Quarterly, page-99

Hope this is helpful.

A dip in earnings and continual growth in staff costs, R & D, and Marketing.




Am aware that there are other factors at play, the difference between revenue and staff costs seeps to be growing and not in a good way. Not a great graph - but necessary for a balanced view.




However, the continual ( growth in numbers of centres buying is encouraging and I remain very positive about this long term. 30 ish centres in the USA in the past 12 or so months is just scratching the surface. Cormatrix reportedly had 850 centres (or customers) and the Society of Thoracic Surgeons data base has over 1000 sites submitting data (1052 in 2013 to be precise) which has grown at 1-3 % each year for the past 5 years. With market penetration of 3-4% of the potential market, the less than ideal numbers about $ coming and going at the moment during the start up phase, should be considered with the load of up side to this.

A very simply view (not to be taken as gospel)...... take half the current revenue (estimated as US sales and ignoring other sales streams) and multiply that 25 or 30 times (estimated as full market penetration).......................

If current income is 2 mill for the Q , 8 mill for the year (numbers rounded for ease of calculation but it was 8.5 for the past 12 months), half being US sales (4 mill) x 25 (100 mill) or 30 (120 mill) achievable through the sales of 66000 and 80000 patches respectively. That equates to each centre using 80 patches per year - between one and two each week...... not beyond the realm of possibility. Current CHD and valve repairs would likely struggle to create that type of demand (up to 10 000 identified 'patch' using CHD repair procedures per year and another 10 ooo valve repairs), but taking some of the valve replacement market (60 000 procedures in 2013) and tapping in to the bypass graft market (170 000 + reported procedures) - just 25% of these two markets will provide sufficient demand - 15 000 valve repairs in stead of replacements and providing product for 30 000 bypass procedures. Again, still not impossible.

And that is just for the cardiothoracic market in one region.

Additional centres reflects interest by users, repeat sales could reflect growing user confidence.

see you all at the BBQ.