Keep in mind they stated the shift to focus on ecommerce and OTC sales. OTC isnt approved yet, so if they go and build 40,000 units when they dont have the market to sell them in, it will be more expenditure that we will all complain about too.
10,000 units in the hands of clinicians is good annualised revenue and the best marketing you could hope for. 10,000 doctors recommend using the Pulse device, buy it online here? Sounds good.
Meanwhile the OTA upgrade ensures the medical grade analysis remains uncorrupted and protected.
It feels like they probably were overly optimistic initially, thinking theyd be OTC approved from the get go, had a few reality checks which have forced them to change strategy, tried to adapt on the fly, but all of these detours have forced them to create an even better suite of products which they now have to tactically deploy for want of available funds.
For sure the risk to reward ia being pushed to the limit here, squeaky bum time no doubt. Sweaty armpit time.
I'm not happy with the journey but I feel like the destination is improving with each forced adaptation.
If I were to take an educated guess, it would be that perhaps this adaptability could be the key to why the group feels that the directors have earned their performance bonuses? But that is pure speculation. Maybe they are just greedy pigs with nose in trough too. Either way, we won't know until the fat lady has sung.
CDX Price at posting:
6.5¢ Sentiment: Buy Disclosure: Held
