Agreed. Realistically they need to sell 4000 a quarter to roughly break even. That is .13% of the Australian target market (3,000,000). The % becomes very small when looking at euro / US market and they have only just entered the market there.
Entering the US market has come at a good time. The aussie dollar is around 78 cents US and will shortly start marching further south. This obviously makes it cheaper for US customers to buy the product.
It is a shame they waited to do the trial now because I would have liked to have seen all the private health insurance companies offering rebates for the pericoach and there is no guarantee that will happen without it.
I would also like to see them get some distributors on board and really start pushing the product rather than building an internal sales force. Less $$$ up front to start with and you can always add more staff once you have the $$$ flowing in. They could even discount them by 20% and sell a bulk order to start with as a one off to;
1. Get some cash in the door to prolong the need to raise capital
2. Get the product out into the market as the marketing strategy relies on word of mouth and recommendation. Get this product into the hands of proactive women whom are the most likely to actively use and promote the product!
Still, there is alot I do like regarding what they have done and it is a credit to them getting US FDA approval so quickly.
May still need to raise capital but if they do hopefully it will be on the back of some big % increases in sales.
ALT Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held