For a business like this which should be cashflow/profit...

For a business like this which should be cashflow/profit generating, a multiple based upon sales is not appropriate. An EBITDA or NPAT multiple is the way to go, and results in an enterprise value (including debt) for the business rather than market cap (which is equity value).

Based upon recent announcements, we can assume that EBITDA for the current year will be around $2m. An appropriate multiple for a business like this would be in the 5-7x range which results in an enterprise value of $10-14m. From that the debt of say $2m needs to be deducted which results in a market cap of $8-12m. So the current market price is more than fair by these metrics.

Revenue multiples are only really appropriate for software-type businesses or businesses that are investing a lot into R&D/marketing because they are in the startup phase, not operating businesses which are generating earnings/cash flow.