Anyway, I'm still not understanding why the burn rate is $25 million. How can 47 employees be spending $500,000 each? I ran a publicly traded company with 300 employees. Our burn rate was $50 million. And that included a $20 million TV and media advertising budget. Each employee costs me about $100k. I think Mela's burn rate should be closer to $5 million. I think they could make a handsome profit with a $5 million burn rate. But I have trouble seeing why their burn rate is $25 million and how they can make a profit at that rate.
For the record, I like the product. I'd like to see them be successful.
Interesting analysis of the loan. will have to give that a closer look when I have some time. I believe their burn rate is high because they are funding and retaining ownership of the systems they place. The $10,000 fee is a placement fee and covers training and supplies. To make matters appear worse, they are required to defer most of that $10,000. MELA is currently funding the cost of the systems which is in the $30k to $35k range but expected to drop. Once they have established a track record of demand and usage they should be able to get financing for the systems. They are also experimenting with other revenue models. depending on how that goes they may lease or rent the systems which should reduce their burn rate. They should also be able to significantly reduce the manufacturing cost as volumes and experience increase.
The $10,000 fee is a placement fee and covers training
Ok listen up Derms........grab the melafind gun, you point here and click here. 10 grand please, I have another appt.
will have to give that a closer look when I have some time
Gee Fish we can hardly wait for your BS analysis. Pontification on Mela since it was 12.00 dollars. What an expert!
"Interesting analysis of the loan. will have to give that a closer look when I have some time"
What fish is saying is that if mela comments, fish will unquestioningly repeat mela's argument.
The machines cost 35K per copy to produce which Dr Gulfo said that they are trying to reduce the cost of production. You can now go to the MELA web site and see the financial statement report of 2012 vs 2011.