Reconciling Research Capital Corp projections with PRN Plans
I've been trying to reconcile the following revenue projections from Andre Uddin of Research Capital with what we know of PRN's plans for TULSA-PRO revenue:
These are the revenue projections from Research Capital:
$16.1 million in 2021, then more than doubling to a projected
$33.8 million for 2022,
$47.9 million for 2023,
$63.8 million in 2024, then climbing to
$71.4 in 2025 - 1st profitable year
I've created a spreadsheet using 10 treating sites in Q2, 2021, rising to 25 by 2022. I have the doubled sales and installation teams adding 7 or 8 sites per quarter in 2022, later rising to 10 new installations per quarter, with about 60 treatments per year per site gradually rising to near100 per year per site and a "price point of $7710 or more" per treatment - I used $8,000 even, assuming that in subsequent years they gain a little pricing power, or at least get an inflation raise.
I concentrated on the non-capital recurring revenue from TULSA-PRO treatments because we have considerable detail with respect to their plans for expanding that revenue and relatively little to go on for other revenue estimates.
For 2021 my spreadsheet has ~$6 million coming from this non-capital recurring revenue, then over $22 million in 2022, or 2/3 of the total revenue estimated by Uddin. My non-capital recurring revenue number for 2023 is $45.8 million, just $2.2 million short of Uddin's total revenue number. After that my TULSA-PRO recurring revenue numbers for 2024 and beyond are greater than Uddin's total revenue estimates.
I did not assume any boost for the acquisition of a CPT-1 code. I didn't assume any further growth in the sales & installation teams (other than them getting a little more efficiennt over time).
Perhaps Uddin does not expect them to be able to execute the plan as they've laid it out - yet his numbers for 2021 seem to have them firing on all cylinders.