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Re: hostastock post# 6053

Wednesday, 09/28/2016 6:56:11 PM

Wednesday, September 28, 2016 6:56:11 PM

Post# of 8579
Good evening, Hostastock,
Indeed as you've written, it is "good work" by the company, and it is also good work by you as regards the proximity of your own projections to the reported estimated reality in regard to sales for the fourth fiscal quarter.

If I may go a bit more into depth here, starting with your own calculations as the basis:
1. The nine month 10Q had year to date revenues of $4.45 million.
2. The NT 10K shows revenues of $6.5 million.
3. Therefore, the fourth quarter revenues were, as you calculated, $2.05 million.
4. The late July note from Paul K. gave the June revenues as $1.05 million.
5. If we add the June revenues to the nine month revenues, that takes us to $5.5 million.
6. ...which means that the sum of April and May revenues was $1 million, or an average of $500K, which is in line with the average monthly revenue of the nine-months ending March 31.
7. Therefore, something major in a positive direction happened in June, presumably international sales really kicking in, which continued into July, and hopefully has continued into the new fiscal year.

While I still think that the April and May revenue numbers should have been furnished when the June number was provided, that's just "old business" and not really relevant anymore. What is relevant is that a really conservative projection of revenues in the new fiscal year would be $8.2 million, if we just annualize the fourth quarter number.

But if we bring into the picture the July revenues of $1.2 million and use that along with the June revenues number of $1.047 million, that would lead us to project the new fiscal years sales to be about $13.5 million.

But now is when I bring out the caution signal. Until we know the latest number for issued common shares, we really don't have a way of knowing to what extent the stock may be undervalued in the market. But we'll know on October 13, I believe.