Dilution or Shares on issue are not the most important factor anyway. the reality is this is trading with a MARKET CAP now of around $13M AUD. And my estimation is that they will probably go close to $20M revenue this year and in all likelihood generate a positive NPAT.
They have already done $9M revenue up to August with the first 3 months basically a dead loss because they were broke and with the biggest months of the year still to come
Market must still be dubious that they can keep up this revenue growth profile. But every month that passes where revenue grows another 20%, eventually the market will have to accept that this company has turned around their financial situation and is generating free cash for reinvestment (and finalising any remaining legacy debt).
As we saw in the half yearly, payables are now down to $7.5M at June 30 and over half of that is due to current revenue related payment of publishers. So probably under $3M in bad debt to settle. Given the historical terms that have been negotiated (2:1) that suggests only about $1.5M in free cash still required to settle it all. That will go in the blink of an eye now. Possibly later this year as cash flow improves with receipting of increasing revenue.
Patience will be rewarded for those that can see where this is going. Of course i'm always watching and if we had a big drop in September revenue I'd be questioning my investment thesis. But i haven't been let down thus far in 2019.
EN1 Price at posting:
2.3¢ Sentiment: Hold Disclosure: Held
