I've talked about this here already and I thank jellyroll for...

I've talked about this here already and I thank jellyroll for taking the time to help me. You said that you "would be disappointed if we did not do US$50 million of contract sales in the next financial year". With the recent huge contract, I guess your estimates will likely prove too conservative. Hurray!

Recently there have been some developments that got me thinking.

CLINICAL TRIALS
Brad is guiding for the gross margins to compress in FY 2022 to "ensure that we have the technical infrastructure, the operating processes that support a much larger business".
He expects that the investment will bear fruits in the following years.

Although I love that, I wonder if investments in the technical infrastructure should fall under the general corporate expenses and not under the Clinical Trials segment (the operating processes, not so much).

HEALTHCARE
Regarding the Healthcare segment, I thought that it would be (almost) pure margin. But it doesn't seem that way.

In the first half of FY2021, Brad said that there were some consulting costs that shouldn't repeat in future periods. Strange because the company expensed the same amount in H2.

Now, for FY 2022, the management is (indirectly) guiding for costs of around $1.5 million for FY2022. Where do these come from? Could it be Japan as the deal states that the company will share profits (not revenues)?


Regarding all the services that Cogstate performs that Cambridge Cognition doesn't (like rater training, I believe), do you believe that this is something that the sponsors ask often? I mean, could Cogstate have some kind of commercial advantage by performing these services?

Cheers