Embattled Structural Monitoring Systems plc said it is in ongoing talks with two global companies over a potential deal for its patented aircraft fuselage technology, two weeks after sacking staff and executives.
Embattled Structural Monitoring Systems plc said it is in ongoing talks with two global companies over a potential deal for its patented aircraft fuselage technology, two weeks after sacking staff and executives.
Embattled Structural Monitoring Systems plc said it is in ongoing talks with two global companies over a potential deal for its patented aircraft fuselage technology, two weeks after sacking staff and executives.
In its June quarterly report, SMS said the discussions with the unnamed companies were in a bid to establish either a partnership or supplier/teaming arrangements.
"Both companies are first-tier suppliers to aircraft manufacturing companies, with significant interest in emerging structural health and condition monitoring technology," SMS said.
SMS managing director Mark Vellacott told WA Business News that he had been talks with the overseas-based companies on and off over the past two years.
Mr Vellacott added that SMS is working towards securing an arrangement but would not be drawn when that could take place.
"The company's main focus is to commercialise the CVM technology," Mr Vellacott said.
CVM or Comparative Vacuum Monitoring is designed to detect structural flaws in aircraft fuselage.
The company has been working with Boeing, Airbus, the US air force and other aviation groups to test and refine its technology but has not yet generated revenue and has been unable to raise necessary working capital.
Mr Vellacott said SMS was in ongoing discussions with a number of interested parties about a capital raising, which will help the company to retain its employees.
Two weeks ago SMS became the latest WA technology company to hit the wall, announcing that it would be terminating the employment of all staff and executives.
That announcement followed staff cuts in May, when SMS cut its research and development activities.
At the end of the June quarter, SMS had $1.067 cash at hand.