Daniel Bouchin's questions to SONO TEK (SOTK) leadership • Q4 2025
Question
Asked about the tangible benefit of high average selling price (ASP) machines for investors, the potential price ceiling for medical systems, the company's viability as a standalone business versus being acquired, and future CapEx guidance.
Answer
The main benefit of high ASP machines is that they target high-volume production, leading to larger orders (10-20 units vs 1-5 for R&D systems) and exponential growth potential. Medical systems are currently around $250k, with potential for higher-priced, more integrated solutions in the future. The company sees a long runway for organic growth but would consider an acquisition if it benefited shareholders. CapEx for FY26 is guided to be around $430k, a decrease from the prior year as major facility investments are complete.