Market Cap is less than 1X earnings?? What is going on here? Looks like a bargain to me. IFF trades at 2X revenue with negative earnings. Using that this company should have a market cap of $58M with a stock price above $5.

Brownie’s Marine Group’s Subsidiary, BLU3, Inc. Introduces Nomad Mini
Press Release | 04/21/2023
Pompano Beach, FL, April 21, 2023 (GLOBE NEWSWIRE) -- Brownie’s Marine Group, Inc. (OTCQB: BWMG), a leading developer, manufacturer and distributor of tankless dive equipment and high-pressure air and industrial compressors in the marine industry, today announced that its subsidiary, BLU3, Inc is now accepting pre-orders for its newly launched battery-powered tankless dive system, Nomad Mini.

BLU3 has set new expectations with the unveiling of Nomad Mini, and its proprietary DiveBoost™ technology, providing additional depth, increased run time and enhanced performance.

“We incorporated feedback from current Nemo and Nomad users to design an innovative product that’s portable and lightweight like Nemo and Nomad but hits the sweet spot between portability and performance. It’s another successful step in our mission to bridge the gap between snorkeling and scuba diving. And we are excited to see Nomad Mini inspire more people to get under the surface,” said Blake Carmichael, CEO of BLU3, Inc.

Chris Constable, CEO of Brownie’s Marine Group stated “The BLU3 team continues to be the innovation leaders within Brownie’s Marine Group. With the development of the Nomad Mini, the BLU3 team carefully considered user feedback by maximizing proprietary technology to give divers an exceptional experience from start to finish. With the much-anticipated launch of Nomad Mini, we are certain to see BLU3’s products make a significant splash in the market.”

Nomad Mini pre-orders are being offered to BLU3’s dealer network, as well as consumers. Those who secure a spot in the month of April will receive a free DiveBoost Kit.

“BLU3 is a trailblazer in the portable tankless diving industry. In just a couple of years, the BLU3 team has mastered the evolution of portability with Nemo, Nomad and now Nomad Mini appealing to an even larger demographic. Echoing the technology of Nemo and Nomad, Nomad Mini boasts the same features users enjoy most with the addition of DiveBoost to further enhance performance and power,” said Robert Carmichael, Chairman of Brownie’s Marine Group.

The Nomad Mini is available for purchase at www.diveblu3.com/product/nomad-mini starting at $1,299

To learn more about Nomad Mini please visit : Introducing Nomad Mini! - YouTube

Just a slight clarification, the Company has been managing SEC reporting internally since the new CEO was brought in. The accounting change was a result of the retirement of its prior auditors from its PCAOB audit practice.

The transaction may not have brought operating profits on day one, but, as I see it, BWMG made an acquisition with no cash out of pocket. $350K via a note (being paid back from forward earnings) and $1.4 million paid with common stock. The acquisition brought with it nearly $500K in cash and improved the working capital of the consolidated companies by over $800K. The only debt the acquired company carried was a PPP loan that was forgiven as of October.

This transaction clearly strengthened the balance sheet of the combined entities. Additionally, the acquired company was profitable in 2019 before COVID, and by the looks of the June 30, 2021 revenues, it is recovering.

From a balance sheet strengthening view, and the expansion of the business this was a great transaction for the company.