Coviu spent 9 months trialing, integrating and testing ResAppDx-EU. Phenix spent 3 months trialing, integrating and testing ResAppDx-EU. After spending all these times and resources it is unthinkable for Coviu and Phenix to sign a 2-year licensing agreement UNLESS they're both thoroughly satisfied with the efficacy of ResAppDx-EU. In addition, they must also be thoroughly satisfied with its integration to their legacy platform.
If we assume that all the above risks are mitigated, then what's left is the question of the uptake. How much annual revenue could potentially be earned through these 2 licensing agreements? Let's say Coviu and Phenix does a combined 30,000 consults per day, of which only half is GP consults. Let's say only 30% of the GP consults is respiratory related. And let's say ResApp charges $6 per use. The daily revenue comes to $27,000. This translates to $2,430,000 per quarter, or $9,720,000 per annum. Decent enough, at least for a start.
Outside Australia, we have economic evaluation pipeline with UK, German and Kenyan hospitals, and an MOU with RB. No doubt these will take time, but it's entirely reasonable to expect some eventuation by Q1 2021. In the meantime, revenue from Coviu, Phenix and SleepCheck should be sufficient to provide working cash flow for ResApp. Who knows, Asia might join the party soon.
Finally, Tony Keating coughing up $1,375,000 of his hard-earned money into converting his options is nothing but a vote of confidence in the Company. I seriously doubt he will sell them in the near future. He had that chance when the share price was much higher. He didn't take it.
RAP Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
