My only concern with the MOU is when does it become a legally binding contract? From the announcements the company has received the first 500k order; and should have received payment for this (50% on order & 50% on receipt of goods). They should have also received a 2nd order - given that the MOU was for 500k kits per month. No announcement has been made to say this has been received.
Given the company has very high expenses of $5m pa even if they don't sell anything - the ability to get to a break-even point/profit in the short term (and the SP to be re-rated accordingly) is critically dependent on this MOU continuing. Last quarterly sales revenue for all of their products of $85k is a long way short of the mark.
I would be interested in others comments. Cheers KM
RBY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
