Member Info for Frix

Hi all.

Happy new year!

Just joined this group (but been on LSE a while now) - as I'd imagine quite a few on here have heard on various grapevines, James Altucher has been speaking about "a mega IPO" around Elon's Starlink company - citing SMT as a "backdoor" entry to a pre IPO holding. I'd be happy to post some links etc. but initially just wanted to see what people here think. I'm not invested in this yet, just doing some poking around.

Thanks,

Frix

Took a break for about 6 weeks now. In a nutshell, have I missed anything? Still holding, but not been following news, boards or even the SP.

Hope everyone is keeping well, health being most important!

but over the last few weeks, the SP of both DVRG and Abingdon Health (ABDX) seem to be converging.

Nah, probably nothing.

?

Morning all.

So the DV interims were just released - which means MS shouldn't be too far along.

Moreover, nice to see the deals and growth that DV are having which, due to the partnership, will show on MS results.

Hope everyone is well.

Frix

Mornings.

What are people's thoughts on this?

So DV have secured a "world first" contract worth about £2.4m of which £200k should be attributed to MSYS most of which will land in the next financial year.

I see this as a nice little revenue injection that hopefully is a bonus to the other work (with the new biz ARR model) they are doing. It looks as though this type of project, whilst a world first, could be repeatable if there is a need. Might be quite lucrative is more contracts can roll in.

Frix

And of course what immediate gain there was has now been eroded. I love AIM. Still...no real bearing on anything, the contracts will come, as will profitablity, then we'll get back towards 0.5p and who knows where from there.

Morning all,

Great news - was happy to read that RNS this morning; good to see that MSYS can pick up contracts "on their own" as I remember a few people rights (or wrongly) said they were too dependent on DVRG.

No information on numbers yet (sure this will come) but hopefully any new business will be annually recurring.

Onwards and upwards, slowly and surely.

Frix

Evening all.

Muggins - yes, that is my expectation too. Ergo, with the radio silence on informing the market either way, it's safe to say that targets are on course to be met. In fact, I wouldn't be at all surprised if we get a notice of a revised revenue target that's higher. More deals are coming in, the chunky 6-fig types (for MW) and we've not yet even taken into account what's happening with STC.

Onwards and hockey-stick upwards I dare say.

Frix

Hi chaps,

Smeeno - I think my favourite Q was 20, or those around the BT because I think we've not really had much exposure/updates to that side of the business aside the fact it's "next" after PD.

I loved the succinct answer to Q42...which could be quite lucrative especially in today's climate.

I do "smell a T-Rat" in how some of the questions are constructed! LOL.

I'd also hazard a guess that c.500 people were on the bridge which suggests only 1 in 10 people actually asked a question. Would have thought a lot more came in but then again, there needs to be some sort of filter. Maybe a mute point.

In short, I'm very happy with progress. :)

Frix

Q41: When will a product listing for Microtox PD be added to Modern Water website?
We still classify them as under development, and will add them when we have the full array of consumables, and pathogens to be detected as part of a catalogue. It is important to understand that we are rolling these units out as we continue to tweak and develop and miniaturise them dynamically

Q42: RNS Number : 9310P, 23 June 2022, indicates · "Skin Trust Club test kit sales for R&D and Business to Government (B2G) - military programs." Have the company had military interest in BT and PD?
Yes

Q43: RNS Number : 7775S, 18 July 2022, CTM but not PD? Will Qatar be using Modern Water equipment for monitoring COVID?
Not for this £1.4m contract, which is only the initial project. However, all units being shipped have the ability to be retrofitted as plug-in units for PD units with over-the-air software updates.

