Ann: June Shareholder Newsletter, page-27

Rough calculation.

Bear Case:
Q1 = $6.47M
Q2 = $13M
Assuming no more growth for rest of year, Q3 = Q4 = $13M
Annual receipts = $45.47M
40% margin = $18.19M annual profit before SG&A and other expenses
SG&A = 5.5M in 2016 half yearly = $11M for the year (note, the company did announce they have been reducing costs but I won’t factor this in)
Annual profit = $7.19M

Base Case:
Q1 = $6.47M
Forecast Q2 = $19.4M
Assuming no more growth for rest of year, Q3 = Q4 = $19.4M
Annual receipts = $64.67M
40% margin = $25.87M annual profit before SG&A and other expenses
SG&A = 5.5M in 2016 half yearly = $10M for the year (factoring in reduction in costs as announced by company)
Annual profit = $15.87M

Bull Case:
Q1 = $6.47M
Q2 = $6.47M + $7M + $8M = $21.47M
Q3 = $25M
Q4 = $30M
Annual receipts = $82.94
40% margin = 33.176M annual profit before SG&A and other expenses
SG&A = $10M for the year
Annual profit = $23.87M