I think my expectations were aligned with the commentary provided by the management in the lead up to the quarterly and an expectation that it would materialise some improvement int the share price, built on the back of a substantial change in the book with RYD and TM.
However, this has not occurred and people have gone elsewhere and will continue to do so until management can provide clear cut announcements with something new and substantial.
The news inflow from the last 12 months has been the same, repetitive information. As I have said earlier, anyone looking to invest could read a quarterly from 12 months ago and read the exact same information from the last one. They could have basically copied and pasted the information.
What we know:
- We are working on a new FFN device for Hologic. It wont be in market for another 12+ months at best. So we are reliant on the speed on which they develop the test to ensure ongoing revenue, outside of this, we have basically received what we are going to.
- Febridx is available globally but uptake has been slow. The US market isn't as forward with the uptake as it was sold to be. Without the CLIA waiver, this is not going to shift as substantially as they indicated.
- Viradx is the money maker from the product side and is going to cease anyway, so there is no point really talking about ongoing revenue from this.
- Half of their services revenue from the last quarter was literally the Hologic revenue already in hand, their accounting methods just improved the quarter. Which means without Hologic, they are generating around $1.5Million per quarter in services revenue.
They need to ramp up the sales of the product to at least cover the cost of Hologic's services revenue per quarter just to stay afloat without more raises. If they can do that, then things look more positive. If they generate a new services deal outside of the current, then that is a bonus and will make things more positive.
If they cant and we are just sitting on our loreals for the next 12 months until FFN does something and CLIA waiver kicks in, then the SP is not moving and your hard earned is going to be sitting in lieu slowly being chewed down - therefore making it harder to break even or profit which is the point of what we do.
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