In terms of the drop in price, I would agree, but I would reverse the order of your arguments.
The dilution is done for now, and the upcoming 10Q will be more in line with the last one (unlike how the last one was vastly different than the previous years due to the large contract you mentioned), so there should be no investor shock.
Hopefully we have found our base, and we move up slowly from here. Quickly if news of new clients is released (as some posters have rumoured about).