Southoz, I forgot to speak to your point on OTC selling through...

Southoz, I forgot to speak to your point on OTC selling through pharmacies and supermarkets, which I think speaks to the lack of reinforcement in the business model.

By comparison, take blood pressure devices which are sold OTC at pharmacies at few hundred $ each. I don't think they sell many at that price, but with the competition they're probably near marginal cost and marginal profit. It's probably hard to make something that big and mecahnical cost less. And they probably don't sell that many to people that have pre-hypertension or even stage 1 hypertension on account of the cost, despite the potential need.I reckon it would be the same with Asthma..... But if the cost was $15, I'd be much more 'impulsively' tempted to buy it.

Then the key is about getting it exposed as widely as possible, even though woolworths or pharmaceutical chains would charge a substantial rent for the privilege. It doesn't matter, because at $15, with an approved OTC medical device, and the convenience of buying it anywhere - anyone with Asthma - be it bad asthma or otherwise, would "probably give it a go". That sweet spot - otherwise known as the 'customer value proposition' is the point at which you're creating value for me - and you're starting to get market penetration. In a "normal" company, you would work back from there to determine what the costs need to be, which in turn determines what scale you need to make a profit. And so you go about engaging with pharmacies and such first, before you scale up, to try and lock that scale in for the whole thing to work. Also remember, they make money on both the sale of the device, and rent on the cloud server for medical records. By selling it at $15, Isonea might only make a few bucks on the unit sale, but the real money is made on cloud storage once they're hooked. It's the repetitive, ongoing and provides very high ROCE. Obviously, that doesn't work unless there's some basic uptake at the beginning.

At the end of the day, your way with medical community engagement is just as important as price setting and distribution tactics. Ultimately, a coherent strategy would adopt both these approaches which serve to reinforce each other and the point is that they haven't. And this stuff - it really isn't hard - which is why this whole thing is so frustrating and sad.