There are a number of key problems one of which is fundamentally to do with net cashflow.
The issue isn't CardioCel per say, the product itself is good imo as can be seen by the increase in sales revenue, granted there are seasonal swings as per the 4C. The issue is that overall costs far exceed sales revenue - thus a gross margin issue and corporate expenses issue (hence the problem with cash flow). The company is unable to stand on its own without positive cashflow and must constantly seek funding through either equity or debt.
Some items to consider:
Can cardiocel by sold for at a premium, if not why not? Assuming market forces at play, the product is either being undersold or its being sold at a a fair market price.
If sold at a fair price, can production costs be reduced further, if not why not? (you would think that economies of scale would benefit here, but its a catch 22)
Considering the above, what is the break even Caridocel quantity required to reach an acceptable gross margin, and therefore net profit?
Is cardiocel a high quantity product, if not why not? Market reach, market saturation/penetration, competitors see above comment, if they can't sell more than their B/E quantity, they are in trouble.
What else is Admedus working besides TAVR, what other upsides?
How else can Admedus reduces operating and overhead expenditure?
Why is the CEO being paid a bonus based on sales revenue (or "performance") when Gross Margin is horrible (see my other post re: overall performance of CEO)? Why is his own shareholding so minuscule compared to his salary and bonus, especially considering the massive decline and dilution in share price and market value?
Does Amdedus have the ability to constantly meet its funding requirements?
AHZ Price at posting:
4.0¢ Sentiment: Sell Disclosure: Not Held
(20min delay)