It is a very positive announcement but your assessment is a bit...

It is a very positive announcement but your assessment is a bit off. Firstly, it is contract wins not revenue and these will pay out over the coming years so not all concentrated in this quarter and secondly and I think it is a mistake in their announcement (I think they forgot to remove the rackets round a place holder) the 7.7 million was the contract wins last quarter and was not an outflow. So year to date they have done 26.8 million in contract sales. This should put them well on course to be sensibly profitable next financial year .... even after todays run we should be looking at a high single digit, low double digit PE for FY 2021.

With progress due on Cognigram in Japan and maybe a few more decent contract wins there should be good news flow in the first half next year. When market starts to believe management have finally have reached sustainable profitable and given the high operation leverage this thing should fly. With a fair wind with respect to contract wins, profitability of US$ 5 million should be possible in 2022 and 10% to 15% growth from there. That's AUD 7.3 million in 2022. If the market comes to believe that, what is a fair P/E 20x or 25x ?. That would be a market cap of A$ 146 million to A$ 182 million vs current market cap of $50 million. Add to that AUD 10 million in net cash.

It has been painful waiting for management to finally get things right but it looks like we are finally there. They have not covered themselves in glory in the past 2 years, but over the last 4 or 5 months they really seem to have got things under control and they deserve credit for that.