DW8 Growth, page-9238

Have been reviewing DW8 revenue multiples based on information via the Q4 2021 & Q4 2020 4C's only.

FY2021 annual revenue of $2.63M / $0.32M FY2020 annual revenue = 721.9% YOY growth. Very high.

FY2021 cash burn of $5.4M / $2.63M revenue = x2 compared to FY2020 cash burn of $1.9M / $0.32M revenue = x5.9. Significant reduction.

$112.25M MC - $6.8M* cash = $105.45M / $2.63M FY2021 4C revenue = x40 multiple.
*Not factored in additional funds from CR.

Alternatively, the revenue for FY2021 can also be calculated as $1.027M for Q4 2021 x 4 = $4.1M annual run rate.
$105.45M / $4.1M = x25.7 multiple.

From the above calculations it is evident that even when SP is languishing the revenue multiple is x25.7 or x40 depending on which annual revenue method is used.

The Q1 2022 4C should have about 220k cases & about $4.2M revenue x 4 = $16.8M run rate. Will have approx. $8.5M cash with the CR funds.

If we use the lower revenue multiple of about 25 x $16.8M = $420M + $8.5M cash = $428.5M MC or 24c SP.

And using the higher multiple of about 40 x $16.8M = $672M + $8.5M cash = $680.5M MC or 38c SP. Fits the 32c SP cup target.

So when revenue of about $4.2M is shown in the Q1 2022 4C the MC cannot stay where it is now otherwise it would look as follows:
$112.25M MC - $8.5M cash = $103.75M / $16.8M = x6.2 multiple. Very low.

Only a matter of time now before SP goes on another run.