What Consumables Could Mean to EMVision in $

EMVision is the highest quality company I own.

First class management, a first class technology, and a major prospective market which is crying out for exactly the technology and product which EMV is aiming to provide.

I also spotted it quite early so have been holding from shortly after it listed on the ASX and so have followed it's developments and story intricately for a number of years now.

It has done very well for me so far although I believe we've really seen nothing yet (in terms of share price performance.)

A couple of points I cobbled together from the recent South-West Connect ASX Showcase 2022 presentation, the most recent quarterly, and also from the history of Nanosonics (whose excellent business model EMV is seeking to emulate) may give us an interesting look into future revenue and gross profit possibilities when it comes to EMVision's consumables....

From the most recent presentation....

"we also have a consumable annuity revenue stream... that I've learned from Nanosonics that these sort of consumables are actually really valuable so you want to be able to clip the coupon for every stroke scenario or patient scan, and we have both a cap and a liquid consumable and the liquid is used to inflate the membrane to fit the head and the head size and we're looking at approximately $25 US dollars per scan for that." (emphasis my own.) -Dr Ron Weinberger

From the most recent quarterly.....

IDR Medical commissioned to explore unmet needs in stroke care and assess the US market opportunity; uncovered valuable insights

"An assumed scan volume of 5 scans per day per system at stroke centres was considered too low if being used for routine monitoring, with closer to ~20 scans per day considered reasonable." (emphasis my own.)

We now can form some kind of idea as to what $ figure each Gen 1 device may be generating per day (assuming each scan = 1 new cap which I've heard Dr Ron mention in a previous presentation and US$25 = AU$38.85 at current exchange rates.)

So $38.85 x 20 = $777 per day per machine in consumable sales!

On a yearly basis we have 365 x $777 = Au $283 605

and that's for 1 machine!

At 10 machines we'll be generating $ 2 836 050 in consumable sales....

And at 100 machines we'll have annually recurring revenue of $28 360 050

(assuming the variables of prices for consumables and scans per day per machine I listed above become reality.)

I wont venture an estimate at how much of that revenue will flow to net profit for EMV although if we take as an example the gross profits earned from the consumables which are used by the Nanosonic's Trophon devices the gross profit % is at 90% or slightly above....

If we are able to replicate this (Nanosonics gross profit % from its consumable sales) then .9 x $283 605 = Au $255 244.5 per year, per machine in gross profits from consumables.

Very impressive.

And first sales could be in around one and a half years.

We have some very smart and well informed people on this forum so if anyone sees any problems or errors with my reasoning please point them out!

Thanks.