Q44: what were the resolutions that were passed earlier and why did they not happen at this meeting as has been the norm
An AGM has shareholders only voting, either by proxy and by those who attend. Non-shareholders do not attend AGM's and those who do, phusically register to be in attendence. That is not DeepVerge, that is the case on all AGM's. The Presentation is open to all existing and potential shareholders and is promoted openly. Therefore, the 9 resolutions were voted for at the AGM and all results of the voting were published immediately afterwards in an RNS availabel on London Stock Exchange and on our website here
https://polaris.brighterir.com/public/deepverge_plc/news/rns/story/rnl0lnw

Q45: this all sounds very good but i hope you're going to start telling us why we should continue to invest in a company that seems to have a huge issue in increasing its share value
We have absolutely no control over the share price. We have outlined in the presentation what has been achieved and what is coming in the future and the decisions to invest must be based on our ability to deliver continued growth for the long term. As a large shareholder, as with management and team members of DeepVerge, we are as frustrated as everyone else, but committed to keep building a great company over the next few years

Q46: thanks for your update can we have the next AGM in person?
You were welcome to be at this one and shareholders did attend

Q47: How long before Deepverge anticipates substantial sales for Modern Water in North America ?
We have been selling equipment and consumables in the US for decades. However, we have seen a very big uptick in demand and have been hiring both business development and applications engineers to meet the demand in North America. See the open positions in the careers page here https://www.deepverge.com/careers/

Q48: sorry microtox BT
Answer is given in question 20

Q36: RNS Number : 4721S, 17 March 2021, set out data requirements for Target Product Profile for Microtox BT. Can you confirm all necessary data have been successfully collected?
This was answered in Question 20

Q37: RNS Number : 2004V, 10 December 2021 advised "roll out of the breath test is subject to meeting the satisfactory requirements of EU Regulatory approvals which will be carried out on the latest version of the Microtox® BT units. Further information on this will be provided in H1 2022." To date has the company contracted a notified body to achieve CE marking? If yes when was this undertaken and what is the current expectation for the timeline for completion of approvals?
This was answered in Question 20
Q38: When is it anticipated that investors will first be shown Microtox BT? To date unit including PBM-HALE has not been shown. What plans do the company have for the microtoxbt.com domain?
This was answered in Question 20

Q39: As of today how many vehicles comprise Modern Water Mobile Services?
5 vehicles are being used to promote the mobile services offering, which is being considered as franchised contract units. They are being used for site visits in the food industry and can be hired by universities to run on-site tests. There will also be units in the US but China is not expected to be part of the early roll out due to distances that make promotion not as cost effective at conferences

Q40: ICE vehicles do not fit with the environmentally conscious image the company wishes to portray. That being the case how quickly is it anticipated BEV vehicles will be adopted?
We have solar panels on the roofs and where we need to get to, sometimes long distances from large populatioon areas, BEV vehicles cannot always depend on easy access to recharging facilities. So for now, ICE has to be used

Q31: When will you be able to provide H1 trading update?
The interims are out in September. However, we have provided trading updates and RNSs to show our growth progression continues upward

Q32: Hi, your RNS re Skin Trust was a bit vague. Can you please clarify in more detail and what the plans are? Is it a spin out? Nasdaq listing? Other? What role are the VCs and other Tier 1 Cosmetics companies going to play?

As the RNS states, the Board are exploring multiple options with multiple parties that are open to the Group on how best to maintain the hockey stick trajectory of demand we currently experiencing and will inform the market as soon as we can on how best to take full advantage of this good problem to have, from both divisions.

Q33: How are you finding staff recruitment
Q34: Often the microtox deals seem to be in lots of 27 Is the a number they have to be sold in or do they run independently
Yes, the networks are in a grid format of 3 x 3 (9 units) and in the case of 27 units, they are in 3 regional areas of 9 units per region.

Q35: What margins do you expect to see
We already improved margins from 41% to 57% year on year, so further growth and efficiencies would be expected to improve those. In the case of multi-year rolling agreements, we increased the margins by 140% compared to selling equipment only. We highlighted this in an RNS on March 11 https://polaris.brighterir.com/public/deepverge_plc/news/rns/story/x8k9kjx

Q25: Any updates you can give regarding partnerships with Microsaic and Abingdon Health
Microsaic is such an under-rated turnaround project. That we cooperate on upgrading equipment in Modern Water and take their PFAS technology and roll it out through the Modern Water distributor channels makes it work so well. Abingdon Health is also a development that will offer multiple revenue streams as extensions in the field for Modern Water monitoring and is a perfect marketing tool to quickly show potential clients that they have a problem, even before installation. Once the client is shown the problem, it becomes so much easier to offer a long term monitoring service and large equipment installation. This is as useful for legionella in stagnant water in hotels and on ships, as it is for acrylamides in manufacturing production of food. We look forward to rolling a range of LFT's out in the few months and years ahead as we build the fast-track offering of LFT's through the group

Q26: What is the range of fee for each product being tested to feature on marketplace?
Q27: When will the UK Microtox PD trial conclude?
We have multiple trials in multiple jurisdictions as well as tweaking the PD units to achieve the desired sensitivity and specificity for a range of pathogen targets. SARS-CoV-2 is just one pathogen and the multiplex units are part of the trials and development.

