While waiting for the final results and peer review to be published, which is beyond the company’s control, and I expected once published, will be pivotal upturn in the company’s worth as a scientific endorsement of our technology, I expect it will not be too far from the preliminary findings.
Putting aside the clinical trial, I am piecing together what was happening to the sales currently. From the prospectus, the first few batches of the Mente Autism devices were manufactured in Malta by MCL. I suspect there must be certain quality issues on the hardware that has caused stalling of the sales activities to Italy and other distributors. I also believe the company has sent in many extra sets of the devices for the clinical trial to replace some with hardware issues. Moreover, it was also mentioned by @bloat in his post about sensors dropping off, wifi issues etc. Probably the hardware issue has also made @Scotti not able to obtain a unit readily. This has also resulted in the decommissioning of obsolete stocks of $41,000 mentioned in the March 2018 4C.
This brings me to highlight the significance of approval from Italcert (4/6/2018 announcement). The improved Mente Autism designed by eemagine (27/11/2017 announcement) and according to http://presseportal.org/tag/aat-medical/ (Autism therapy device Mente Autism: From 2018 "Made in Germany"), is now developed and produced in Germany. It took that long for Italcert’s approval with a CE mark for European health, safety and environment protection legislation. The production of the next batch of the device is already underway.
Starting with Italian sales, on page 31 of the prospectus, contract with Promosalute includes an obligation by the distributor to purchase a minimum 8,700 units over an initial term expiring in July 2019. With an update on Italian Distribution Agreement (21/8/2017), even though the parties have agreed to vary the distribution agreement to commence in October 2017, the distribution agreement continues to require Promosalute to place minimum orders and complete payment for Mente Autism units over an initial contract term to mid-2019, with the potential for extension beyond this. Promosalute has committed to establishing three autism centres across Italy, with the aim of generating awareness on the condition, introducing Mente Autism to parents of children on the autism spectrum, and to evaluate the suitability of Mente Autism for their child under the supervision of the centres’ medical professionals.
Let’s see what has happened on the ground: http://www.mentetech.com/network/
Shows 7 German professional networks and 3 Italian centres.
Searching “Mente Autism” in Youtube gives us 6 new updates and promotions from the Italian network and 2 recent promotions from Greece.
Page 30 of this month’s Autismus.de magazine reported testimony of Mert’s case as one of the first recipients of treatment in Germany. (Sometimes radiate his eyes right, by Juliane Papendorf (Page 30 autismus # 85/2018)) https://translate.google.com.au/translate?hl=en&sl=de&u=https://www.autismus.de/&prev=search
I would also note that Autismus is one of Germany’s largest autism journals.
Despite all the doom and gloom going on in the share price movement, there are activities happening in the company. For financials of year end June 2018, I believe it is a washout, I will not expect the next 4C to show any sales, full year P&L will be ugly.
However, with the Italian contract in mind and I assume it has not changed, plus the ground activities happening, plus a higher production budget in the 4C, I got to expect 8,000 plus units of Mente Autism to be delivered and paid for in Italy in the next financial year. Assume Euro2,000 per set, it will be revenue of A$24m from Italy alone. (Whether clinical trial results published or not).
Financial year 2019 will be the year for NTI.
NTI Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
