Comparing DM with a couple other companiesSo let's make a few fun comparisons since companies like Therma Bright (THRM) and Empower Clinics (CBDT) have moved up significantly since their summer doldrum lows on Covid tesing news.
Therma Bright (THRM) - Current share price $0.51
- 219.41 million shares outstanding
- based on current revenues and 10x valuation share price should be = $0.21
- Currently receiving 24.3x at $0.51
Sorry, I didn't see any Q2 filings on Sedar for THRM, the most recent information I could find is their June 30, 2021 MD&A. As of April 30, 2021 their nine months ended generated a total revenue of $3.5 million,
net working capital of $1,922,968 (July 31, 2020 – $217,161). The Company had cash and cash equivalents of $2,105,623 (July 31, 2020- $1,061,767). Net cash increased mainly due to financing activities. Net loss totalled $2.28 million (April 2020 - $48 431) an increase of $2.2 million.
Operating activities were affected by net loss of $7,418,915 plus non-cash items stock-based compensation of $4,574,000; shares and warrants issued for Orpheus of $347,000 and amortization of $41,846. The Company has minimal operating revenues and therefore must utilize its funds obtained from the equity financing and other financing transactions to maintain its capacity to meet ongoing research and development and operating activities.
The Company’s has a working capital of $1,922,968 at April 30, 2021 and is sufficient to maintain its general and administrative costs for the next 12 months and therefore financing needs to be raised. As at April 30, 2021, the Company had 19,675,000 exercisable stock options outstanding that would raise approximately $4,772,000 if exercised in full.
So based on the above information we can give the company a current run rate of approximately $2.3 million for 6 months so $4.6 for the year. Yes, I know run rates are only a snapshot of current revenues which can change drastically up or down in the coming months. However based on that, THRM share price should be: $4.6 x 10 valuation = $46 / 219.41 = $0.21
Empower (CBDT) - Current share price $0.465
- 333.40 million shares outstanding
- Q1 $2.0 million in Revenues
- Q2 $0.8 million in Revenues
- 6 months ended $2.8 million = $5.6 million run rate for the year
- $5.19 million in cash (June 30, 2021) $7.13 million (March 31, 2021) About $2 million burnrate each quarter.
- Total assets $10.8 million, Total Liabilities $12.1 million
- I will not be counting the $25 milion loss because that's not a real loss, it is due to warrants being exercised at a higher price than they were issued.
- Based on current revenues and 10x valuation share price should be = $0.17
- Currently receiving 27.7x at $0.465
Again, I realize that the run rate can change drastically up or down, but most likely up as Empower opens clinics and their covid testing increases in the US and MediSure revenues are added For the long-term I believe Empower will be a fantastic company to be invested in, but there's lots that still needs to be done.
Datametrix (DM) - Current share price $0.17
- Q1 $19.8 million in revenues
- Q2 $10.4 million in revenues
- 355.17 million shares outstanding, 425 fully diluted (did not include this with the other two)
- 6 months ended $29.5 million = $59 million run rate for the year
- Cash and cash equivalents = $10.5 million
- Consolidated segment asset total = $38.2 million, Total segment Liabilites = $7 million
- long-term debt $30 000
- Based on current revenues and 10x valuation share price should be = $1.66 ($1.39 fully diluted)
- Currently receiving 1x at $0.17
- If DM was getting an average valuation that the other two are currently receiving (27.7 + 24.2 / 2 = 26x) then the share price would currently be sitting at $4.32 ($3.61 fully diluted).
So there is certainly a very large disconnect between DM's revenues and the current share price. And I know people will point out the AI revenue is still low, but take a look at those other companies too. Empower has not opened a single clinic yet and Therma Bright's balance sheet and revenues are cr@p and will certainly be doing another financial raise of cash.