Fundraising rounds:
Projected Revenue and Cash balance
The final, FDA compliant Podware system is projected to launch in year 2 and be profitable by year 3. The initial $600K seed fund will provide funding to achieve proof of concept, user testing in the clinic, and FDA registration as a Class I device. A following $2M Series A round will drive commercialization of the device by enabling manufacturing scalability and expanding sales and distribution networks.
Projected revenue vs Manufacturing costs
Revenue projections are based on a top-down approach to evaluate the market opportunity and conservative estimates for market penetration (slow growth to 10% by year 7). The majority of revenue growth is due to the insole sensor component of the podware system.
Manufacturing costs are based on cost of goods sold (COGS) and estimated manufacturing labor costs. Actual manufacturing of basic components will be outsourced and the cost has been incorporated in the analysis of the cost of goods.
Manufacturing costs are based on cost of goods sold (COGS) and estimated manufacturing labor costs. Actual manufacturing of basic components will be outsourced and the cost has been incorporated in the analysis of the cost of goods.
Gross margin vs operating expenses
Gross margin is calculated as the difference of projected revenue and manufacturing costs. The podware system is projected to generate profit by year 3 with a gross margin of approximately 75%. By year 7, the gross margin is projected to be closer to 87%.
Operating expenses are broken down into research and development (R&D) costs, selling, general, and administrative (SG&A) costs, and operational facility costs. As the company scales up, increases in operation costs are offset by the rapid increase in gross margin (driven by increased top-line growth in sales revenue).
Operating expenses are broken down into research and development (R&D) costs, selling, general, and administrative (SG&A) costs, and operational facility costs. As the company scales up, increases in operation costs are offset by the rapid increase in gross margin (driven by increased top-line growth in sales revenue).