People! Don't look now (actually do look now) but our annual report has been filed! I'm about 10 minutes deep into it but here's the highlights I see right off the bat.
-Unaudited. We got our hopes up thinking this report would be audited since they hired an auditor not too long ago but it looks like we assumed too much. It would have been nice but at this stage very far from necessary. They had their reasons for hiring an auditor, this annual report was not one of them.
-They issued a million (restricted) shares for an investor who paid .038 per share! I fully back this method of raising capital and it shows you the focus Bonar is putting on doing this the right way. The first loan he received ($38.6k) had a very small interest rate (3% I believe) and now this capital they're raising is on very favorable terms as well and is for 10x as much. The company gets capital to continue to fund it's growth and operations and the investor gets a million shares at what will prove to be a very attractive price. Her return on investment there will be huge, imo. The shares are restricted so they won't even hit the market here until they're unrestricted, but regardless now that I think the market is going to take notice of us I don't think for a second the market will have a problem gobbling up those shares.
-Bonar is paying himself with a convertible note for 1.875m shares. You can talk trash but the man is putting in the work and leveraging a lifetime of connections to create and run multiple businesses and he's paying himself to do so. This brings his total to 6.875m shares. IMO there is 0% chance those shares hit the market, he's adding them to his 5m and holding for much higher prices.
Now for the real good stuff.
-Nice spike in revenue this quarter, a trend that I highly suspect has only just begun. $137k in revs at a cost of $91k.
-Another retired tax liability/variance netting them a net $6.6m on the quarter! After operating expenses this works out to a net income of almost $5.5m! Otherwise stated as a .11 earning per share! PR for this coming tomorrow I have to suspect, this is the sort of news that will catch people's attention. :o
So the O/S went up 1m shares and now sits at 48.3m but the float is the exact same. At 48.3m shares the market cap still barely sits above a million $ here and now today's financials are going to open people's eyes to how absurdly cheap that is. The revenues weren't earth shattering but they were $100k+ more than last quarter and we'll only see that grow from here. The market is slow but it's going to see that now.
The float remains at 38m shares and after almost 2 years of accumulation that's all held tight now. Look at how this trades but more importantly just watch how easily this will pop with some buying pressure FINALLY.
Like I said, expect a PR at least announcing the net income and .11 EPS, but you know we're going to see A LOT more updates coming now. If you've been following since they got current early 2018, you'll notice they've been putting the puzzle together piece by piece and this annual report is a huge revelation. Most people haven't the faintest clue how hard a stock like this, 10 year highs and a locked float, can run once the market catches wind. And oh yeah, after waiting so long for this filing, we're now about due for the next Q! I mean I'm sure they'll be late, but those could be coming very soon too and I fully expect yet another sizeable leap in revenue - imo over $1m this time.
Dare I say it? I think tomorrow could be fun. Watching the wires in the A.M. for a PR.
