Do you know that Harmon Kardon, as an example, when they build a new unit from scratch with a design house, pay a one off fee of 300,000 USD for design/concept/pcba / bom list/packging and to produce up to 50 working prototype, fully packaged for finalapproval? The PCBA is made up of from numerous modules from different companies who have pre-agreed fees with the top design houses on royalties per usage ( developer agrements) . The design house company takes the 300k fee design plus a cut of the end unitproduct ( normally 10- 15% depending on the client) on agreed minimum runs of 50,000 units pe run.
If per-say, the average cost to build a premium TWS headphone on a single chip qualcom solution with a hearing app is circa 89 USD (boxed finished sealed and ready for shipping) and that the hearing app is only pcba based into the board, what percentage of that 89 USD figure do you beleive is the hearing app royalty fee Nuheara would achieve from each unit manufactured.
Recurring revenue is not repeat ordering of hardware, it is additional AOS to an original device, that after the device is sold, creates an ongoing revenue stream from that device. What you describe above are repeat orders for hardware, the hardware once sold to the end consumer is at present a one trick pony, that creates no further revenue from the device once sold.
NUH Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
(20min delay)