PCT Ltd (PCTL)

[aandt]

While there was an initial surge in Q2 of fluid production and sales (we will see to what degree soon), the sustained uptick of activity happening is what will really pay off. Keep in mind there were only a handful of distributors at the beginning of the year. In the podcast with Gary on June 22. I believe he said there were 7 officially signed distributors. So since that time (near the end of Q2) we have added 17 officially signed distributors. Each of the new 2020 distributors are at various stages of development. Some are not actively producing yet, some are. As they come into production, the revenue from royalties will continue to grow at PCTL. I also expect to see a signing fee/up front machine cost that will show from each of them. A few of them we know are actively producing, like BOX Bio, eOn Mist, Proguardeum, Digital Ally, etc. I expect the wave of distributor revenues to match or exceed whatever the fluid numbers were from Q2. Also... machine leases... those who are producing should be paying lease fees on the production machines. We do not know the details on how these contracts are constructed, but this is significant growth.

So all of that to say, I don't expect a soft Q3 but rather a sustained and growing surge of revenues building into 2021.