PEB - Pacific Edge Ltd

[Snow Leopard]

...Attached is the royalties’ prediction from that report....

I notice that the guesses have:
a royalty rate of 1.5% of sales (for all years) in the 2012 one;
a royalty rate of 2.0% of sales (for all years) in the 2013 one and;
a royalty rate of 4.0% of sales (for all years) in the 2014 one.

Can anyone explain that?

Best Wishes
Paper Tiger

[Minerbarejet]

I notice that the guesses have:
a royalty rate of 1.5% of sales (for all years) in the 2012 one;
a royalty rate of 2.0% of sales (for all years) in the 2013 one and;
a royalty rate of 4.0% of sales (for all years) in the 2014 one.

Can anyone explain that?

Best Wishes
Paper Tiger

Penalty rates or inflation perhaps.
Its a toughie that one.

[Balance]

I notice that the guesses have:
a royalty rate of 1.5% of sales (for all years) in the 2012 one;
a royalty rate of 2.0% of sales (for all years) in the 2013 one and;
a royalty rate of 4.0% of sales (for all years) in the 2014 one.

Can anyone explain that?

Best Wishes
Paper Tiger

Page 11 of the RM 2014 Report states that royalty rates from CxBladder to be between 2% to 4% based upon industry standards.

[Xerof]

Well, trading revenue from external customers for the 6 months to 30 September 2014 was NZD 531k.

Royalties at 4% and an exchange rate of ~.87 results ~AUD$18k payable to CDY

[psychic]

Page 11 of the RM 2014 Report states that royalty rates from CxBladder to be between 2% to 4% based upon industry standards.

It says

We change our royalty rate on diagnostic
business from 2% to 4%, in line with the current industry standards.

So it is their estimate that has changed. From 1.5 to 2 now , shall we say 4?

[Balance]

It says

We change our royalty rate on diagnostic
business from 2% to 4%, in line with the current industry standards.

So it is their estimate that has changed. From 1.5 to 2 now , shall we say 4?

You are right.

RM Research is very optimistic! They forecast PEB doing sales of 56,981 tests in year to 30 June 2015!

[psychic]

Good thing PEB got those 12 Sales Exec's going recently then eh. Hate to dissappoint the Aussies.

[Snow Leopard]

It says

We change our royalty rate on diagnostic
business from 2% to 4%, in line with the current industry standards.

So it is their estimate that has changed. From 1.5 to 2 now , shall we say 4?

So do PEB have an agreement with CellMid that places a fixed upper limit on royalty rates or are the next 'current industry standards' going to blow out the budget.

Best Wishes
Paper Tiger

ASX:CDY Cellmid == Market Cap:$20M; HY Revenue:$2M; HY Loss:$1M.

[Snow Leopard]

Cellmid will receive single digit royalty from sales (Slide 11)

Best Wishes
Paper Tiger

[Balance]

It may also be worth pondering at this point why RM Research were introduced into the debate.

Most posters will recall that CDY (Cellmid) and RM Research were used as resources to assess PEB prospects when there was little hard research information on PEB?

Guess the lesson to be learnt is that research like Edison or RM Research are as useful as what the companies like to tell the market?