Arrayit is located in a commercial area of the Silicon Valley. The structure looks to be about 15000 sq feet. Mark stated that there are about 10 people working there. But that there are also 2000 sales reps on the street as evidenced by 500 plus portal players. Appears that he gave everyone the day off as only Mark and one other were present. Was greeted warmly by Kim (share owner) and the resident blood card administrator. Mark was right there and was also warm and engaging. Visit started with an short explanation of the science behind the micro array. To put it simply, this tech is a miniaturized version of what the big boys like labcorp and quest do. Mark indicated that this tech is 100x smaller than the major players in the space. I would agree. Very impressed as to how it works. <br /> <br /> For those of you concerned with efficacy don’t. It appears legit... clia certification, other various licensing, Medicare/Medicare endorsements, and the icing ...we had a quick view of the end of year clinical evaluation test results where they passed with flying colors. I’m not concerned with the legitimacy of the testing or results. <br /> <br /> Inside of the clean room lab we viewed all of the equipment used for the pinner and allergy tests. Stacked next to it was a pile of patient tests that were in work. It represented a lot of revenue. He showed us the specialized glass slide the samples are applied to. Each cost approx 10$ the r and d however was approx 60 million. The micro array itself is a serious money maker it has the capacity to do thousands of results per hour all day long. Very impressed. <br /> <br /> The miniaturization of blood testing was clearly on display and it is apparent that the revenue potential here is stunning. This small space is set up to do the testing and results that other competitors would need huge space and multiple people to accomplish. <br /> It stands in stark contrast. The process here cannot be understated. Arrayit has stepped into a future of automation and accuracy that as far as I understand is unmatched. <br /> <br /> That said my personal takeaway from the product side here is very positive but the elephant in the room is the CE. I asked how the company allowed the accounting to get so lapsed. Mark stated that their previous outside accounting firm, Moss Krussik (spelling?) were basically shutdown due to a regulatory issue with a Chinese company (not involving Arrayit) thus leaving Arrayit in a lurch. 2016 they hired RBBB. May 2017 RBBB begins and May 2018 ends data collection for past due fins. This begins the 8-12 week per year rebuild of the fins after data collection. Mark stated the data collection phase was brutal in that even a 5$ transaction needed proof. Mark stated that RBBB took such detailed approach due to the CE and feel that they needed an end result will be beyond reproach. Makes sense. <br /> <br /> Delay of fins appears to be the 1st quarter 19. My bet is all the rest is done. Q1 19 got problematic due to revenue reporting from the billing for the allergy test. Complicated, as it comes in various flavors, Medicare, insurance providers and out of pocket. It is almost like they were ill prepared for it all at once. My guess. <br /> <br /> Tweets. An outside marketing firm does them, Arrayit approves. Regulatory requirements from both the SEC and FINRA are taken in to serious consideration here as the liability consequences are bad. Tweets in my view are LEGIT. <br /> <br /> Mark feels that the relationship with the SEC is positive and sees no adverse action enroute. <br /> <br /> I have said this before, this CE is our diamond! Without it none of us would be here with these holdings and this opportunity. When it is removed ... it gonna go boom. Mark has much more at stake than all of us combined. My impression is that he is a brilliant scientist and has put forth an amazing technology. He is being cautious with moving this thing out of the basement and we should be patient. The plan seems to be one that changed from one fin at a time to a big drop including Q1 19. This will deliver the greatest impact. He again stated...allow me to paraphrase “I ain’t selling this bitch for less than 10$ a share” <br /> <br /> Mark also mentioned 2 million/week revenue is an underestimation but a safe statement... take that for what you will. My opinion, it’s way more Q1 will show. Don’t discount all of the other streams of revenue either from the original core business or pinner.
