Nexus-Vita is supposed to be the next kid on the block to make us break even. Their contract states compulsory minimum payments to AHI on release of their app, regardless of the subscriber base. A simple calculation of contract value (12 months) versus AHI burn (see Company Presentation for most up to date cash burn rate) and we've broken even.
I see your point about the many deals, not so many revenue generating. I don't necessarily see this as a bad thing. We have to accept that any partner will need some time to assess the tech, embed it into their own ecosystem, test it rigorously, release it, advertise it, and grow their subscriber base... and so I expect, to some degree, some level of delay. In my humble opinion, the subscriber numbers agreed on the Binding Term Sheets are, to some degree, wishful thinking. That's a LOT of people to convince to sign up to spending $100p/a on a body scan, and a lot of that time is taken completing the aforementioned tasks.
But here's the thing... we have so so so many ripper contracts signed, that we only need ONE to take off for AHI to be rolling in cash! My money is on something a little bigger and already successful (McGregor FAST, the little hint hint we got from a video interview with Vlado about Nike) or an enterprise deal (i.e. Bearn).
We will get there in good time.
I also agree with other's points about the necessary dilutions in order to acquire new IP. That new IP will, in turn, give us revenue. It might just convince a prospective client to sign into the AHI ecosystem because it's jam packed with features!!! It's a balance between trying to develop the business and its offerings, and trying to make money!
AHI Price at posting:
$1.81 Sentiment: Buy Disclosure: Held
(20min delay)