|Not sure on details surrounding hearing as I'm more focused on the underlying business but considering most of their revenues comes from Mercedes I thought the total numbers of cars with MSC in the Q to be extremely low! Joe reinforced that the take rate has been higher than even Mercedes expected which is awesome...until we play around with some figures.|
For simplicity's sake, lets say all of REFR's revenue came from Mercedes vehicles. We know that revenue for Q2 was $244k. Using the low end fee/vehicle royalty rate of $150.00 we get a total of of 1,626 vehicles (1626 *$150=$244k). I realize that not all of REFR's business comes from auto's, but 1,626 vehicles in a quarter is extremely low considering investors are thinking about an annual rate of 120k vehicles produced per year with the potential to use MSC as an option. If this quarterly number of cars was annualized, we would get 6,504 cars which would mean a take rate of 5%ish (6,504/120,000).
Is my math outlandish? Please comment your opinion.