Good morning, Makinezmoney (great screen name, by the way!),
I agree with your enthusiasm though I can't understand your numbers. There are three "profit" numbers in the quarterly results:
1. The gross profit before general and administrative expenses came in at 936K. That 936K is not a bottom line kind of number.
2. The net operating income came in at 270K.
3. The (final)net income came in at 336K after taking account both "real" interest expense and various accounting entries having to do with accounting for debt instruments.
I think that followers of the company can be particularly excited about how general and administrative expenses for Q1 of this fiscal year actually declined from G&A of the prior year's first quarter, even as sales were increasing substantially.
Apart from what I've just written in this posting, I'm excited about one more aspect of the company's situation. If I'm reading the 10Q correctly, there's something like 70 million shares that could be issued upon conversion of the remaining convertible notes. That's not such a big price to pay in return for making the company nearly debt-free.
Let's say that the company could earn a $1 million final bottom line this year based upon annualizing the Q1 operating income results. If that $1 million were spread over 160 million shares, that's about .6 cents of earnings per share. Let's apply a price/earnings multiple of 30 to that (which is not outlandish in a growth company situation), then the stock would be worth 18 cents.
18 cents, or even just 9 cents - that leaves a lot of room for the price of the stock to grow from its current level of about a penny. ...to be reasonable, because the company still needs regulatory relief from the FDA and we can't be sure (though I think it will happen in the Trump administration) that there will be relief, I'd divide my 18 cents in half, and I'd view the current "value" of the stock as being 9 cents.
As I wrote at the beginning of this note, Makinezmoney, I share your enthusiasm at the moment!
