I struggle to gauge the likelihood that the cost of doing business really will level off.
ALC has some characteristics that could see this happen ("trapdoor moat", low overheads once contracts are set up etc.) - however we could have made the same argument in previous years and yet the company remains on the cusp of profitability without getting there. For example if someone had told me in 2019 that in 2022 ALC would more than double its revenue to $34m in FY22, I'd have assumed it would have been profitable by now.There also seems to have been a change in the way costs are accounted for in the gross margin in 2021; in 2020 they reported a 25% Gross Margin for FY20 which the 2021 Report restates as 86%. Not to say that this is nefarious but again, when costs consistently rise in line with revenues it begs the question how scalable this is.
More than happy to hear an argument as to why I'm being too negative on this and should start a position!
