That's a conservative estimate considering the CEO's projected revenues in the next few years. If you do more DD and learn about the product, the claims of being cash flow positive NOW, and the potential corporate deals... you'll be scooping up every share you can find.
I had a CFO friend do a hypothetial valuation based on industry,projected revs,share structure,....obviously MANY assumptions had to be made....he had .03 to .10 shorter term and .30 plus longer term