Member Info for Red0rb

I hope you're wrong too, Hippo!

I wonder if, with customers paying annually in advance, this puts the company in a very strong position, financially-speaking. Does that kind of leverage shield against takeovers?

Think it's highly likely demand (soon) exceeds current manufacturing capacity, I think management have already planned for this event.

Manufacturing is outsourced, our partner has facilities in UK, EU, US & Asia. At the moment there is 1 established and 1 new production line (both UK, total 40k units/month). The process for expanding production by upstanding additional production lines (either UK or elsewhere) should now be in place, hopefully it's quite turnkey.

Don't know about the wider supply chain but Craig & Co. have so far proved to be well on it.

One which skips the trial stage, as Leakbot advances to become a (the) accepted & proven solution...

Thanks dude, helpful without crossing any lines ;). Also, I feel a bit more educated in how the IP system works, ta!

If & when there might be competitor technology I'm hopeful the relationships Ondo will have with insurers could act as a substantial moat. Assuming all is going well in the future, insurers aren't likely to gamble on (presumably cheaper) competitor tech unless they're super confident it'll work robustly, and that kind of data requires large numbers of units and time in the field.

ha! i can't say **** as in ****hing! slooothing, sleuthing...ah, maybe i just can't spell!

thanks for the follow-up, appreciate your efforts, mine (as i made clear) were from 'amatur-****hing'.

mjdc500, would you be prepared to summarise to the layman, in your opinion, how strong ondo's ip coverage is?

I noted this the other day - Ondo's current contract manufacturer has production facilities in the US, so standing up an additional production line(s) producing 'made in the USA' Leakbots should be about as straightforward forward as it could ever be.

This might (emphasis on might) mean threatened tarrifs are not applied.

Morning folks. Last week there was some discussion around the registered IP which Ondo has which protects their position, some good info & links shared. I’ve done some weekend research to add to the mix...

(Firstly though – I’m not a patent attorney, or a legal/patent expert, so don’t take my opinions & thoughts as anything more than they are. I have at least coordinated patent searches & FTO activities within the tech startups I have worked at, so have some familiarity.)

Though the exemplar device is clearly of an earlier design, I think this - WO2017118834 - FLUID FLOW DETECTION APPARATUS https://patentscope.wipo.int/search/en/detail.jsf?docId=WO2017118834 is one of the most important core patents as it covers the underlying/fundamental methods used by Leakbot. It covers the classification of in-pipe flow by externally-measured temperature differential, includes the maths behind the technique, calibration and differentiating different types of flow/types of leak, it covers device software updates, connectivity, different use modes (e.g. holiday mode – when heating is off and there’s increased risk of pipes freezing then bursting).

I think WO2017118834 filed by Homeserve PLC in 2016, may be the parent patent/document and covers a long list of jurisdictions. Within the same patent family are (additional) filings in the key US, EU, UK, China & Australia authorities (GB2553681, GB2570225, EP3243080, AU2016384312, CN108700611, EP3400448, US20190128762). Those who on’t know: Leakbot spun out of Homeserve, then changed it’s name to Ondo Insurtech.

I dived deeper into the UK & US patents to ensure they checked out (freepatentsonline.com is my go-to resource to read the patent, UK & US government websites cover filing/renewal info):

GB2553681 was originally filed by Leakbot Ltd, according to gov.uk the patent is maintained (next renewal due Jan-25), and owned by Leakbot, expires ~2035

US20190128762 was originally filed by Homeserve PLC, according to uspto.gov the patent is maintained (next renewal due in 2028), and expires ~2038

Hope this adds to the discussions and fingers’re crossed for another positive week.

Thanks for double checking, Jabberba.

You say 5.8 billion (giga) litres per year

I said 5.4 billion (giga) litres per year

The original article was 5.8 million (mega) litres per year

Free & positive PR, 'tis all good!

Real shame nobody's corrected the typo in the original release, which downplays the positive impact Leakbot could have by 1000-fold. Saving should be Giga not Megalitres!

See my calcs from a day or so ago - would be great if someone else can check (am I correct or is the original report author and 100 media journalists correct...?!).

Either way, Ondo is getting the exposure they rightly deserve :)

There'll always be some folks who want to take a quick 30-40% profit, that's fine, market liquidity is healthy, personally I've done my research and am happy to await the future without dicking with the share pile.

Re.who wins US election,I'm sure Craig + Team will have a plan either way. And whoever wins, the US will run, people will still take insurance, the insurance companies will still look to being evermore competitive.

One option might be to 'make in the USA', the contract manufacturer for Leakbot has US facilities, so they'd (just) need to upstand a new assembly line. Don't know if this would affect taxes... but I could see it might.

Basically, I'm invested and I'm chilled :)

For context 5.4 gigalitres is just under 20% of Southern's largest reservoir, so is significant to them/us/the environment

Another great report backing up the positive impact. Thanks for keeping up the vigilance, 2phevs.

I think there may (be good if others double check) be something wrong with the report's maths though - it says 5.8 MEGAlitres per year (5.8 million litres) could be saved if scaled up to all Southern's customers, but I reckon it should be GIGAlitres (billion litres):

If 700 customers saved 4000 litres per day.

Southern provides essential water services to 2.6 million customers, so...

(2.6M/700)*4000 L * 365 days = 5.4 billion L/year.

The impact is therefore 1000 times bigger than reported!

Ha! I'm well aligned on the scope should be multiples of my example figures! Mine are perhaps limited to a 1-2 year timeframe for expanded production aligning with increasing market penetration.

You don't jump from 1-200k users to 200M overnight, let's get to 2M first and from there the other 198M are bound to land ;)

everyone can run their own projections. but if by paying for the system the insurer saves money, the insurer then encourages or even insists it gets installed...?

ondo has the (ip on the) only available economically viable solution.

how many households & business properties are insured (us + eu/uk + row...)? i reckon the number's bigger than the 2m in my ***-packet-calculation.

I've always had the (private) opinion that Ondo is beyond £1B when it gets in its stride, I really don't want to see any takeovers!

My rudimentary maths: 2M households/businesses x £40pa = £80M revenue pa. Modest 12-fold multiplier (modest as company will still be growing) makes a valuation just shy of £1B.

Next question is can demand be met by supply, think the answer is 'yes', strengthened by yesterday's announcement. 2M Leakbots at 40k pm will take 50 months at current production rates. Our manufacturing partner has scope to expand further in UK, and has additional facilities in US, EU & Asia. Leakbot is not complex in the grand scheme of things so standing up expanded manufacture should be somewhat turn-key. To get to my point - it only needs another 3x increase to production output to cater to 2M unit demand in less than 1.5 years.

Also believe most contracts have a favourable business model where most revenue is upfront.

You're quite welcome.

I'm not in the world of industrial-scale manufacturing but a quick look-see does give you confidence, think Craig/Ondo chose them with a bright future in-mind.

Asteelflash are a top 20 (global, by scale of operation) contract electronics manufacturer, #2 in Europe, according to Wikipedia, at least.

Took a look at Asteelflash: https://asteelflash.com/

They can easily support & absorb Ondo's future increased build demand.

They have facilities in the US and Asia (alongside UK & EU), which may be important down the line re. logistics and taxes etc...

It's excellent news. Hard evidence of mounting traction. I'd expect it would be hard to trigger this expansion (multiple decision makers involved) without high confidence/firm orders.

Think in 2phevs' original post is the RNS on the stock exchange. I believe RNS posting on this (LSE) site is a bit hit & miss.