ASI Entertainment, Inc., has announced the completion of the SafeCell Aviation Valuation. The company also announced that it was in receipt of the independent expert’s report.
Valutech Pty Ltd, completed the independent valuation report on behalf of IC Consulting Services, LLC differentiated SafeCell from alternate pico cell systems and confirmed the commercial viability of ASIE's patented SafeCell aviation communication technology.
The SafeCell aviation application has been licensed to ASiQ Ltd.
To create the independent report three separate valuation methodologies needed to taken into account. These methodologies are based on three year projections totaling 1,000 aircraft, or 5 percent take-up of the overall airliner market, plus 10 percent p.a. incremental growth in years four and five.
Following are the methodologies:
“Valuation on the basis of a multiplier of 6 on earnings for the second year of the business provides a valuation of the business of $20.3 million if the modest projections in the first year are met. The value in the subsequent year is 8 fold higher. “
“Valuation on the basis of a discounted cash flow of after-tax earnings over five years provides a value for the business of between $63.6 million and $67.5 million without any consideration being given to residual value at the end of that period.“
“Valuation on the basis of a discounted free cash flow over five years without any residual provides a value for the business of $45.3 to $48.4 million.”
Revenue that is generated by SafeCell will be employed to pay off royalty fees to the tune of $43 million to ASIE over a period of five years. The figures mentioned in the valuation report by Valutech are conservative in line of the fact that in the event the industry goes with ASiQ Ltd's projections, which are based on a five year take-up of 3600 aircraft representing approximately 15 percent of the overall airliner market, then royalty income will increase to $100M over five years.
Both projections however are based on revenue received from SMS messaging, and don’t include any potential revenue from MMS, email, advertising, e-commerce or ground services.
Vinti Vaid is a contributing editor for TMCnet. To read more of Vinti's articles, please visit her columnist page.