LED Medical Diagnostics Inc LEDIF

Update from the Bloom Burton Event

[ValueCap]

I was at the Bloom Burton event today and saw the presentation from Mr Gane and Lamar Roberts was also there.

The execution looks very good and the company is in a much better position than a year ago.

They went from 600 or so SaaS revenue generating locations a year ago to 1200 as of April with only 3 lost. Each generates about $200 USD/ month. 

They’ve mostly been signing DSOs. The largest is 365 practises.

They currently have the US Army, US Navy as software clients and there is supposed to be some consolidation which can allow them to sign the Air Force, which we were told can boost revenue by additional 15%.

They are also working on securing hardware contracts for the entire military with Tuxedo digital sensors and Velscope, which after being pushed Lamar stated could be worth $100 million, with sensors needing replacement every 3-5 years.

DSOs alone account for something like $17’500 dental offices.

Velscope itself is expected to be flat but they were talking about ‘re launching’ in light of higher oral cancer rates and new screening initiatives.

The consumables from Velscope are recurring at about 1.3 million/ year, revenue from Velscope itself being 3.34 million/ year.

Margins are 61% from last year. Given main growth is software side, will continue to rise.


Company is ebitda positive now which is great of course.

A SaaS business itself should have what, a 4-6X forward revenue multiple these days? 

I thonk that makes the business attractive, as long as they keep adding to XVweb. Hardware to the military, Air Force software, AI/ Deep learning add on would be gravy too of course.

Also Gane is the only one doing IR now because they wanted to cut useless spending to get to positive ebitda. They plan to hire an IR in the near futureZ

[Kimsamkes]

Excellent piece of research Value Cap, very informative for us long suffering shareholders. I have been a long term shareholder in this Company but have never lost faith in the narrative even though my first shares adjusted were purchased for  $5.30 cad. I have averaged down considerately with my last purchase at 36 cents per share but still well in the red. Sooner or later the market will

[deepthinker63]

Thanks for the excellent report.  The investor presentation showed just under 1100 sites.  

[deepthinker63]

It’s really criminal that Delta Dental and the others don’t cover Velscope.