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boston745

11/03/18 10:28 AM

#20742 RE: FS15 #20740

I'm not expecting much in regards to revenue until CTL sells off the inventory. However they didnt reduce their revenue 80% because the manufacturing costs Sintx will charge CTL includes G&A costs.
The calculation is basically COGS + G&A x 1.25 = CTL price. With no S&M, they actually profit if they stop pursuing R&D. With that profit coupled with CTL monthly promissary note payments, they can cover a nice chunk of R&D. The net result is reduced burn and reduced loss compared to before the sale of their spine division with similar revenue.

As far as I can tell CTL will take a loss in the beginning paying 50+% of it's sales price to Sintx. As CTL increases sales however the price they pay on a per unit basis drops improving its margins as Sintx admin costs are spread between more units.