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[lr2] 29/4/2015 20:35

Davydoo, I have no idea as to the normal length of a TexRAD software licence but it is quite possible that they may exceed 12 months in length.

However, if the contracts are precisely one year in length and just 1 month's revenue turns up this FY then that's 8.33% of a year's worth. The other 91.66% will turn up in the next FY. That will be 11 times what is shown in this year's accounts. Of course, as you rightly say, the contracts could well exceed 12 months in length so 12 times the current FY software amounts will turn up in FY 2016 (and every full future year that the contract encompasses).

I'm just trying to point out that a lot of next year's revenue will be more than 10 times the value of this year's revenue... and that's not taking into account any further new contracts that come to light in the near future of course.

I felt, rightly or wrongly, that the company saying revenue will be in line with expectations for this year was kind of hiding the real financial picture going forward. My apologies if I hadn't made that clear in my first post.

[davydoo] 29/4/2015 20:24

As an investor a SaaS model is exactly what I would want over a licence model, but all the more reason why quick profitability is unlikely

[davydoo] 29/4/2015 20:12

LR2 your numbers suggest the contracts are only 60-65 weeks long, i presumed they were longer, (at least 2 years) so more revenue will show next year you are right, but not the remaining 90% of revenue if they're recognising revenue month to month, do you agree?

[lr2] 29/4/2015 19:35

Just a passing thought about revenue for the current financial year as I don't feel the company were sufficiently clear about how they go about revenue recognition on sales of software licences in today's RNS.

The company has previously stated in their AIM Admission document that "Revenue relating to the sale of software licences is recognised over the period to which the licence relates."

I believe that means a proportion of the revenue is applied to the accounts on a monthly basis throughout the contract.

When the year end accounts are released they will only reflect the contract proportion up to the end of May 2015. As we can see, the recent sales announcements have all been released from mid-April onwards meaning that only a small proportion of the sales prices will be applicable to this financial year's accounts.

Somewhere between 5 - 7 weeks in general. On a 52 week contract that means only 9.6% to 13.5% of the value will be applied to this financial year.

So, when the figures for this financial year are released it would be worth reminding ourselves that the significant bulk (86% - 90%) of the sales revenue will turn up in 2016 and we should not forget this. Do not be deceived into thinking that sales revenue looks small for the number of contracts gained so far, the majority of the revenue will be hiding in plain sight so to speak.

My apologies to the traders here who aren't particularly interested in the wider story but I hope it is useful to any people here who plan on tucking a few of these shares away long term.

[lr2] 29/4/2015 19:01

Decent chat about Feedback on the link below. Starts around the 9 minute mark and finishes around the 15 minute mark. Worth a listen.

[davydoo] 29/4/2015 12:06

I have previously posted some of my buys on this board fwiw In the last week i've taken the good news, and more importantly the liquidity, to go from 1.3m shares to a token holding of 100k. The news has been good, but this flurry of announcements seem to have found a ceiling in the price.

So I will sit on the sidelines now until the price falls or we have news with more impact.

[lr2] 29/4/2015 09:35

Think I let the cat out of the bag regarding the drug trial 3 days ago Ken (see post #601). The loss for this financial year is to be expected due to the way the company handles revenues (spread over length of contract so little to show in current financial year). The next financial year is likely to show a significant improvement and could be profitable imho providing they keep a tight control on costs going forward.

As for Stig and his placing. Perhaps he would like to comment on the previous company placing.

"Subscription to raise £300,000, supported by the Company's directors and an existing shareholder, completed at a 62 per cent. premium to the closing middle-market price".

That's a 62% premium Stig. Any comments?

[kenwrong] 29/4/2015 09:04

Company have just announced that TexRAD software will be used by Feedback PLC in a forthcoming drug trial by Imaging Endpoints with colorectal cancer patients. Also says it is trading in line, but the loss for the year will be higher than current expectations due to timing of revenues, product sales mix and contract settlement costs. But when this is set against such a tiny £4m valuation, there seems to be an awful lot of potential yet to be realised.

[sja123] 29/4/2015 08:33

Yep, Stig puts a lot of negative effort in but anyone who has been around these boards for a while would know he's best ignored as he has his own agenda....

Companies list in order to raise capital and it would be no surprise to anyone sensible to see a placing here going forward....they need money to grow the company further from this tiny base and it enables further diversification of share ownership...

What interests me more for the longer term is the way the software is penetrating research departments throughout the world and what it can bring to better diagnosis....it could well become industry standard software in time as clinicians continue to prove it's worth in directing specific treatments to patients...

All imo of course

[davydoo] 29/4/2015 08:21

Thanks for the laugh Stig, you delivered a master class in derampung there

[mikealig] 29/4/2015 08:21

A placing could be on the cards here, but with the current interest in their products, that would be great news. With such a tiny mkt. cap, there's huge opportunity to grow here.

[blueball] 29/4/2015 07:44

Should be another positive day.

[the stigologist] 29/4/2015 07:32

six RNSes in the space of a few weeks shows the desperation of the company let alone the pump and dump con artists who operate on internet bbs

could even collapse sub one penny as there will have to be a stewards enquiry and expect heads to roll

will not look good if some fraudy insiders found to have been over egging the pudding on internet bbs

[the stigologist] 29/4/2015 07:27

expect a placing at a penny to cover the increased losses

was looking like a million a year loss so it will probably require an EGM for a huge raise but their credibility is shot now

[the stigologist] 29/4/2015 07:26

Profit warning

forced out of company as people no doubt got suspicious about the low grade rampy statements emerging from the pump and dump posse

[sja123] 28/4/2015 13:30

Yep, agree with that LR2...."imminent" really means very little in any stock I have ever held!...If enough clinicians see the objective benefits of this tech, and enough are trying it out now around the world, then the FDA will go along with that I believe...

[lr2] 28/4/2015 13:05

SJA, when I posted "Imminent apparently" I knew it could be contentious. There is no other word in the financial universe more likely to produce a head-slap than 'imminently'. I've lost count of the number of times a company in which I've held shares has said it and then found out their expected news was anything but imminent.

However, it does seem that TexRAD software has a foothold in current clinical studies within the US (see my post #601) so, hopefully, FDA approval will come along at some not too distant point. The more hospitals and scanner manufacturers that use and bundle up the TexRAD product worldwide, the less likely the US FDA will refuse to accept it.

[sja123] 28/4/2015 12:30

Having said that....the amount of news coming from the company at present, we could have something on that soon....let's hope so as that would give a huge boost to the prospects going forward....

[sja123] 28/4/2015 12:27

The "imminent" on Linkedin is referring to a TipTV interview in November 2014 I believe....not much mention of it since...hopefully, it is their focus behind the scenes but it does seem to be dragging on considering the approval they are seeking is not for a drug but for a diagnostic tool....

[lr2] 28/4/2015 12:12

Imminent apparently.



"Why imminent FDA approval will be transformational for Feedback PLC".

[blueball] 28/4/2015 12:04

FDA approval is the key here I wonder when.

No mention in yesterdays interview.

[sja123] 28/4/2015 11:54

Fascinating stuff!........

[lr2] 28/4/2015 10:01

Feedback are mentioned from around the 30 minute mark of podcast 187.