Q28: The £1m revenue from STC did the include marketplace testing revenue from labskin?
The Skin Trust Club revenues identified in the July 4 did not include any revenues for Labskin

Q29: Is there enough margin to mess around with the PED for the tests kits in the UK? (Lowering price to sell more) On the assumption currently a high portion of UK kits are on a free trial basis.
PD units installed are not free. It is part of agreements that they are paid for, even while evaluating

Q30: Are you able to provide indications of revenue growth for 2022?
The growth of both the life science and environmental divisions are not providing us with an ability to give guidance the same way as we were able to see in 2021, simply because of the number of £1m+ deals in the sales pipe for both divisions. We will update the market when this becomes clearer

Q21: China resources JV update pkease
As I mentioned in the AGM, we have a working relationship with Environmental Technology China Resources now for over 2 years and much of the government department orders in China involve our relationship through them. We have not concluded some development on the PD, which was not part of the original negotiations and remain part of our future development with them. Not withstanding COVID in China is still a major threat and we have not been in a position to have free travel to parts where we would like to, so cooperation and collaboration is ongoing and final agreement remains incomplete at this time

Q22: Polio and beckton and microtox please
Polio is one of the multiplex developments which will roll out. As pointed out by Fin (Murray COO of DeepVerge) in the presentation, we hope to be able to have a range of pathogens on the chip, based on demand of the target clients territory.

Q23: Roughly speaking what percentage of skin care products do you reject for not conforming to the STC protocols.
If they have a positive impact on the skin microbiome, they will be included, even a small impact. However, it is not the product that gets offered if there is a better product more suitable to the Skin Trust Club member. This makes it more important to be able to provided feedback with data to the skin care supplier on the value of their product after it has been launched. It indicates whether the product needs reformulation to improve demand, so makes all products better in the long run. Valuable development data for the industry after product launch

Q24: Recently there was poliovirus detected from Sewage samples in London. is the Modern water system capable of detecting this type of virus already or does it require physical or remote upgrade to detect new viruses after they are initially detected
All we need to do is change the Aptamer binding agent to what we want to target, which is done with the cooperation of our development partners and the team in the Aptamer Group plc. This can be a range of targets, including polio virus

Q15: When will STC be launched in China? Are there any plans to expand further elsewhere in Asia?
Due to unprecendented demand in the countries we are operating right now and the COVID lockdown there, we could not manage to roll that out in China yet.

Q16: Well done lads. Lots of criticism in the past which you can't always answer freely. Keep it up.
That is just part of being a public company restricted to AIM Rules 10 and 112 on disclosure and future material issues. However, always something going on behind as can be seen from the recent results. These usually take months to bring to conclusion

Q17: With orders in pipe what is the cut off date to produce, ship and invoice for this years accounts
We ship up to the last minute of the last day of the last month of the year

Q18: Will there be a listing on the Nasdaq. If the corporate action is done in us as most of the business we be done there not in UK
We disclosed that we are exploring a number of options and have not ruled anything in or out. However, we will inform the market when decisions have been made. That is the best answer we can give right now

Q19: Can you please give some update on microtox PD
Q20: sorry microtox BT
The breath test is one extra step along the Microtox PD as to how we extract a sample. The Microtox PD remains part of the development process for miniaturisation, and we have provided updates on both improvements and installations where the PD units are. Once we are satisfied with the final project, we will apply for medical device classification, as it requires such application based on the final device that would be used for a single persons diagnosis. It remains a well advanced, but not yet public, development

