Ethernity Networks Ltd (AIM:ENET, OTCQB:ENETF) said there has been a government approval delay to the US$1.05m contract recently signed with a Tier 1 US-based aerospace system products provider.
The licensing deal involves Ethernity delivering its silicon-tuned software to enable specific networking functionalities on the customer's unique platform and is contingent on US government approval.
Ethernity added that both it and the customer are confident in its imminent approval.
In anticipation of this, initial project milestones have already been delivered as they are an inherent part of Ethernity's UEP Switch/Router offering and do not require special development.
As a result, once the US government approval has been obtained it will trigger an immediate payment of 40% of the contract value.
Training of the customer’s staff to familiarise them with Ehternity’s technology has also started.