Etherstack's North American subsidiary, Etherstack Inc., secured a follow-on deal worth US$2.3 million ($3.5 million) with Daniels Electronics, a subsidiary of Codan (ASX:CDA), for the supply of additional digital radio communications technology.

The agreement builds upon the US$1.4 million ($2.1 million) deal disclosed in February 2020, with Etherstack manufacturing the hardware components in Australia.

The six-year supply contract includes provisions for additional licensing and support revenues beyond the baseline amount.

Majority of the revenue expected to be recognised within the next 18 months.