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  • usma1992 usma1992 Mar 28, 2013 10:45 AM Flag

    Breakeven analysis

    First, there monthly cash burn is about $400K.

    Assuming they generate about $5K net profit for every device sold and $10 profit for each disposable what is our breakeven point.

    For each device, I project 10 patients a day at $10 a pop... or roughly $100 net profit daily per machine. Assuming 20 working days a month. Each machine in the field should generate an estimated 2k profit for GTHP.

    Right now they have 10 in Canada with another 20 on the way to Europe in the following quarter. Which basically means they should be generating $60K a month toward the $400K cash burn. Or another of looking at it, assuming no money generated from the sale, they need 200 devices in the field for cash flow breakeven.

    Depending on the launch and initial response, I will be interested to see how quickly the ramp up occurs. I think they have $30M in distributor agreements over the course of the next few years. I have it at around 900 potential units.

    We shall see... enjoy

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