Elsight (ASX:ELS) shares are up 1.27% as the company announces its ‘Halo’ drone tracking tech is being picked up by Spright.
Spright is the subsidiary of US company Air Methods, which provides emergency evacuation services in medical emergencies.
Australian investors will likely see key similarities between Air Methods and the Royal Flying Doctor Service.
Ultimately, the fleet of UAVs (drones) Spright owns and uses to deliver supplies to consumers and other parties will now use Elsight’s Halo tech on-board.
Halo is a high-impact offering which uses AI to “guarantee constant uptime and connection between drones and ground control stations.”
The benefits here are obvious: less risk of lag or disconnection in real-time tracking of medical supply delivery, which could derail critical response events.
The company notes Spright’s drones are also used to deliver biological specimen samples to laboratories.
At this time, Elsight stands to make $130,000 from the deal (US$90k).
However, management describes today’s contract execution as the “launching pad” for an ongoing relationship with Air Method’s Spright.
The subsidiary is intending to expand into Europe in the coming years.
Elsight listed in early July 2017 trading at 15c. By the 1st of December that year, it was worth $1.47c — the all time high for the price.
Clearly, enthusiasm was overwrought (or overbought) — by May 2018, the price had fallen to 43c.
Within that range it has remained since. In July of 2020, the first year of covid, the price dipped to 26c, but quickly recovered in the same year.
Despite ongoing tech sell offs across world markets in recent months, Elsight has largely remained steady around 40c, though this may be a consequence of relatively low liquidity.
At the end of third quarter FY22, the company had $1.14m cash in hand.
It spent $810,000 across the quarter — depending on the look of its full year results, it’s conceivable the company may need to raise money soon.
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