chinese approval, page-21

That's a fair enough comment gsw.

The actual company reports aren't great for this sort of info, but I'll share what I've found.

Dec 07 Quarter - 17335 units sold for $120k revenue

Mar 08 Quarter - 59111 units sold and the investor update reports $282k revenue, but the actual quarterly report only states $166k, which is a large discrepancy

Jun 08 Quarter - 23950 units sold - $258k revenue (some of this may be from the $116k revenue discrepancy in March)

I can't find the Sept Quarter results - it was still HGR at that stage. The final report gives $755k in sales revenue for the financial year, which would leave $211k revenue from this quarter.

A very rough guess has SBN receiving $5 revenue from each unit sold.

From the final report $755k in sales (and a $127k increase in inventory) came from $314k in raw material cost. This means that about 35% of the sales price is material cost($1.75 if it's sold for $5).

This means $3.25 in profit/unit to pay overheads from. The facilities SiYi provides may increase this.

They reported that cash flow break even is at $180k per month ($540k/quarter). This is about 100k units a quarter to break even.

How you interpret this is up to you. But I think that if SBN can sell 1 million units per annum they can bank about $2 million in profit, which would conservatively see the share price at 5-6c.

Jack Frosts call of $5 seemed a bit bullish to me, and unless I am missing something a share price near there would require sales of multiple tens of millions of units (50m+)every year. Possible I guess, but a long way from where we are.

I am still very positive on this companies future, but just wanted to ensure I didn't get overexuberant.