The math? Can anyone come up with $6.6. million multiplying 400 X $500 X 12? With the launch of this new technology, Theralase is migrating the business from a one-time capital equipment purchase model, where they sell the systems for a fixed cost in the $16,000 range, to a recurring revenue model, where they will lease the systems to health care clinics, hospitals and practitioners for $500 per month, in perpetuity. With each unit generating on average, $10,000 a month for its customers, the new model is expected to substantially increase its market share for such devices worldwide.
The company is targeting $6.6 million in annual revenue from the first 400 such devices placed, in late 2014 / early 2015, providing a 20X return on investment for its clients.