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DougOTC

04/14/16 8:34 AM

#21255 RE: The Gentle Wolf #21253

Your analysis is flawed. This isn't six months ago. There also are C warrants. Things change.

My daughter has a birthday a week ago. At this rate over the past week, she'll be 52 years older by next year using your last 6 months argument.

It doesn't work that way. For one, they aren't selling widgets where you have to sell last months inventory plus additional units each month to grow sales. They are selling what amounts to access to their menu of tests. Once you agree to take a machine, you enroll in their diagnostic "service" and as the menu grows, the sales already made grow in addition to the new distribution of diagnostic machines.

That means linear projections don't work. If they had 100 units deployed with 1 test and then sold 50 more but then offered three tests, there sales would not have grown 50% (150), they would grow closer to 350% (150x3=450).

Obvious the end growth number would be somewhere in the middle since this is a simplified model, but it would still not be linear.