XTend Medical (PINKSHEETS/exchange>: XMDC), a company specializing in manufacturing and distributing the latest in telemedicine and diagnostic devices, released the following information regarding the BioHarp market potential:
"As the company moves closer to completing the merger with BioHarp Korea, the management feels it is vital for our shareholders to understand the market potential and the revenue model of the BioHarp device. The BioHarp unit market potential stretches globally. There has been interest from several health departments globally to deploy the BioHarp to outlying village areas and major metropolitan healthcare clinics to utilize the BioHarp as an effective tool for pre-diagnosis on regular physical appointments. Since the BioHarp can travel anywhere with a laptop, the ability for these countries to deploy the unit to hard to get geographical areas allows these countries to scan the patient and choose the correct follow-up procedures that can save these countries millions of dollars in healthcare costs. These countries will use the five sensor unit and the software will be integrated into their respective national healthcare databases.
"In addition to the human markets, the BioHarp will be marketed to the pet and equine industries. The management at XTend has made several contacts with the veterinary market to utilize the BioHarp to scan dogs, cats, and other pets in order to discover potential harmful conditions that can be treated through nutrition and medications. The ability for the veterinarian to market this as an added service allows them to create an additional revenue stream as well as giving pet owners the ability to monitor their pet's health and hopefully alleviate costly procedures. The equine industry itself can be very lucrative for the company in the future. The management at XTend has several thoroughbred trainers and owners they have spoken with about utilizing the BioHarp as part of a daily routine for racehorses to insure their training and subsequent earnings potential is not compromised. As the BioHarp unit can be deployed to the stables, part of their post exercise routine would be for the trainer or vet to scan the horse upon completion of their workout or race and determine if there is any underlying inflammation that can lead to being sidelined, thereby eliminating the ability to earn money racing. This market alone is global in nature as there are literally hundreds of racetracks with thousands of horses, each representing a significant investment to their owners. The yearling sales at places like Keenland, wherein owners plunk down millions to own a potential Triple Crown winner, would benefit by having a BioHarp scanner available in order to scan potential champions to insure the fitness of the horse and to detect potential problems that could arise in the future. These scans would be done with the one sensor unit and would probably be sold and managed by our internal medical team at BioHarp UNI US. The potential trainers and owners would contract with us to scan the animals regularly; generating daily, weekly, and/or a monthly maintenance fee schedule for the company.
"The revenue model for the BioHarp comes from both the hardware and software sales. The single sensor unit will sell for $5,000 US dollars and the five sensor unit will be $30,000. The software will be sold on a license agreement wherein BioHarp UNI US will charge $19.99 per month per patient license, thereby creating a continued revenue stream once the unit hardware is sold. Naturally, if we have groups that are purchasing thousands of units, we will have a discount structure to these monthly fees. With the patient potential in the millions, our revenue model will be very strong and consistent for years to come.
"Lastly I would like to touch on our corporate structure and how we feel the share structure will be beneficial for all current and future shareholders of the company. We strongly feel that our Authorized shares at this time are sufficient to handle our merger and capital raise needs. We feel it would be disadvantageous to do any sort of reverse split due to the potential sales of the BioHarp unit in the coming years. If we realize our sales and marketing goals and hit our projected revenues based on the current inquiries we've received, the company's market cap will be substantial," stated Mr. Paul D. Lisenby, CEO of XTend Medical.
XTend Medical Corporation