Valuation

So i'm a bit surprised with the lack of movement in this stock on the back of, at least in my mind, a very strong quarterly update. At 1.329mio in sales for the quarter this was a 43% QoQ increase in revenue.....Thats good.

YTD (calendar year) revenue is just shy of $4mio and they just booked an operating profit as well. With 4.5mio in cash in the bank, the company will unlikely need to raise capital for a while if it keeps producing operating profits and if revenue continues to grow then the company will be self funding for the most part.

All in all, the company is in good shape, and its prob a bit early to be looking at valuation metrics, but broadly speaking it does seem a little underpriced at 1.6c and a market cap of 30mio. Strip out the 4.5mio in cash and im going to use the average in sales over the last 2 quarters (756k and 1,329mio) which gives us 1.042mio in average revenue per quarter, then we get a revenue to market cap multiple of around 24.4x. But if the company continues to grow at 40% QoQ growth, then this is likely to contract quite quickly --- to which, at least i'd argue, the market would look to re-rate the company.

The recent capital raise will cap this for a while until there is some new news and earnings accretive announcements. Need to get more into the revenue per sales contract the company is producing as its easier to back out revenue metrics....at the moment the company has some 4700 paying commercial contracts so as this increases, how does this boost underlying earnings?.....if anyone had some insight here that would be great.

I havent looked at comps yet in this space which will give a better idea at where the company should be