Agreement
Summary by AI BETAClose X
Seeing Machines Limited ("Seeing Machines" or the "Company")
Seeing Machines to receive accelerated lump sum royalty payment of ~US$14.1m under Automotive Program Guarantee
6 January 2026
Seeing Machines Limited (AIM: SEE), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, today announced it will receive an accelerated lump sum royalty payment of approximately US$14.1 million from a Tier 1 automotive customer under an existing Automotive Program Guarantee.
The payment, which will be received this month, relates to a material change to a production program which has enabled a renegotiation of the royalty payment terms, under guarantee. The accelerated payment is being made in lieu of future royalty payments that would otherwise have been received over the next four years.
The accelerated cash generated from this payment and associated revenue recognised will further increase profitability and cash generation in the second half of FY2026. The third quarter of FY2026 represents a significant financial milestone for the Company as it will be the first quarter of generating positive earnings and cash.
Looking ahead, automotive royalty revenues are expected to increase materially over the next two quarters, driven by the rollout of General Safety Regulation (GSR) legislation across Europe. These regulatory requirements are anticipated to accelerate both demand for and fitment rates of Seeing Machines' proven driver monitoring technology, particularly in European vehicle programs, supporting additional high-margin royalty revenue.
In parallel, the Guardian Aftermarket solution continues to gain traction in new geographies, particularly in Europe and North America. As momentum builds, Guardian is expected to achieve a quarterly sales run rate exceeding 6,000 units by Q3 FY2026.
With these developments, Seeing Machines expects to deliver improved positive cash flow in early 2026, reinforcing the Company's progress toward sustainable financial performance.
Paul McGlone, CEO of Seeing Machines, said: "The guarantees we have in place with this customer mean that we are able to receive guaranteed royalty revenue for this program as originally planned and, in this case, benefit from an accelerated, high-margin cash injection that directly supports the ongoing growth of the business.
We are now well positioned to continue executing our strategy, build cash reserves, and progress a range of options to meet our convertible note obligations in October 2026."
This announcement contains inside information under the UK Market Abuse Regulation. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul McGlone, CEO.
Enquiries:
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Seeing Machines Limited |
+61 2 6103 4700 |
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Paul McGlone - CEO |
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Stifel Nicolaus Europe Limited (Nominated Adviser and Broker) |
+44 20 7710 7600 |
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Alex Price |
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About Seeing Machines (AIM: SEE), Seeing Machines is a global company founded in 2000, headquartered in Australia and is an industry leader in vision-based monitoring technology that enables machines to see, understand and assist people. Seeing Machines is revolutionising global transport safety with its technology portfolio of AI algorithms, embedded processing and optics, that power products which must deliver reliable real-time understanding of vehicle operators. The technology spans the critical measurement of where a driver is looking, through to classification of their cognitive state as it applies to accident risk. Reliable "driver state" measurement is the end-goal of Driver Monitoring Systems (DMS) technology that Seeing Machines develops to drive safety for Automotive, Commercial Fleet, Off-road and Aviation. The company has offices in Australia, USA, Europe and Asia, and supplies technology solutions and services to industry leaders in each market vertical. www.seeingmachines.com
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