Quarterly surprise in store ?

Following up on Chairman Mark Leong's presentation to Strawman on Wednesday (see meetings page).

I'm clearly a fan of this one and guessing that the cash runway is the only thing holding back the share price.

Gross margins are very high - they need a step change up in revenue.

I think that this is underway & Mark mentioned this twice at least during the presentation.

This is primarily due to the acquisitions. The acquired businesses did 43% of their revenue last CY or say $177k in March quarter.

If revenue from a typical product go from $1 to $2.5 (as stated by Mark) then that $177 becomes $442k; an increase of $265k.

However there is also the following:

a) Resumption of sales to Europe this quarter due to the company’s successful transition to the new EU medical devices regulation.

Such sales were completely missing from Q3 FY 23 – but are 8% of normal sales – so say $33k added there

b) Normal’ pre-covid and post-covid growth of about 8% per quarter – so say $33k added there

c) Craniofacial heating up, particularly in Vietnam, new markets in Great Britain, South Africa & new products in Taiwan – say another $50k.

So I think it’s not unrealistic to think that current quarter revenues may be higher than $700k.

If this is the case then their cash runway suddenly becomes (I calculate) over 6 quarters.

This is with none of the entitlement shortfall amount placed and with no subsequent revenue growth (both unlikely).

I also think that Chinese regulatory approval is closer than the market thinks ie 3^rd quarter this year – this is the second largest market behind the US.