~$8.2m EV for a business like this is quite cheap. They have...

~$8.2m EV for a business like this is quite cheap. They have clearly demonstrated demand and execution in recent months, and have expanded beyond the cyclical industries that usually demand the product.

The way I see it, the maximum downside from here is $5.5m - a 44% downside.
($2.4m net assets, plus $3.1m in tax credits available within the company).

The upside is multiples of the current price. They need another $2m GP ($3.3m in sales) to cover the entirety of operating expenditure - the weighted pipeline covering the majority of that. Once that's done, ~58% of sales will flow to the bottom line.

In three years, if they sell $15m of product at a 60% GPM, you've $9m in Gross profit, and $4m PBT.
At a 13 times multple, that's ~$40m Market cap - a little over 4 times your money. As you go further into the future, that grows significantly.


Yes, there are risks, including execution risk. But in my mind, Gerard has clearly proven himself (and learnt from the cheap equity raise)