I wouldn’t say crude, but I would say you’re missing the bigger...

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LachieDos

13 Posts.

05/02/24

12:29

Post #: 72240265
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Originally posted by elpassive: ↑

Slow and steady to the next cap raise but all jokes aside I am concerned about the cash position. From the webinar and the quarterly results it looks like the team is going all guns blazing for the fda approval. The major concern is that if they are doing that, why are they increasing capex to expand to international markets? When I mean international, I am referring to Europe. I just don’t see why you would want to spend the money now and instead defer the expense for maybe next year. It’s gonna be a rough capital market environment to raise money. As per tadpole, they would have like 12 weeks of runway. If I was running the ship, I would focus on the fda and maybe the children’s app without spending too much resources. The age care business should grow naturally and it is well run. I maybe crude, but maybe consider increase the price of the software license?? That would lead to churn but it’s offset by the revenue gain.

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I wouldn’t say crude, but I would say you’re missing the bigger picture. The team seem very confident with getting FDA approval, and they are taking their time to get it right. Already have partnerships lined up for roll out and implementation with a target of 2m beds. Roughly $50 revenue per bed per year? Implementation is key.

Simultaneously, why wouldn’t they be out exploring other options (internationally) to continue increasing the # of bed licenses, which leads to higher implementation (which we know takes ages) and will ultimately result in more revenue?

Sentiment remains at buy, suspect the CR will be in Q4. Would love some positive news (DHSC 18k beds) to be announced before then

PCK Price at posting: 3.2¢ Sentiment: Buy Disclosure: Held
9 Upvote

0 Great analysis

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