Replies to post #12731 on CytoSorbents Corporation (CTSO)

[orangecat]

We have had hope's of that exponential increase in sales, but 80M in 3-5 years is a steady 20% Q over Q growth.

[eskay1954]

I still think with the expansion of the company it is puzzling why Chan has not expanded the MGMT team, That is a must with a growing company,I always have this feeling that a piece or 2 of the puzzle is missing and I am not sure why,But usually when I get this feeling with a small bio it is usually not good sign and I could name a plethora of companies I have had with this feeling,But I hope I am wrong, Actually I don't invest in Bio's anymore because its a toxic sector and CTSO is my only Bio, but just 10 percent of my portfolio

[fantomphan]

Thank you for that post. I couldn't have written it better. Step back and take a deep breath. This will have volatility but I think it will continue to be 3 steps forward and one back. Yesterday was a head scratcher and I was upset too. But nothing has changed. Not that I can see. In the end, we win. How much? Dunno, but we win.

[orangecat]

You don't think management ever suppressed the share price? There was a wall at $8 for a long long time. There was also a success fee triggered at the $8 level. Hmm, what was the average sale price of the most recently report ATM sales. I'm pretty sure it was $7.97. If it walks like a duck and quacks like a duck, it probably isn't a chicken.

[techxen]

Thanks for bringing the focus back to the big picture.

There are not many CEO's that have taken a company from development stage into commercialization much less ones that kept the financial fundamentals of the company strong while maintaining minimum shareholder dilution. Comments and attacks about Dr. Chan seem to come out of the woodwork whenever there is an unexpected hit to the share price. I for one am glad that the management team remains focused on their strategy and is executing on it, albeit at what appears on the surface at the expense of 'exponential growth'.

I was traveling this past week and not able to listen to the conference call but in reading through the transcript today, there were so many great nuggets of information that they seemed to have gotten overlooked due to the drop in the stock price, including:

• Very well capitalized, with a healthy cash balance of $25.3 million (sufficient to fund operations and clinical needs into 2020)
• Expansion of the inclusion criteria for REFRESH II which should improve operational aspects of the patient screening process enhance (accelerate) the rate of enrollment
• Record sales quarter with annualized product sale run rate of approximately $21 million, as compared to approximately $12.2 million just 1 year ago
• Management (normally very conservative) is "very optimistic" about continuing sales growth, particularly with regard to the second half of 2018. (read into this what you will)
• Narrowed operating loss as defined to approximately $300,000 and very close to operating breakeven
• Sales are developing into "more of a pull market versus a push market" and seeing a lot of activity, a lot of interest from clinicians, not just in Germany but in other parts of the world (this point is important as reorders are not only accelerating but increasing, mostly due to clinical and real world evidence the device works)
• Blended gross margin of 74% based on old manufacturing facility, and is expecting to improved in Q3, then again in Q4 and into 2019 (Medtronic has one of the highest gross margins in the medical device space of 68% as of their latest quarter, compared to an industry average of 59%)
• Completed all the tooling for the Hemodefend project and have begun to do essentially the validation product builds. With those validation builds will start the clinical build for the product, which will be done later this year. (from what I have read in the past they can also start commercial manufacturing for Hemodefend in the new plant and if they are able to sign a licensing or distribution partnership they can always outsource the manufacturing of this product)
• Able to double manufacturing capacity to support a $80 million thresshold with less than a $100,000 additional capital investment (how many other companies have you seen build and get ISO-certified a brand new manufacturing plant and can do this?).

While sales growth is important, a lot of investors neglect to see what is happening on the cost side of things. Operating profitability is just as important to the management team and thus you have seen them be very strategic and excel at managing the growth and incurring cost only in areas where there is a direct benefit to that aspect of the business. This will ultimately make the company even more valuable. I posted a little about this "balanced growth approach" here: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141425194

"Now, our interim target is to get the operating profitability. We think that that will be an important inflection point for our business, and we will significantly cut down on the cash needs of the Company, but also make our company much more attractive to a wide variety of different interested groups."