138 devices + approximately 1/2 of the 140 "highly interested" potential ones = approximately 200 devices.
200 devices x $10,000 installation fee = $2,000,000 for placements
Derms use it 2 days a week, once per hour, 50 weeks a year x $50 to MELA X 200 devices = $8,000,000 for usage
So, even $10M total revs (which would be 17 x higher than current rate!) do not stem the $24M burn rate.
Installations slowed quarter over quarter. Current market cap is $45M versus $0.5M annualized revs.
Please, seriously, tell me what I am missing.
I think you are exactly right. The current model is not sustainable. Incremental improvements to usage rates don't fix the fundamental business model problem. They need 1000 units in the field all used frequently, so the narrow minded focus on usage rates to the detriment of more placements is not the right strategy in my view. A potential acquirer can now just sit back and wait for the valuation to continue to nose dive. Any new financing terms will likely wipe out current investors. Slow and controlled launch...? Botched launch, more like it.