Much HOCI is being sold for sure and there were estimations to what kind of revenue was possibly being generated. I’ve seen figures as low as $3.50 a gallon and as high as $17.50 a gallon.
Possible Monthly HOCI Sales
min (1 shift 5days /wk)
20 shifts@14000gals/shift=280,000gal @ $3.50/gal=$980,000
20 shifts@14000gals/shift=280,000gal @ $8.00/gal=$2,240,000
20 shifts@14000gals/shift=280,000gal @ $17.50/gal=$4,900,000
Revenue/Sales: No specific number in regards to sales and revenues were discussed for dissemination. As Gary put it, GM doesn’t release what it costs to produce a car, only what it cost to purchase it. What was stated is that sales and leasing of units was still the #1 generator of revenue but that he sees fluid sales surpassing this by the end of the year.
According to the 3rd quarter 10Q:
Product sales through 3 quarters $209,578
Equipment sales through 3 quarters $217,274
So Gary's statement is 100 percent accurate based on publicly available information.
How many machines are we talking about?
From distributors per Egold’s list 50+ (many have more than one machine)
From Hospitals 25+ (many have more than one machine)
How many machines were sold/leased since the last Quarterly that we can confirm?
PCT LTD Announces Additional Hospital Installation of Annihilyzer® Infection Control System (1) October 7, 2019
PCT LTD Deploys Initial Annihilyzer® Infection Control System (1) to the United Kingdom October 22, 2019
PCT LTD Adds International Distributor and Sells High-Volume Equipment (1) to Existing Customer as a Result of Heightened Demand March 13th, 2020
PCT LTD ANNOUNCES RECEIPTS OF NEW PURCHASE ORDERS FOR ANNIHILYZER INFECTION CONTROL SYSTEMS (2) IN NYC HOSPITALS April 14th, 2020
PCT LTD CONTINUES ACCELERATED EXPANSION WITH NEW HOSPITAL INSTALLATIONS AND FLUID DISTRIBUTORS (3) May 8th, 2020
PCT LTD Announces New Hospital Equipment Installations, Distributors and Agreement With Sapphire Disinfection Solutions (1) BUSINESS WIRE | 05/21/2020
So we know around 9 systems were sold or leased since the last Quarterly.
Trying to determine possible revenue from sale/lease of systems is virtually impossible due to the fact we don’t know what was sold and what was leased however we can say a system sold would generate higher short term revenue versus a system leased.
For this exercise I will use only hospital systems as they are generally leased.
Possible Annihilyzer monthly revenue:
25 Annihilyzer in Hospitals around the country and in the UK
25 units @ $8,000 = $200,000
HOCI sales using low number of $3.50 is $980,000
Annihilyzer leases $200,000
Leaves a $780,000 left for Distributors sales/leases.
So that again lends to the analysis that Gary is referring to reported data not information that we have been using in our current estimations.
I don’t know how much a large volume system costs so I estimate it around $30,000 based on what other companies are selling similar systems for.
What we do know is that the company is profitable for March 2020. They have cash flow to cover burn rate.
Revenues 2019Q1 $195,197
Expenses 2019Q1 $824,530
Revenues 2019Q2 $118,862
Expenses 2019Q2 $527,397
Revenues 2019Q3 $220,033
Expenses 2019Q3 $604,847
For 2019Q4 I will use the average of the 3Qs
Revenues 2019Q4 $178,030
Expenses 2019Q4 $652,258
Estimated yearly total:
2019 Revenues $712,882
2019 Expenses $2,609,032
Average monthly Revenues $59,406
Average monthly Expenses $217,409
So if we were profitable for the month of March our revenues would be more than $217,409 based on last years averages.
The Company has the following three revenue streams:
1) product sales (equipment and/or fluid solutions);
2) licensing (contract-based use of the Company’s US EPA Product Registration, returning revenue in licensing fees and/or royalties from minimum or actual fluid sales); and
3) equipment leases (under systems service agreements, usually 3-year contracts for the provision of the Company’s equipment and service of such, under contract to customers, with renewable terms).
HOCI sales are through the roof as well as demand. It will all be revealed in the upcoming financial reports.
What we don’t know is how the company is recording it from distributors as mentioned in the revenue streams are the product sales and fluid solutions counted separately. There are so many variables we don’t know however what we do know is PCTL is making money and growing.
The Pure and Clean news story speaks volumes of the HOCI sales:
In 2018, Pure & Clean’s annual revenue was $350,000. Amid the COVID-19 pandemic, you say sales of your natural disinfectants have surged in the last month. What were March sales?
It was equal to [total] 2019 sales, which were more than double 2018 sales. It’s kind of an interesting feeling in this time of so many people hurting with small businesses and even large businesses. We’re a great solution for what’s going on, for protecting yourself and then also for disinfecting surfaces and areas. Scaling to that is obviously something that you can’t prepare for and we obviously weren’t ready for."
I believe the reference is clearly to the annual revenue of $350,000 because it intentionally included the word total.
The article references natural disinfectants (HOCI being one).
The article talks about scaling.
The article talks about local demand and mentions working with some of the largest hospitals in the country.
It’s from individuals just wanting to get something to protect themselves. A lot of those individuals are people who are working on the front lines of the health care systems in town. A lot of people are in long-term care facilities that are taking care of a high-risk population. Honestly, our business right now, a lot of it is from all over the nation. Large companies reaching out that need to protect their employees. We work with some of the largest hospital systems in the nation.
The article talks about inability to meet demands.
We were supposed to be at the NCAA wrestling championships in March in Minnesota. I was supposed to go from there to Vision Expo East in New York and that was canceled. We were supposed to be at the Olympics this summer with our products. Team USA had already purchased product to be shipped out to Japan for the Olympics. Our sports line has pretty much been shut down, and our medical and consumer side is just crazy. We have to take care of our existing customers, and their medical side that are front line and we’re also working with some new ones, but we definitely can’t meet all the demand. The largest companies out there can’t come close to meeting all their demands. So, obviously a young, family-owned business like ours, we’re doing the best we can.
This article is all about HOCI and $700,000 Pure&Clean sold in March.
Their biggest HOCI item on their website is a 265 gallon tote.
It wouldn’t take too many of those to get to $700,000.
AI
