If it's so high margin then how come the ~$2.5m growth in...

If it's so high margin then how come the ~$2.5m growth in revenue generated ~$3.5m increase in expenses?? It's what this increase was that really sticks out (nothing to do with keeping the lights on). Like NWZ, it bugs me to see a great product with great potential have this happen.

But OPEX is only one part of the story. CAPEX (which is a positive here) is required too.
Ultimately, cash is king. At Dec-15, PEH had net debt of ~$2.5m.
It's gonna have to fund this growth somehow and is not yet cashflow positive enough to do so.
The market reaslises this and is pricing a CR in.

I'm not thrashing the company. But you can't ignore cash!
That's enough from me. Will keep an eye on it.
Anyway, back to disco biscuits!!