Q9: what has been the lead time to achieve sales with semiconductor customers, now you have significant contracts, will the lead time be similar for other customers or reduced?
From recent RNS this week (18 July 2022) you will see that larger networking systems are being installed. Many of these have taken 6-9 months from initiation to orders, but the outcomes are sales in 7-figures rather than smaller 5 and low 6 figure sales of equipment

Q10: The G7 have said they would like a sentinel to track pandemics by 2024, which countries and other stakeholders like WHO, do you see leading this, and how well connected to this are Deepverge.
China and the US are leading this at this time

Q11: Testing of PFA's seems to be a very active line of business development, are there any regulatory / legislative conditions that need to change before this will grow, and in which countries do you see the greatest demand?
The US has the greatest demand and we are seeing major interest in multiple counties in California

Q12: Is the continuing recruitment of staff part of the 2022 Business Plan and thus do they impact the Co's expected Year end profitability? If yes, what impact are salary increases expected to have on 2022 profitability?
From today's RNS it can be assumed that we had not expected the significant increase in demand that has been seen for either Skin Trust Club members joining and the strain on laboratory team members. Because of that the Board are exploring options to ensure that we continue with the Silicon Valley rate of expansion.

Q13: Will an RNS be issued when Microtox PD mass production commences? Will production commence in spite of, or because of, orders?
Production is underway as can be seen from recent social media images and also orders in Q2 and this weeks RNS for the middle east 27 unit network

Q14: With China facing an economic crisis potentially, how exposed are you to credit risks, bad debts etc and how are you mitigating these?
We have been working in China since 2011 and have a physical office in Shanghai since 2013. The clients of Modern Water are municipal, local authorities and government bodies and as such are not subject to issues relating to bad debts.

Thought I'd just post here for visibility...hope the formatting isn't too bad.

https://www.investormeetcompany.com/investor/meeting/dvrg-agm

Q1: As a shareholder of 2&1/2 years currently 55% down how can you reassure me that my significant investment and patience will be eventually rewarded. And please don’t say you can’t control the sp but you can deliver on the timescales you have previously published and consistently missed. CR JV and PD rollout to name a couple

It is my job to ensure the growth of the Company, which has been achieved over the last (almost ) 4 years. It has grown in triple digit percentages year on year and continues to do the same, only missing EBITDA profit by a mere £17,000. In trading updates evidence of this growth is shown. Every technology company is down by 60/70, even 80% and while it is frustrating for shareholders, we are all invested heavily at management level, fully aligned with shareholders to build wealth for the long term benefit of all of us shareholders.

Q2: Update on CR JV please
COVID has played a major part in the recent growth of sales in China, but has also seen restrictions on deals being done. We work regularly with the Environmental Technology division of China Resources and cooperate with them on multiple projects in contracts aligned with central government departments. We have not yet concluded negotiations with CR but will inform the market when negotiations have been completed. In the meantime, sales continue to rise with them and other partners in China, as can be seen from the recent £3m June RNS announcement for Modern Water.

Q3: Why does your share price not reflect your shareholder updates ?
We have no way of controlling a secondary market in the trading of shares issued by the Company. We can only continue to drive growth to where profits are generated for the benefit of shareholders in the long term.

Q4: Can you please give an update on the negotiations with China Resources, reasons for delay and current expectation on timescale for completion.
See question 2 above

Q5: When is the trial on a national system of “sentinel” sewage works due to conclude?
Trials are continuing as COVID and equipment is installed in multiple jurisdictions

Q6: The UK Government were testing MicrotoxPD. Are the trials ongoing or ended?
There are ongoing trials in the UK and many other jurisdictions.

Q7: Which country do you see the adoption of Microtox PD at more than trial scale first?
China and the US

Q8: What time scale do you see you can get the lowest cost version of Microtox PD, and roughly where do you aspire for the lowest cost to be?

The MicrotoxPD unit is in a constant evolution to reduce in size and achieve multiplex (range of pathogens on a single chip) and it is likely that this will continue over the duration of the 2.8m Euro project of development, partly paid for by Enterprise Ireland and the grant of 750,000. This is about half way through a

NU - have you a link to the rest of the questions? Cheers,

Frix

Knee-jerk reaction to the DVRG AGM (showing good growth) perhaps?

Looking great so far.