What are the expected profit margins and cost structure for delivering the blockchain EHR platform?
Profitâmargin outlook & cost structure
FullâAllianceâs Qubitera platform is positioned as a PQCâenabled, SaaSâstyle blockchain EHR/EMR solution that will be sold on a subscriptionâplusâimplementation model. In comparable B2B SaaS healthâtech businesses, gross margins typically settle in the 65â85âŻ% range once the platform moves beyond the initial development phase. The primary cost drivers for Qubitera are:
Cost component | Typical share of revenue | Drivers for Qubitera |
---|---|---|
R&D & software engineering | 15â25âŻ% | Ongoing PQC algorithm upgrades, interoperability APIs, and regulatoryâcompliance updates (HIPAA, GDPR). |
Cloud & blockchain infrastructure | 10â15âŻ% | Distributed ledger node hosting, dataâencryption services, and redundancy for global rollâout. |
Compliance & security audits | 5â10âŻ% | Continuous thirdâparty penetration testing, certifications (ISOâ27001, HITRUST). |
Implementation & professional services | 10â12âŻ% | Integration with legacy hospital IT, dataâmigration, and training. |
Sales & marketing | 8â12âŻ% | Enterprise sales cycles, channel partners, and global market expansion. |
General & administrative | 5â8âŻ% | Corporate overhead, legal, and corporate development. |
Assuming the platform reaches a midârange subscription price of $150â$200âŻk per enterprise per year (typical for enterprise EHR SaaS), a 10â12âmonth sales cycle yields an annual recurring revenue (ARR) runârate of $30â$50âŻM for a modest 300âclient pipeline. After subtracting the above cost structure, net profit margins of 15â20âŻ% (ââŻ$4.5â$10âŻM) are realistic, with higher upside once the fixed R&D and infrastructure costs amortize across a larger installed base.
Trading implications
The 5âphase roadmap signals a longârun growth catalystâeach phase unlocks new geography or functional module, which should drive ARR growth of 30â40âŻ% YoY if adoption follows the 10â15âŻ% market penetration rate typical for emerging blockchain healthâtech. Look for contract announcements, especially with large healthâsystem partners, as these will serve as âprice catalystsâ for FAGI. A breakâout above $1.15 (the 200âday SMA) on volumeâweighted up days would suggest the market is pricing in earlyâstage revenue, while a breakâdown below $0.85 could signal concerns over high upfront R&D spend and regulatory risk. In the shortâterm, keep an eye on R&D spend trends in the 10âQ filings: a spike relative to revenue could pressure margins and trigger a pullâback, whereas a steady or declining R&D/Revenue ratio will reinforce the projected 15â20âŻ% net margin and justify a buyâonâdip position for the next 12âmonth horizon.