New customers could also be included in the rentals segment:
- Equiment sales are outright sales of the product. I pay in full for the product, no more required.
- Rentals are when a customer agrees to rent the product over a set period.
- Subscription revenue is things like Specturcare. Covers the cost of data, monitoring of sites, maintenance/patching etc.
I much prefer the equipment sales in this case, as it helps with cash flow.
Once the ~$5m of operating costs are covered and there's no cash drain, rentals are likely the better option given they're higher margin.
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