It has started - will it continue?, page-77

Hi Y,

I can't answer that question as it would only be a guess, what I would add though is that if the company were stating that they're receiving all these new contracts and they weren't spending money now, I would be questioning why.

The fact that they're spending now proves to me the company is growing rapidly.

Also on another note I'll add ( after doing research on the Moelis report thanks to you) I noticed that although Moelis has a $1.20 12 month SP target based on a US $18.5 mill revenue, there's more that's not included in their pricing (two of which are stated in the report but not added on to the US $18.5 minimum revenue).

They are

• For instance, not included in our estimates or management’s CY16 revenue forecast of ~US$18.5m is any contribution from its latest customer win in the floor covering sector. This market is expected to
  grow by ~5% p.a. to 2019.
  

Nobody knows how big this could be, but I would assume the volume of carpets would use plenty of our product.

Also

Our recent PCM contract that's worth US $5million annually with sales that have already started, as stated in the PCM Ann.

Also

The US $4 million fiberglass contract that the company and Moelis have stated commence in the second half of CY 2016 and received by half way through CY 2017.

These equate to an extra US $9 million, then add on the unknown carpet contract.

So the US $18.5 that Moelis has spoken of, also needs these added to them, as Moelis have stated they are not included.

Re-reading this report has certainly made me think that our revenue already sits around the US $30 mill without any extra customers or existing customers ramping up on orders.

I hope this helps with your figures Y.

Cheers.