Coretec’s Revenue Strategy
Shareholder Call Series – Part 6 Revenues are a focus area for our commercialization strategy and process. Our revenue is going to rely on either the sale of a license or the sale of product, both of which are currently being discussed with our customers. Negotiations around revenue are likely to happen sometime next year, as our customers begin receiving their CHS samples in Q4 2020 and Q1 2021. Licensing often involves a general license fee upfront, followed by a royalty over the subsequent years thereafter. Some general license fees can reach the million-dollar or even more. Royalties on the other hand have a much wider range and heavily depend on the application. One option that we are also looking into is creating an exclusive license, which can get much of the cost of the overall license upfront in the general license fee. If it is large enough of an application, customers will sometimes attempt to acquire the company, to maintain exclusivity. There is the possibility that we could be acquired on that basis, but that will be a matter of maintaining traction with our customers. Many of the applications we are looking at are quite large, making a potential acquisition a very real possibility. To learn more about Coretec’s revenue, please see page four of the July 2020 shareholder call transcript or visit our expanded blog post on this subject.