Much appreciated insight, I’ve been curious about how the debt restructuring process has been going! Thanks for clearing up some of my questions. Time to buy some more!!
Do you know if the 2 new products come from their new strategy of licencing products from other companies? Or were they developed by Biodex?
There's a few good news in there like Damar doubling it's EBITDA and Biodex rolling out 2 new products. It's unfortunate that management doesn't release news to communicate it with investors. It might have helped the stock price.
From my understanding, the new spinal therapy device is from another company rather than being developed in-house. Yeah, the lack of communication + no insider buying hasn’t helped sentiment. They’re in a blackout period right now, hence they cannot buy—but let’s see what happens once that lifts.
A deadline, if I understand correctly, is around June/July. If Damart is not sold by then, it will be a serious problem. I don't think they can wait until the end of the year.
Second, the Mirion debt restructuring is a double-edged sword, because they need to manufacture more products at BE.
They actually extended the forbearance agreement deadline from July 2025 to April 2030. The latest PR states: ‘Biodex Rehab’s outstanding debt to Mirion has been reduced from $6.7M due in July 2025 to $4.25M due in April 2030’—so they got a $2.45M debt reduction and nearly 5 more years to repay.
Not sure what you mean by a double-edged sword—can you expand on that?
My biggest concern is: „The assets reported a revenue of $18 million. As part of the acquisition, at the closing the parties will execute a two-year contract manufacturing agreement with Biodex, which together with the Acquired Assets are expected to generate $26 million annually. „
"Is the current $20-24 million TTM Biodex revenue inclusive of approximately $8 million from the Mirion CMA? Without this revenue, would Biodex be generating approximately $10-16 million independently, assuming no new revenue streams are introduced?"
Based on management's numbers, Mirion contributes ~20% of total revenue, but only ~7% of total gross margin due to unfavorable contract terms.
If Mirion transitions manufacturing elsewhere, Evome has a plan in place—they will reallocate workers from Mirion’s radiology assembly line to higher-margin rehab products by scaling up production via outsourced sub-assemblies.
So, at the end of the day, TTM Biodex revenue without Mirion CMA is around $16M with minimal profitability. If the Damart sale happens at the end of the year, Ecome will have a break-even business but no capital to ramp up new products. Plus, if the sale price is lower than expected, they will need to raise money as well. So, they will either need to raise funds because the current product line is capital-intensive, or they will wait until the Damart sale happens and use the proceeds to reinvest, which could delay new product acquisitions by a year. At this stage, Evome is still a black box for me. P.S. Thanks for the answers!
What do you think about the latest news? A new business segment that doesn’t fit Biodex’s profile at all. Michael Dalsin has made weak acquisitions in the past.
"The Company and Mr. Dalsin plan to release a corporate update to the market before April 1, 2025."
Could this mean the company is being acquired or issuing new shares?
The PR suggests they’re exploring opportunities in the fertility market, but it’s unclear if this signals a full strategic shift. Given the CEO and COO’s fertility background and Dalsin’s deal-making experience, it’s something to watch. We should get more clarity in the corporate update before April 1.
Yea. I feel completely misled and it raises serious concerns around transparency, selective disclosure, and whether material risks were intentionally withheld.
Much appreciated insight, I’ve been curious about how the debt restructuring process has been going! Thanks for clearing up some of my questions. Time to buy some more!!
Glad you found it useful!
Thank you Aditya for this detailed update.
Do you know if the 2 new products come from their new strategy of licencing products from other companies? Or were they developed by Biodex?
There's a few good news in there like Damar doubling it's EBITDA and Biodex rolling out 2 new products. It's unfortunate that management doesn't release news to communicate it with investors. It might have helped the stock price.
From my understanding, the new spinal therapy device is from another company rather than being developed in-house. Yeah, the lack of communication + no insider buying hasn’t helped sentiment. They’re in a blackout period right now, hence they cannot buy—but let’s see what happens once that lifts.
A deadline, if I understand correctly, is around June/July. If Damart is not sold by then, it will be a serious problem. I don't think they can wait until the end of the year.
Second, the Mirion debt restructuring is a double-edged sword, because they need to manufacture more products at BE.
They actually extended the forbearance agreement deadline from July 2025 to April 2030. The latest PR states: ‘Biodex Rehab’s outstanding debt to Mirion has been reduced from $6.7M due in July 2025 to $4.25M due in April 2030’—so they got a $2.45M debt reduction and nearly 5 more years to repay.
Not sure what you mean by a double-edged sword—can you expand on that?
My biggest concern is: „The assets reported a revenue of $18 million. As part of the acquisition, at the closing the parties will execute a two-year contract manufacturing agreement with Biodex, which together with the Acquired Assets are expected to generate $26 million annually. „
https://www.marketscreener.com/quote/stock/EVOME-MEDICAL-TECHNOLOGIE-49479207/news/Salona-Global-Medical-Device-Corporation-completed-the-acquisition-of-Physical-medicine-assets-from-43423137/?utm_source=chatgpt.com
"Is the current $20-24 million TTM Biodex revenue inclusive of approximately $8 million from the Mirion CMA? Without this revenue, would Biodex be generating approximately $10-16 million independently, assuming no new revenue streams are introduced?"
Based on management's numbers, Mirion contributes ~20% of total revenue, but only ~7% of total gross margin due to unfavorable contract terms.
If Mirion transitions manufacturing elsewhere, Evome has a plan in place—they will reallocate workers from Mirion’s radiology assembly line to higher-margin rehab products by scaling up production via outsourced sub-assemblies.
So, at the end of the day, TTM Biodex revenue without Mirion CMA is around $16M with minimal profitability. If the Damart sale happens at the end of the year, Ecome will have a break-even business but no capital to ramp up new products. Plus, if the sale price is lower than expected, they will need to raise money as well. So, they will either need to raise funds because the current product line is capital-intensive, or they will wait until the Damart sale happens and use the proceeds to reinvest, which could delay new product acquisitions by a year. At this stage, Evome is still a black box for me. P.S. Thanks for the answers!
Do you know when next earnings are released?
They released Q4 2023 earnings on April 1 last year, so I’d expect this year’s release to be around the same time.
Great insight 👍
What do you think about the latest news? A new business segment that doesn’t fit Biodex’s profile at all. Michael Dalsin has made weak acquisitions in the past.
"The Company and Mr. Dalsin plan to release a corporate update to the market before April 1, 2025."
Could this mean the company is being acquired or issuing new shares?
The PR suggests they’re exploring opportunities in the fertility market, but it’s unclear if this signals a full strategic shift. Given the CEO and COO’s fertility background and Dalsin’s deal-making experience, it’s something to watch. We should get more clarity in the corporate update before April 1.
What do you think of the NR on Friday Do you think management was not truthful about their situation. Are they going bankrupt?
Yea. I feel completely misled and it raises serious concerns around transparency, selective disclosure, and whether material risks were intentionally withheld.