t42 IoT Tracking Solutions plc announced that after long and thorough process of assessment, it has entered into a development and supply agreement ("Agreement) with a  transportation and logistics security tracking firm in Brazil (the "Client") for 30,000 tracking units over 3 years, together with associated SaaS revenues. The Agreement is estimated by the Company to have a total potential value of up to approximately $4.5 million, over the 3-year period, on the basis of full deployment of the hardware and software services. Under the Agreement, following acceptance by the Client of the system development, the Client is due to place an initial order with t42 for 10,000 tracking units, with a non-refundable deposit payment having been received by the Company.

Revenues from the initial order, once placed, are expected to be received commencing in Fiscal Year 2024.  The Company will update the market once the initial order has been received. The Agreement, which includes ongoing systems development, has been executed after over a year of evaluation of the Company's systems by the Client and a detailed analysis of the Client's requirements by t42, which demonstrated the Company's knowledge and ability to accurately identify the Client's needs and to develop a product to meet these needs.

t42's comprehensive solution, integrating its tracking units, has been developed through the integration of various currently independent systems coupled with the introduction of new applications into a unified system. These enhancements extend to all facets of the system, encompassing hardware, management software, and ultimately, a smartphone application for end-user service, affording the Client a considerable advantage in their domestic market and facilitates their entry into international markets. This solution simplifies the system's implementation with the Client's own systems.