It is on a market cap of around $80 million.if you presume a...

It is on a market cap of around $80 million.
if you presume a growth PE of 20,
then the market is anticipating $4m in after tax profits.

vs

right now, they are cash flow negative $3.5m a quarter, or $14m a year.

It seems pretty simple to me.
The market wants to see signs of around $20m in revenues per annum without substantially increased product costs (or more revs covering any increase in cost of goods sold) before they're happy to push this stock higher. Otherwise, there will be worries about ongoing negative cashflow and dilution.
They are signaling 'revenue capacity of $170m', so the upside capacity is there.

If they start getting repeat orders and, post qualification new orders that confirm that sort of future revenue and expectations of significant upside from there, then we can see the price appreciate.

It dropped heavily on the CLAWS research revenue announcement - imo - because it is chicken feed compared to what the market is hoping for. And because it signaled more research time rather than aggressive commercialisation. I don't think that is a necessarily rational reaction or that there was any reason to expect much more than what was announced, but it seems the market had hoped for more.

Right now, the market is trying to decide if this is a niche supplier that is over-priced relative to potential future income, or whether there are much, much more revenues coming from a disruptive technology that BLG are introducing. The market is anticipating the later but needs to see it is real.

all imho

I agree with all your comments. They just need to bring home the bacon. Revenue increasing 90% over the last year is a good sign; just needs to show lots more. It seems to have the potential. It is now how fast and how big.

E&OE, happy for any correction