five-Eyes defence customer. The Five-Eyes alliance includes Australia, New Zealand, the UK, the US, and Canada. Notably, the entire amount has been received upfront, underlining the confidence in Harvest’s offerings.

These orders mark the continuation of Harvest’s Nodestream technology deployment, focusing on ultra-low-bandwidth, high-quality secure communication solutions for the customer’s network and semi-autonomous field assets. The success of this deployment reinforces Harvest’s credibility and the value of its technology in defence applications. It also highlights the Perth-based company’s prowess in meeting the requirements for reliable and ultra-secure communications in sensitive and remote locations, particularly in the management of critical assets.

Harvest’s Chief Operating Officer, Linda Shields said, “The opportunity to work collaboratively and globally within the Five-Eyes defence network is very exciting for us and demonstrates a demand for the capabilities we offer. As a small team, we work tirelessly to meet the needs of our customers by consistently delivering better performance, usability and unparalleled reliability, and this is reflected in the acceptance of our technology. We look forward to growing our relationships in the defence sector through 2024 and beyond.”

In addition to these orders, Harvest received new orders amounting to approximately $300k. As outlined in its December operations update, the Company received an order for telemedicine remote kits from its European Union Defence Force (EUDF) customer for its naval fleet. Moreover, orders from two new UK-based offshore services contractors showcase the diversified applications of Harvest’s technology.

Discussing the successful embedment of Nodestream™ Integrated devices into drones trialled with the Japanese Self-Defence Force (JSDF), the Company reported positive feedback. The trial equipment has been purchased, and discussions are underway for future procurement.

Except for the EUDF order, the above-mentioned orders represent initial deployments. Harvest anticipates that each contract footprint will expand as customers implement and utilise the platform across their operations. All orders will be furnished with its new Nodestream Enterprise™ and AVRLive™ Cloud platforms.

In a recent update, the Company shared that it’s getting ready to launch the beta version of Harvest’s first cloud-based solution, called AVRLive™ Cloud. It’s an upgraded version of the original AVRLive™ video streaming tool, with better features. This release is also the first part of “NS2”. The Company combined AVRLive™ with Nodestream™ “NS2” technology, forming a complete “NS2” unified communications platform.

As for the new Five-Eyes defence contract, the technology supply adheres to Harvest’s standard terms and conditions, with full payment received, and delivery expected in March, aligning with subsequent revenue recognition. The contract is legally binding, with no outstanding conditions. Confidentiality obligations prevent the disclosure of the counterparty’s details.

Harvest’s Chief Product Officer, Damiain Brown added, “Acceptance at this level validates our technology, products, and solutions. It gives credence to our vision of realising remote, robotics and autonomy.”

In FY23, Harvest received $1.67m from the Australian Taxation Office as an R&D Tax Incentive Rebate. This, along with its recent contract wins, reaffirms that Harvest is on target, the team is delivering and it is set to further refine its tech for further growth.