AS-IP Tech Inc (IPTK)

[asiqlimited]

Just to clarify, there are 2 airline programs where royalties apply.

1. Agreement with Wizzair. In return for helping us promote fflya globally, we have offered Wizz a royalty as a % of our net revenue, subject to final fleet agreement.
2. In Indonesia we have licenced the program in total to JAI. In return we receive royalties on gross revenue on airlines they secure. They are responsible for all funding, marketing, support, operations, revenue generation etc.

Our logic is as follows:
Having a high profile airline like Wizz helping us, is the best promotional tool you can achieve in this industry. It also means we both benefit as the program expands, so it is in thier best interest to help develop it further.

Regarding Indonesia, we made the decision that Europe is our focus. Being a small company we cannot fund everything or spread ourselves to thin during launch phase.

This was the most cost effective way to launch in Asia, without impacting on our launch funding for Europe.

Finally, the convertible note holders may recieve a royalty on the Viator tours and attractions platform for a period of 3 years, once operation begins. That funding was instrumental in developing that interface and refining the airline platform.

So to answer your question, all fflya revenue except Indonesia comes via the company, and we then share with the airline. We collect the money.

Hope that helps

Ron