I was having a look at another "tech" company this morning -...

I was having a look at another "tech" company this morning - Livetiles (LVT). Very different business in the tech sector but on a similar growth path to ISX.

LVT just hit a ARR of $15mil as of the end of June quarter, up from $11.2m ARR as of end of March quarter. They have a bit more cash in the bank but their last 4c shows their quarterly cash burn of $6.5m is much higher than ISX.

I've used my estimates for this quarter for ISX to do a basic comparison and show how ISX may be undervalued comparatively.

Comparison:

LVT
Annualised Revenue runrate- $15mil

Cash: $24 mil (end of March likely less now due to cash burn).

Quarterly operating expenses - $6.5m (as of March).

Market cap - $330 mil

ISX
Annualised revenue runrate - $14mil (estimate)

Cash: $7mil (end of March though likely more now due to cash flow positive).

Quarterly operation expenses - $1.8mil (as of March). May be a bit higher now.

Market cap - $205m (expect all perf. shares vesting).

I think this shows that if the quarterly comes out as expected then ISX is undervalued comparatively. We have much lower operating expenses and are on a similar if not quicker revenue growth path. We have stopped burning cash and will be starting to build our cash balance.

I know there is more to it when comparing businesses but it gives an idea on what the market is willing to pay. I think once the perf shares cloud has passed it will be onward and upward for ISX.