The Mobilicom Ltd (ASX: MOB) share price rose 4.55% on Friday after the company released a positive business update. The Mobilicom share price has remained steady this morning, currently sitting at 12 cents per share.
Headquartered in Israel, Mobilicom develops communication solutions for mission-critical private networks without the need for any infrastructure. In addition, Mobilicom has a range of patents for technological breakthroughs in this sector.
Some of the company's clients include Space Florida, the aerospace economic development agency of the State of Florida, as well as Samsung, the Israeli navy and Japanese telecommunications company NTT.
What moved the Mobilicom share price last Friday?
The company released a business update for Q2 FY20, showing improved financial performance and an increased pipeline of work. This was in spite of constraints from the coronavirus pandemic.
Mobilicom reported an increase in cash receipts of 42% for H1 FY20, versus the previous corresponding period. When combined with stringent cost control measures, the company has managed to keep costs for the quarter at $0.4 million, preserving a cash balance of $3.6 million.
In more good news for the Mobilicom share price, government grants increased by over 100% compared to the previous corresponding period. These grants are expected to continue for several years, further improving the company's cash balance.
Mobilicom also summarised its new achievements during the quarter. It won a 2-year drone research project with Censys Technologies for Space Florida. This project is to develop a communications system for autonomous drone and unmanned aerial systems and it has a first-year budget of $770,000.
In addition, the Israeli Innovation Authority selected Mobilicom to work on wireless artificial intelligence (AI) for 5G networks. The company expects the project to run beyond 2021. It has a CY20 budget of $550,000. Once development is complete, Mobilicom will use this technology in its own next-generation autonomous systems.
Lastly, the company announced it has secured an additional patent with the US Patent Office. The patent covers 18 claims for advanced algorithms and innovation concepts, and strengthens Mobilicom's patent portfolio and knowledge base.
The company is continuing with the development stage of the new ground controller station (GCS) solution for leading Canadian drone supplier Elbit. This is a major contract for Mobilicom, worth over $2 million.
About the Mobilicom share price
The Mobilicom share price has risen by 130% from its low point on 20 March, valuing the company at $29.66 million.
