Roark have 3 distinct revenue channels:
Managed Contract Hire
A managed contract hire agreement sees the deployment of our hardware to client designated locations along with a fixed number of Plexus “seats” and an ongoing service/maintenance contract. The contracts are for fixed terms of 24 or 36 months and are charged at a fixed monthly rate that is derived from the amount of hardware to be deployed.
The end-user acquisition cost of the hardware is amortised across the contract length and, based on 2024 gross margins means contracts begin to generate profit at around month 8-11 depending on the contract length, this is the point at which the attributed “cost of sale” is realised from revenue flows.
Each contract carries on-going costs which are included on our balance sheet.
The product categories falling under this revenue channel are:
Service Contract
A service contract sees the deployment of our hardware on an “aaS” basis. Pricing is based on a fixed term and is invoiced monthly, the actual bill to amount is dependent upon the end-user requirements. Under service contracts, Roark manage all aspects of the product delivery with the end-user receiving a defined output product.
The product categories falling under this revenue channel are: