There is food for fodder of both camps (positive and negative) in the report.
Firstly, its great to see revenues. This is the first time that SLMU records some and shows that it is indeed well on its way. Kudos to MM for the Aussie acquisition which surely accounts for either most or all of this.
Secondly, this balance sheet is before DSTI took over most of the debt, so we'll see a much cleaner balance sheet for the next Q as a result.
On the other hand, how do you sell $800K worth of goods and incur $400K more of bad debt? That's a big flag of concern. Its bad sales and financial management, or there is more to it than meets the eye if its a "one off" then they should explain it.
The losses are not surprising for a reporting, early stage company. Yet again, to be stating that by 2013 they will have positive EPS when there is no visibility of which projects will conclude by then is hard to forecast. Of course, on a road show, you put forth a most positive light and even if we cut this by 80%, the fact that in their first "DSTI-managed year" they will be earning money is a great step forward.
I'm sure each side of the equation is going to try to focus on its view of its report. I think the most important markers are:
1. Revenues now starting to stream
2. Tender offer concludes
3. New management takes over at DSTI, including new CEO.
4. Samoa or other projects get shovels in ground or systems on roofs
