PCT Ltd (PCTL)

[Evaluate]

you wrote:

I said it before and I'll say it again PCTL's flagship product the Annihilyzer (and large volume systems) was, is and will be the end game.

Can anyone explain why a hospital would have 7 Annihilyzer systems?
It doesn't matter because I'm confidant more orders are in the pipeline.

SNOWBALL EFFECT ACTIVE
I hope the company can keep up with upcoming orders.
PCTL is in a great position to disrupt the market share of contracts for Infection Control Systems with Healthcare and other industries.

I think you ask a great question, as to what could the reason be for a NY hospital to order 7 systems .... with some being used as part of some experiment/test?

Some thoughts:
* we do not know how big this hospital is ... perhaps they wanted to be convinced themselves of the effectiveness of the system before committing to the actual number of systems to best serve the size of this hospital
* I seem to remember that PCTL had previously indicated that they were starting to see a higher concentration of systems being used ... in part because the systems were no longer only being used for the patient rooms, but also for hallways, restrooms, lobby's, waiting rooms etc etc
* I believe that in addition, they will be using a few of the systems for some new, exciting reason that we can currently only guess about. Hopefully their experiment works out well, and then perhaps word will spread amongst other hospitals who will also order more machines.

PCTL's flagship product the Annihilyzer (and large volume systems) was, is and will be the end game.

I seem to get the impression that Gary Grieco feels the same way. For a while, I had the impression that perhaps the fluid production & sales by PCTL might be even more profitable (ie sell the fluid for $8+/gallon, and produce it like crazy, and "it must be very inexpensive to produce, so huge profit margins"). Well, based on recent Q1 & Q2 (when compared to all of 2019), the expense ratio to produce the incoming revenues has increased, which IMO can only mean that the profit margin on Equipment is far superior.

But keeping up with manufacturing of the Equipment is another good point you make, since it is certainly capital intensive.
Say that the machines cost $30K on average, and that they feel a need to produce say 100 machines over the next months (perhaps some of which would go to the UK, once the UK makes their large purchase decision) ... this would cost $3 Million. Of course this would come with a nice boost of Revenues too, but there is still the $3 Million capital outlay ... where would they get these funds? Hopefully they can line up some reasonable financing.

Side note for the UK: we do not know whether the UK would be interested in Equipment Leasing structure, or perhaps straight out purchase. Perhaps PCTL does not yet have the infrastructure in the UK to offer equipment upkeep under a Lease ... this could actually be favorable, if the UK machines would be sold at a profit, and then this profit would be new cash that could be utilized for the manufacture of even more machines.
Another side note for the UK: I still believe that this could be very favorable to PCTL financially, but I still figure that any profits will need to be split 3 ways: 1) PCTL; 2) PCT Europe; 3) the UK NHS distributor. But it should be all new, additional revenues/income, which would be a nice boost to the financials.