Beth Israel Deaconess - Revenue projection

With the introduction of the new annual subscription agreement fee (ASAF) model in the recent investor webinar, I put together some figures for the first major customer, Beth Israel Deaconess Medical Center (BIDMC). This is my interpretation only, please let me know if your figures differ or you identify mistakes.

Some notes:

• Although BIDMC is fully integrated, it is not yet a paying customer due to a contra agreement (use of Echosolv in exchange for services related to the health outcomes study). As a result, I don’t expect any cash flow in the March quarter. The June quarter may see a small amount, but with the 90-day free trials in place, it’s unlikely. The first revenue should appear in the September quarter, either from the misc code or potentially the Cat 3 code if approved. Would be happy to be proven wrong on these points.
• The previously advised split of the reimbursement between EIQ/customer appears to now be void. Use of the software will be free to the customer as reimbursement covers the cost. For the customer to make money on the use of the software the onus is on them to improve the average approval rate of reimbursement thereby generating excess reimbursement revenue above EIQ's ASAF which they will keep.
• I've used the top end of the AS reimbursement being $150 USD though this can vary.
• I've used the total Echos per year performed by BIDMC though this may not be accurate as I'm not certain if they would all relate to AS.

	MISC CODE
1	BIDMC Echos per year	30,000.00
2	AS reimbursement	$150.00
3	Misc code avg reimbursement approval	30.00%
4	Number of Echos potentially approved for reimbursement	9,000.00
5	EIQ annual subscription agreement fee	$1,350,000.00
6	EIQ monthly fee	$112,500.00
7
8	CAT 3 CODE
9	BIDMC Echos per year	30,000.00
10	AS reimbursement	$150.00
11	Cat 3 code avg reimbursement approval	50.00%
12	Number of Echos potentially approved for reimbursement	15,000.00
13	EIQ annual subscription agreement fee	$2,250,000.00
14	EIQ monthly fee	$187,500.00
15
16	CAT 1 CODE
17	BIDMC Echos per year	30,000.00
18	AS reimbursement	$150.00
19	Cat 1 code avg reimbursement approval	90.00%
20	Number of Echos potentially approved for reimbursement	27,000.00
21	EIQ annual subscription agreement fee	$4,050,000.00
22	EIQ monthly fee	$337,500.00