Nihal Choksi: Great. So you had $7 million QuantumCloud for fiscal year 2022, what does it actually to exit ARR for fiscal year of 2022 on the ARR?
David Williams: We haven’t published that number. So I don’t think I can give you that stat. We’ll try and give you some deeper granularity when we do the Capital Markets Day, which we’re looking to organize early in the new year.
Nihal Choksi: Got it. Okay. And then what’s the — what do you expect Arqit needs to do other than educating these partners sales teams to sell the Arqit Solution in order to drive the customers of Dell, AWS, and Fortinet to adopt Arqit Solution? What Arqit is going to be doing beyond just the education of that sales team?
David Williams: So in some cases, we are involved in direct bids to large organizations in partnership with those companies. And that means visiting those very large organizations perhaps with our own technical experts to educate the end customer. And that’s what typically very large contracts. But for the vast majority of the ARR style of business, we have to support the channel. And what that means is and I’ve been doing that myself, I think I’ve been in six countries in the last six weeks, visiting customers, doing large events conferences and exhibitions where our partners presenting and educating. Finally, we have to make sure that the all of the distribution channels of these hyperscale vendors are educated. So it’s really about supporting the channels with marketing collaterals with white papers, with information and research.
Making sure that we have salespeople on the ground that can deal with queries and we do now have sales people employed on the ground in Australia, Singapore, in the Middle-East, in several jurisdictions in Europe and in North America. So, the salespeople are typically supporting the key account managers of those large vendors directly as and when required. But ultimately, certainly for Fortinet and AWS, this is a cloud fulfilled sale. This is customers being able to simply buy product in the marketplace, pick a box make a payments and buy the software. So there is some channel management with sales, account managers having to be educated, but overtime, we expect revenues to be driven by simple online fulfillment.
Nihal Choksi: Got it. Okay. A couple more quick questions here. Just going back to the $7 million QuantumCloud. Is that all going to be — is that all effectively subscription revenue? Or is some of that enterprise licenses were actually a perpetual?
David Williams: It’s mainly enterprise license revenue. Some of those licenses we are expecting to renew and continue and pay more.
Nihal Choksi: Okay. So just to be clear, when you say enterprise license revenue, is that term based or is it a perpetual arrangement?
David Williams: Yes, typically enterprise licenses term based. But also what you find is that an enterprise license with some customers will begin at a tightly bounded range of utilization. So for example, one might say, that the enterprise license grants the license or the rights to use the service in a certain market, in a certain segment for a limited number of endpoint devices and a limited range of keys. And hopefully the customer expanded their activity and needs to buy more.
Nihal Choksi: Yes. Got it. And then finally this $50 million ATM that you announced this morning. What’s share price range do you expect to be utilizing it? And what is your current cash burn rate?
David Williams: We don’t expect to be utilizing anytime soon. I don’t think we put any statistics in that document, that was something which our bank when we did our SPAC told us to do the exploration of the first year of trading. So I think it was always planned that was something that was an ordinary course of business thing to do. So, we haven’t given any more thought than that.
