This is a perfect example of not knowing how our business plan handles such transactions. If we substituted Ford for Annihilyzer we know that a car dealership would pay in full for the Ford, and whatever they made in leasing or selling it would be paid to the dealership.
Is Sanitis paying the wholesale price to PCTL, as a car distributor would to Ford, or are they acting as sales agents for PCTL, and both receive income from the lease of the equipment by the hospital.
If they're paying in full, PCTL would receive the money up front, but no further income from the hospital installation. If they pay nothing, they would share in the hospital's lease payments, but we don't know the split. Of course it could be something in between.
Many here have made it sound like PCTL is receiving about $7000 a month for the lease of the equipment in most hospitals, yet many of the placements in the hospitals have been by ACE. ACE must be getting some of this money, or they've been paid for the sale somehow. Either that or ACE is receiving everything, but paid PCTL in full when the units were ordered. Does anyone know precisely how this is being done.
If I remember correctly Sanitis is a subsidiary of ACE so this would all fall under their agreement with ACE, am I correct about that.
Gary
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