Hidden Gem ???, page-7

Agreed that NGS is undervalued and trading on a very low market cap based on the current business growth opportunities and future cash flow..

NGS Past 12 months of revenue is US$2.91 or A$4.5m

Current Market Cap is around - A$3.5m @ $0.014

Key Drivers for Revenue Growth

• 795 Walmart stores to start stocking Healthy Tummies from Q3
• 465 Walmart stores currently stocking Kidz Protein with opportunity for more stores
• Overall growth in Walmart sales
• iHerb to stock NGS products
• CVS Pharmacy sub brands to stock NGS products
• More nationwide and regional US retailers to come on board

From the quarterly, the "US business nearing cash flow neutral starting the September 2023 quarter, with NGS on track to be cash flow neutral or positive by the end of December 2023."

So let's assume that NGS is cash flow positive by December and grows revenue for 2024 based on the above to say a conservative US$5m (A$7.6m), this would mean that the company is currently trading on a market cap of < 0.5 x of 2024 cash flows.

The quarterly also mentioned that "NGS expects to significantly reduce annual Selling, General and Administrative expenses by approximately US$1.9 million in 2023 or 34% compared to total expenses in 2022."

I understand that some of the cost reductions have already been implemented, however I think we'll see the full effect of these from the next quarterly.

If NGS can continue to cut costs and drive sales we could see US$1.5m+ EBITDA on a conservative estimate of US$5m in revenue for 2024.

This makes the current A$3.5m market cap looks pretty damn cheap IMO.

DYOR