Agreed. Despite the decrease in cash receipts in the June 4C (likely due to the lag in harvest, processing and then sale), other fundamentals look great and they're tracking according to Nan's timeline in the CR investor presentation earlier this year.
Looking at the PCE constructions and their output, a quick calculation gives the following:
FY24 - 16 PCEs @ 2 harvests/year = 32 harvests/year
With the addition of 9 PCEs this increases to 50 harvests/year, however, the R&D trials have already added heat/lighting to 4 of the existing PCEs, doubling their output to 4 harvests/year. Total = 58 harvests/year.
The annual report states that power supply upgrades are underway that will allow aditional heating/lighting for 8 of the new PCE's, so 32 harvests/year up from 16, giving an approximate total output of 74 harvests/year from PCE's alone by end of FY25. Thats a 131% increase (32 -> 74) in the next 9 months.
Based on the previous indication that 2 PCE harvests produce approximately $700k revenue or $350k/harvest, we're looking at $25.9 million revenue, plus the revenue from outdoor grow.
That's with only 12 of the 26 PCEs having heating/lighting! Factoring in those being upgraded too (ASAP please), 14*2=28 additional harvests/year would generate an additional $9.8 million, bringing our theoretical revenue from PCEs alone to ~$35.7 million/year. And that's just what we've got being built by next April, plus some additional upgrades to the other PCEs!
As Nan has stated previously, what keeps her up at night is trying to supply the demand, and scaling this as quickly as possible needs to be done in a coordinated way so ECS don't stumble, but it's exciting to see a clear growth trajectory.
Does anyone know what revenue the outdoor crop generates?
I'd love to see an announcement regarding further PCE builds in 12 months time, but I suspect ECS may need to show they've maximised their licensed output (and customer orders) before applying for an expanded licence.
They're doing the right thing by proving they've got a healthy, viable and cashflow positive business without overextending themselves with expansion plans, particularly in an uncertain market given current sentiment. I expect once they've proven themselves with the viability of the PCE's (with upgrades) and create significant profit and breathing room next financial year, they can start to go nuts with expansion.
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