Some ships switch their transponders off at sea so nobody can see where they are going. A Perth company has built a way to find them anyway. It is Overwatch Technologies, and it is heading for the ASX.
The tech
Overwatch flies autonomous drones that detect, map and track radio-frequency emissions coming off vessels. That includes the dark fleets that go quiet to dodge monitoring. It doesn’t build the drones itself. It holds an exclusive Indo-Pacific licence from Polus Tech for the RF sensing payloads and drone platforms.
The customers
- 2 government customers, names kept confidential
- A$3.8M contracted
- A$2.88M invoiced
- A$1.88M received in cash
The float
Overwatch is raising A$8M by issuing 40 million shares at 20c, which implies a market cap of about A$26.7M. It is due to list on 16 October. It is run by executive chair Harry Karelis and managing director Oscar Leslie, who cofounded it with Nathan Munn and Niv Karmi.
The catch
No revenue has been recognised yet. The money invoiced and received sits on the balance sheet as a contract liability until the work is delivered.
My read
It looks scary on paper. But two governments have signed and A$2.88M has been invoiced. For a company of this size, that is the part I’d pay attention to. Whether it turns into recognised revenue is the thing to watch. This is information, not advice.