Ann: Initial Felix product sales update, page-65

That's where their brilliant sales model comes in. It's a printer and ink model. They sell the FELIX device as well as the cartridges needed to run each semen specimen. That means if an IVF clinic deems the FELIX device as an essential component to increase the fertility chances in an IVF cycle, then that's an IVF clinic and all their IVF cycles signed up to MEM for a lifetime, because they will forever be dependent on MEM to provide the cartridges. That is why the monetary value of an initial commercial sale is pretty insignificant because it's all about the lifetime value of that sale, not the initial sale itself. Furthermore, if one clinic is delivering better fertility outcomes due to the FELIX device, then other clinics will be desperate to get their hands on the FELIX device as well, because, at the end of the day, IVF is a very lucrative and competitive business, couples are desperate to conceive and willing to shell out any amount of money as long as a clinic can guarantee better fertility outcomes. What really caught my eye on MEM is that management were already making announcements of possible sales by Q4 2020, even though, not even a single clinical trial has been done using the FELIX device. This shows the extreme confidence management has on the FELIX device and how well they have been received by KOL's in early targetted markets, to the point that they did not even request a clinical trial from MEM. Most KOL's are scientific experts who work based on the scientific method, which heavily relies on raw data, which is usually collected from clinical trials. The FELIX device must be showing obvious improved results such that some KOL's have deemed a clinical trial not even necessary. Of course, clinical trials will still be mandatory to enter markets like USA and Australia, which are heavily regulated by FDA and TGA respectively, so I am expecting a clinical trial this year. A successful clinical trial not only allows MEM to enter highly regulated markets, but also positions MEM with raw data that proves without any doubt or speculation that the FELIX device is the best device available on the market for sperm separation.