Ann: Change in substantial holding, page-8

They have contracted and in-house sales reps, though it isn't clear if the contracted are purely comission based.

This is always the big sales execution issue for a first time device manufacturer : 1. sell via a distributor (who generally won't have the same passion, incentives and product knowledge as in house sales plus they take large margins) OR 2. build up in house sales team and hope they hit the ground running to fund at least their expenses and you keep all your margins.

This company reminds me of Nanosonics from around 5-6 years ago when they started initially with in house sales, then they went predominantly through GE and have finally settled on a hybrid model which seems to work well.

NAN also had a few setbacks and poor sales periods until it finally clicked. Though they weren't addicted to spending like the recently exited CEO, so I don't recall many CRs.

But on valuation grounds, the company is dirt cheap compared to other device plays in Australia relative to its stage of business development. For example, IPD have half the sales (relatively flat for many years) and are burning even more cash per quarter. They are valued at $250M+. Main difference is they have cash in the bank.