my opinion is that every growth microcap finances their growth differently. Even though their convertible stock hides their true share count, the fully diluted share count is still modest for a microcap growing at a high rates for several years.
As any person in the stock market knows, growth costs money. Typically microcaps are back in the market once or twice a year as they double growth in consecutive years. ATVC hasn't done so. They are continually financing but haven't ballooned share count. The stock sales and conversions from preferred or convertible debt have financed tremendous growth.
I didn't like the convertible shares and the hidden dilution when I invested but do love the high growth, the big customers and the sector. The patents are going to pay back multiple times over the years because of the high growth coming to automated retailing.
As the stock chart shows, early investors have done well. While the falling margins have hurt profits, that is part of the price for getting fortune 500 customers, who demand price concessions. Walmart is famous for pushing their suppliers and AVT is no exception. We need more info to see if the big contract sales to Rug Doctor and Blue Rhino are worth it. Like most microcaps, it always takes longer than you think to see the profits show up in the P&L.
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