IMO you are not reading this correctly. Goes to Total Market (TM) what % of that is your Total Addressable Market (TAM) and then what is your marketshare of that. I went through an exercise like that for TLG here.
Nothing assumes 100% of the market.
LOI for minimum 100M gloves and paid royalty per coated glove. Now keep it apples to apples and not oranges. Wholesale pricing for medical quality nitrile gloves between AUD$15 - $25 per 100 ... so for a nice round number US$0.10 per glove
So what's the pitch ... antimicrobial coat improves safety for front line workers by reducing the spread of pathogens??? Would you (i.e.. Gov't) pay for example US$0.01 per glove extra?
I'm phrasing it that way because perhaps this is a competitive advantage that allows this glove maker to sell more gloves. Therefore as long as ZEN are happy to collect US$0.01 per glove and manufacturer can pass along the cost and buyer is satisfied with the additional feature then everyone is happy.
The global nitrile gloves market size was valued at USD 3.12 billion in 2019 and is expected to grow at a compounded annual growth rate (CAGR) of 14.1% from 2020 to 2027. (by Grandview Resarch)
100M gloves at $0.10 wholesale is $10M ... which on the above TAM is ~ 0.28%
and just $1M for ZEN ... but little known on manufacturing cost of the solution and scaling.
At this point I am assuming they (ZEN) have done their research and worked "on the solution that the company wants “ and by company I mean the customer. Just the same as I do for TLG.
TLG Price at posting:
$1.41 Sentiment: Buy Disclosure: Held
(20min delay)