David Williams: We expect to build our first revenues on that project during the current half year. We initially plan to go to full launch around about spring next year based on the passage of legislation going through one particular government, but we’ve actually begun service planning already, because we encountered one very large global partner, who wants to start using the product before the legislation was even past. We haven’t pitched that product to a single potential customers who said no yet. Every single potential customer we pitched into has said, yes. It has some very peculiar advantages, not just in its cyber security. But the way that the product has been created, it improves the cash flow for the vendor of the product and it reduces the risk for the bank that finances the invoice.
So it’s really a win, win. So we’re expecting some billings, certainly in the current financial year. It’s a very large global market. So I’m really very optimistic about where we can go with that. But we’ve also already started talking other styles of financial services organization about using this product in other areas of finance such as insurance for example. I’m actually convinced now. Although, we’ve seen the blockchain industry has had a rocky road as a result perhaps of experience in the unregulated spaces. But it seems now very clear that the regulated financial services market is adopting digital assets at scale and we’re having some very interesting conversations as a result as banks in all areas of financial services transformation realize, that if technologies are not quantum safe, they have no long-term future.
Scott Buck: Now that makes a ton of sense. And then last one for me, David, any hesitancy you’re seeing among potential customers just given kind of the rising level of macro uncertainty?
David Williams: No, I don’t see any particular effect of macro uncertainty, other than as I said in the U.S. Defense Department, there is a continuing resolution, which makes it harder for departments to create new budgets and that’s affecting everybody a bit. And of course there, are budgets being applied to the east that wouldn’t necessarily expect to the year ago. But what we’re seeing is, that every organization now knows that, it has to upgrade its encryption. We’ve recently done some surveys ourselves and all see those that we’ve spoken to are aware of the need to urgently improve their encryption. So it’s not as though we’re starting in a mature market, which has been experiencing problems. We’re starting almost at zero.
It was only in May that the White House demanded all organizations prepare for crypto transformation. So this is a market which is growing from a low base and we are expecting it to accelerate very dramatically. So I don’t think macro is a particularly relevant effect for us.
Scott Buck: Okay. Great. I appreciate your time this morning, guys. Thank you.
David Williams: Thanks.
Operator: Our next question comes from the line of Nihal Choksi with Northland Capital Markets. Your line is now open.
Nihal Choksi: Yes. Thank you for taking my call. So how long would Dell, AWS relationship started? And where they part of that $740 million pipeline few months ago?
David Williams: Yes, good question. The relationships in their first iterations definitely began about 18 months ago. So, we definitely had hopes and expectations before we came to market that those projects would come to fruition. I would say, however, that the engagement that we got from those companies did accelerate when we published the security proof in April this year. We were able to generate independent validation that’s uniquely amongst all companies in the world, Arqit Software producers keys which are zero trust and probably secure. And of course, that was backed up by the fact that the organization doing that assurance, is a GCHQ accredited Center of Excellence. So it carried quite a lot of providence and our friends at PA Consulting also did their own assessment.
