BioCloud Revenue Streams Good Afternoon One & All,
Looking at the recent NRs, it certainly shows that management is on track to commercializing the BioCloud Analyzer by November month end.
Looking at the revenue opportunities for BioCloud, IMO, I see several methods of working with Clients of the BioCloud. As follows:
1) Buy only
2) Buy & Lease
3) Lease only
With using leases, it provides even more $$$ , more clients plus clients wanting even more units due to lower monthly cost structure. Also with leasing, IMO, can provide regular monthly cash flows that are helpful in forecasting future revenues & corp growth/opportunties.
The following are some of the benefits of leasing for parties involved :
ADVANTAGES OF LEASING
BALANCED CASH OUTFLOW
The biggest advantage of leasing is that cash outflow or payments related to leasing are spread out over several years, hence saving the burden of one-time significant cash payment. This helps a business to maintain a steady cash-flow profile.
QUALITY ASSETS
While leasing an asset, the ownership of the asset still lies with the lessor whereas the lessee just pays the rental expense. Given this agreement, it becomes plausible for a business to invest in good quality assets which might look unaffordable or expensive otherwise.
BETTER USAGE OF CAPITAL
Given that a company chooses to lease over investing in an asset by purchasing, it releases capital for the business to fund its other capital needs or to save money for a better capital investment decision. TAX BENEFIT
Leasing expense or lease payments are considered as operating expenses, and hence, of interest, are tax deductible.
OFF-BALANCE SHEET DEBT
Although lease expenses get the same treatment as that of interest expense, the lease itself is treated differently from debt. Leasing is classified as an off-balance sheet debt and doesn’t appear on the company’s balance sheet.
BETTER PLANNING
Lease expenses usually remain constant for over the asset’s life or lease tenor or grow in line with inflation. This helps in planning expense or cash outflow when undertaking a budgeting exercise.
LOW CAPITAL EXPENDITURE
Leasing is an ideal option for a newly set-up business given that it means lower initial cost and lower CapEx requirements.
NO RISK OF OBSOLESCENCE
For businesses operating in the sector, where there is a high risk of technology becoming obsolete, leasing yields great returns and saves the business from the risk of investing in a technology that might soon become out-dated. For example, it is ideal for the technology business. TERMINATION RIGHTS
At the end of the leasing period, the lessee holds the right to buy the property and terminate the leasing contract, thus providing flexibility to business.
Best of wishes to All, good health,
Sincerely,
Topseeker
P.S. Thanks to the KNR Team that are working 24/7 to ensure the successful rollout of the BioCloud. Topseeker