Forecast revenue for FY 2015 in the prospectus was $4,853. $20 mil was raised in the IPO on figures like this and on a "blue sky" potential. 18months later the 84 million shares sat at 5 cents. The three seed investors were holding 60% fully diluted after the IPO. From what I can gather they put in $24,175,942. At .05 cents a share their investment is worth $2,520,000. From what I can see they still hold similar amounts of stock. (surprisingly Michael Nark in his latest webinar stated when asked by a listener "What is the companies current relationship like with its investors?" "Excellent" he said
If you bought the IPO its clear that the $20 m was to last two years to finance the business through to revenue positive.
A few major issues that caused the stock to plummet were....
Nevada withdrawing from a MOU which saw a big chunk of projected contracted revenue disappear
Less new business due to cheaper power costs in 2016
High operating expense.
$3mill purchase of Northwrite, which had to come in cash straight out of the business.
Awarding well priced options to Michael Nark. (I think this will be seen in 6 months as very worthwhile)
So here we are today and the "Blue Sky " tech has only got better. The i5 platform continues to add value to the Monthly Recurring Revenue (minimum 36 month contracts) projected for third qtr of $630K month.
I like the fact that I can understand this business
New clients don't have to invest $. They pay from the savings joining up brings.
Its totally scalable, worldwide.
The revenue grows the cost % falls.
Its predictive analytics, through cloud based data and its protected by patents.
Every major sized Office, Hospital, Government building with a Building Management System, should, if accountable for their energy drain on what's left of our system,should sign up.
Electricity prices are only going one direction in Australia.
Annual contracted revenue at 30/6/17 (ann 25/08/17 FY2017 Interim Financial Results) is $4.8m. (interesting that this was the same fig used in my first sentence for FY 2015. Company is targeting exiting FY17 with >$6m ACR.
The only concern I have here though is I doubt there is any more than 10% free float, so liquidity is poor. Happy to hold and see how this unfolds. I think some buyers have been able to buy at a fraction of what the IPO investors bought but without the downside risk. Also they most likely will need to raise funds before end of year. Again from the webinar when Michael Nark was asked about this said "Not significant, worst case replacing resources used in acquisition " I'm assume this would be the $3mill for Northwrite.
Just all my own opinion. Don't buy or sell on my poor figures.
BIQ Price at posting:
7.9¢ Sentiment: Hold Disclosure: Held
