otcbargains undervalued stock board

[FrankLind]

Investor presentation here.

32% increase in revenue.
37% increase in gross profit
Net Income of 57,000
Veneer business is breakeven and stable.

Balance sheet.
Fortis debt is now gone.
Excelsior debt can be paid through existing assets and/or an inventory deal.

What the balance sheet does not show is that have now received the second part of the China sale (1.15 million in cash), http://www.reuters.c...article/2957961 so they have a lot more cash than what is shown.

Cash dropped in this quarter due to an increase in a/c receivable and the paying down of the Fortis debt.

Two new lines, the implant business being introduced in Europe and China as well as SmileMeApp will increase revenue in the near term. SmileMe App will be significant contributor in December quarter.

SmileMe App (14.46 of presentation)
1. Awareness part, 14 questions, asking patients about their smile.
2. Possibility phase. Convince patient in 30 seconds how to improve by showing new smile on a screen. Different parameters to adjust look.
3. Solutions - veneers, implants, crowns or bridges, invisible braces. These are animated so patient can see exactly what they will look like before they are put on.

The SmileMe is a revenue generator for dentists and labs.

How to make money off this?
1. SmileMe will be on every Condor that is shipped. Free to use for a limited time. After that, can purchase.
2. Separately from this, SmileMe has regular distributors selling it now.
3. Speakers use SmileMe in presentation to market their own products in al dental lectures. Give speakers coupons to dental audience, from which they can download the software. Speakers get 25% commission if coupon redeemed.

Retail 2000 Euro. 25% commission to Condor if downloaded via the Condor.
Distributors get 50% commission

Margins on SmileMe are close to 100%

Veneer database. (by end of year)
Heart of veneer business. Receive scan and it is imported into software. Software will search for perfect fit.
For River 8 (early veneer line)
Veneer size of 20,000 unique veneers.
Find fit. Press button and it goes to labs.
Revenue model is a usage fee - royalty for dentists
Revenue model for labs is a subscription fee.
Not disclosing prices yet.

A few other digital products currently in development.
Overall goal is positioning company for digital dentistry.

Overall: Company being transformed from logistic-centric veneer shipping company to being more digital with Condor scanner and veneer design database. No one has a veneer database anywhere near their size and range.

China
Continues to grow.
Two more clinics by end of year.
Begun to sell implants in Beijing store. (i.e, offering an additional service on top of veneers)
There is huge potential for an implant market in China. Early days though.

Condor launch still not ready. Condor distributors are already signed. Condor developers believe around 60 days until final completion. We'll see.

Liquidity.
I have seen some good size offers in the 34c region. Not sure how long they will last or if they will be pulled.

China IPO exit 2015/2016 still on track.
Valuation of their remaining China stake is 8 million dollars.
REMI entire market cap is 6.8 million.