Clients Partners & Sales Pipeline

Foresense Generates A Secondary Income While Building Brand Loyalty

Trading History And Current Results

The Company has spent the last four years developing and marketing its product and, based on management information provided by the directors, Foresense Technologies Ltd has incurred costs of over AUS$7.2 million from 1 July 2013 to October 2020. Foresense is now at a point where income is projected to be generated from first quarter 2021 (subject to COVID) due to the commencement of global contracts that the company has been negotiating over the last year.

Based on current contract negotiations

Foresense clients will include retail counters, hotels, shopping malls, casinos and stadiums. Australia’s largest outdoor advertising company – oOh!media rolling out of 10,000 sensors. The company has commenced sales with the Australian Lotteries and Newsagents Association, being acknowledged as its Innovation Partner for Australia’s 4000 newsagents, working towards a potential 2000 sensor sales in the future (selling into independent agents) and creating a special National Newsagents app. The company has been recognised by the University of Wollongong

Proof of Concepts

The company has invoiced ‘proof of concepts’ for a major hotel and casino group, and the company is working on the final stages of major contracts in both security and smart city projects of significant size and importance. Foresense Technologies Ltd is currently seeking to patent its algorithms, sensor design and systems technology. Due to the complicated nature of patent applications, it is anticipated that the finalisation of the patent process may take several more months.

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Partners

Foresense Technologies Ltd already has aligned with a number of partner and early adopters across the globe.

Among these is Seagate, the Foresense OEM (original equipment manufacturer) partner, with which Foresense is partnering to deliver the first presence analytics out of the box solution for retailers of any size. Also in the US, other partners and resellers include Aerohive and Xirrus (which will be Foresense analytics partners), Virtual Graffiti, Pacific Digital Signage and Dronealytics.

Foresense is also partnering with existing distribution channels to leverage not only their sales reach, but also their VAR (value added reseller) networks.

Short-term Early Adopters Include:
  • Adelaide Oval and the Adelaide Crows AFL club – other

  • AFL clubs are expected to follow.

  • ANF (4,000 Locations)

Current Proof Of Concepts Include
  • Australian Newsagency Federation (ALNA)– 2000 newsagencies Australia-wide, installations commenced January 2016

  • Radio Rentals

  • Brisbane Convention Centre

  • Adelaide Showground, and;

  • Burbank

  • Pulte Homes (160 Locations)

  • Buick NY (26 Dealerships)

Sales In Pipeline - Australia Include:
  • ALNA (2000-4000 News Agents)

  • Hallmark

  • ooH Digital Outdoor

  • A number of large casino groups in the USA

  • A Large Australian Digital Display Account (10,000 Sensors)

Sales In Pipeline – Us Include:
  • Las Vegas Taxi – Triad Transtech

  • Las Vegas Casino's

  • Associated Grocers (3000 independent grocers)

  • Major Home Security Verticals, and;

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Balancing Risk Versus Rewards

An investment in Foresense carries potential risks, both those specific to Foresense and its business and those general risks associated with investing in Shares. Such risks could have a material adverse impact on Foresense Technologies Ltd business and financial status, as well as its operating financial performance and future prospects. Many circumstances that would incur such risks are beyond the control of Foresense Technologies Ltd, its directors and its management.

General Risks

All enterprise carries risk and general considerations to be aware of include:

  • Possible deterioration of general economic and financial market conditions

  • Share price fluctuation

  • Shareholders may suffer dilution

  • Share trading may not be liquid

  • Possible unfavourable currency movements

  • Possible adverse taxation changes

  • Inability to pay dividends

  • Possible changes in Australian Accounting Standards

  • Non-occurrence of predicted future events

  • Occurrence of force majeure events that impact on global or local economies

Specific Risks To Investment In Foresense

Possible risks specific to Foresense Technologies Ltd as an investment opportunity include:

  • Industry reliance on retail (though Foresense has a diverse approach to sales)

  • The delivery of another data solution to an already crowded analytics environment

  • Reputation or brand damage suffered by Foresense following an incident or series of incidents:

    • An example could be a negative review of the way Foresense sensors have been deployed on social media, which is then shared and goes 'viral'

    • Negative responses to employment practices or treatment of staff, or

    • Breach of environmental regulations or best practice guidelines in manufacturing Foresense products.

  • A reduction in demand for the goods and services supplied by Foresense – as a B2B business, Foresense may find customers that periodically tender for its business, leading to a risk that Foresense may be unsuccessful in retaining its existing contract or keeping the same terms

  • A reduction in material manufacture and/or supply chains, possibly due to shortages of components further down the supply chain or at source

  • An increase in labour costs

  • Foresense being unable to secure or retain relevant licences or certifications to roll out its products in certain regions or outlets (Foresense must comply with a range of laws and regulations in each country in which it sells or produces its products, including on labelling, packaging, fair trading and consumer protection, employment, health and safety, the environment)

  • Foresense being affected negatively by unforeseen regulatory factors

  • A further decrease in the numbers of bricks-andmortar stores – as online shopping continues to have a detrimental effect on the presence in the marketplace of physical locations, there may be fewer outlets available in which to place Foresense products

  • Foresense failing to meet its financial and commercial forecasts

  • Foresense failing to retain existing key management personnel, and/or attracting new such personnel Challenges accessing capital markets or refinancing the business on attractive terms

  • Foresense facing litigation and/or disputes and becoming involved in unforeseen legal proceedings, with a variety of parties, including employees, former employees, community members, consumers, vendors or suppliers

  • Possible outages and failure of Foresense information technology systems, leading to loss of productivity and affecting decision-making and operational processes.

Competition And Significant Investment

While every industry with merit has competition and investment, the Foresense space is an area of significant convergence. Business intelligence and hardware companies are colliding as they race for the ever-growing analytics budgets. And while Foresense sits in both hardware and software camps, and can never completely mitigate the risk of competition, its leadership team is confident that it has conversations with most of Australia’s largest corporations. There are also aggressive PR and marketing plans in place to be rolled out after the next two capital raises.

People

People are always a risk in small companies. Significant amounts of information sit with a limited number of people. Foresense not only has key people insurance policies, but it also manages several key systems and platforms, which help to centralise the information into platforms that everyone internally can use. This, in turn, limits the reliance on any one individual.

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