Soliton recently released its first shareholder letter<\/a> as a publicly traded company. The report discussed a lot of exciting progress on core technologies and product development, but the letter left shareholders little closer to understanding when and how this work will show up in the top and bottom line of financial results. The letter simply indicated that Soliton plans to start recognizing revenues “as early as mid-2020”. The company expects its Rapid Acoustic Pulse (RAP) device to become a standard of care in a market that should grow to $4.8B by 2023. The letter also included a handy timeline for Soliton’s stock.<\/p>\n\n\n\n To get a better sense of the company’s financial health and prospects, shareholders need to refer to the 10Q<\/a> which covers results through June 30, 2019. Since SOLY is not yet making money, the cash burn is the most important thing to understand about the financial results. SOLY stated that “based on our current plans, we estimate our cash resources, including cash on hand of $11,387,168 at\u00a0June 30, 2019\u00a0is sufficient to fund our operations into but not beyond May 2020…” Given the company will not start earning revenues until around that time, Soliton will very likely issue more shares for funding operations. That event presents a future risk for the price of the stock.<\/p>\n\n\n\n![\"The](\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/09\/190918_SolitonStockTimeline.png\")
Source: Soliton Shareholder Letter<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\nFinancial Results<\/strong><\/h3>\n\n\n\n