GREY:TSTIF - Post by User
Comment by
MarylnMansonon Mar 05, 2019 9:17pm
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Post# 29447155
RE:RE:RE:RE:It doesn't matter what TOS reports for Q4
RE:RE:RE:RE:It doesn't matter what TOS reports for Q4good post newdant - my point is that given the business model is changing again (no longer selling through a distribution partner), Q4 will be very important to look at as the delta on the selling price will have tremendous impact on how soon this company will need to finance.
Just look at your expectations for sales in the quarter (which i think are light for units but probably around right on the revenue), but assume that the company gives away 50% of the units (as dr wong mentions) in return for higher per cycle economics. Your ASP goes from 100k to 50k and that would impact the cash burn and the timing of financing. And the trade off for higher consumables revenue is off a much lower base 25k a year and will not offset the decline in ASP from a 100k sale quickly enough to prevent dilution.
In this case the company could be placing units but still have a serious need for financing. Some investors seem completely oblivious to this and are focused on management promises of PO's and are missing the boat