Kontrol Technologies Corp N.KNR

Share Price to Earnings

[Steve1CPA]

I did some very high level calculations on share price to earnings taking into account that KNR is currently operating at a loss. I used a net profit per earnings of $500 and $1,000 per unit to take into consideration manufacturing, sales, marketing, shipping, COGS, etc. I used a P/E ratio of 10 which indicates a higher risk venture. Here are the results: Sale of Units for Share Price $2.50 Net Profit per Unit $500 Shares issued 35,000,000 Price per share $2.50 P/E ratio 10 Share price factor 0.25 Annual profit before EBITDA $8,750,000 KNR Current Projected Annual Loss -$5,000,000 Net annual revenue needed before EBITDA to earn for share price $13,750,000 Net profit per unit $500 Annual # of units sold 27,500 Months of year 12 Monthly # of units needed to sell to make share price 2,292 Sale of Units for Share Price $4.00 Net Profit per Unit $500 Shares issued 35,000,000 Price per share $4.00 P/E ratio 10 Share price factor 0.4 Annual profit before EBITDA $14,000,000 KNR Current Projected Annual Loss -$5,000,000 Net annual revenue needed before EBITDA to earn for share price $19,000,000 Net profit per unit $500 Annual # of units sold 38,000 Months of year 12 Monthly # of units needed to sell to make share price 3,167 Sale of Units for Share Price $2.50 Net Profit per Unit $1,000 Shares issued 35,000,000 Price per share $2.50 P/E ratio 10 Share price factor 0.25 Annual profit before EBITDA $8,750,000 KNR Current Projected Annual Loss -$5,000,000 Net annual revenue needed before EBITDA to earn for share price $13,750,000 Net profit per unit $1,000 Annual # of units sold 13,750 Months of year 12 Monthly # of units needed to sell to make share price 1,146 Sale of Units for Share Price $4.00 Net Profit per Unit $1,000 Shares issued 35,000,000 Price per share $4.00 P/E ratio 10 Share price factor 0.4 Annual profit before EBITDA $14,000,000 KNR Current Projected Annual Loss -$5,000,000 Net annual revenue needed before EBITDA to earn for share price $19,000,000 Net profit per unit $1,000 Annual # of units sold 19,000 Months of year 12 Monthly # of units needed to sell to make share price 1,583

[MRB403]

Bro, Can we get that in English? I know you are trying to make a great point. Thanks.

[BCdude]

Hard to decipher what you're saying, as I'm assuming this info was in a chart? What I get from this is that if the net profit per unit for biocloud is $500, KNR would need to sell 38,000 units to justify a share price of $4.00/share, and if net profit is $1,000 per unit of biocloud it would require sales of 19,000 units to justify a $4.00 share price. Am I right?

[Macpherson99]

I think that this Same Principle was elucidated by Professor Irwin Corey.

[HTNYC1]

Haha. I was thinking the same about it being in a chart. I was also thinking that if they are only making 4% net margin ($500 per unit) on a one of a kind tech that is patent pending then we should all go home.

[BCdude]

I think at the start for sure the margins will be better than 4%. I would say 10% minimum, even for large orders, and probably more than that. I'll be very interested to see what the margins are, though we probably won't know for at least 3-6 months.

[HTNYC1]

I work in this field so can try and shed some light. New tech margins are at a minimum in the 30s and into the 40s and 50s for scarce and unique patented tech. Paul has stated before that it is a strong margin product. They may give some of that away with early order and bulk discounts but it isn't going below 20-25%. Add install and consulting fees for hardware and data setup etc and you won&