For the past four years, the annual increase in recurring revenues is 12.9% (2021 $3,189,000 ; 2017 $1,960,000). Hardware sales and direct costs are at their lowest point in four years. For fiscal year 2020, AiriQ realized $2,096,000 in hardware sales and only $519,000 for fiscal year 2021. Similarly, direct costs peaked in 2020 at $2,483,000 and fell to a seven-year low in 2021 ($1,214,000).
For fiscal year ending March 2021, net income was $449,000, that is $264,000 less than last year ($713,000). The major culprit is the Canadian dollar. If the Canadian dollar had remained steady, then profits would have been similar to fiscal year 2020.
The total amount of subsidies received by the Company from the Canadian government from Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy for the year ended March 31, 2021 was $175,000.
Cash on the balance sheet has decreased by $382,000 and is $1,829,000.
AirIQ purchased 250,000 shares at an average price of $0.33 ($83,000). In April of 2021, the Company repurchased for cancellation an additional 198,500 common shares for an average of $0.27 per share or $54,000 plus a broker’s fee. The current stock (2021-07-16) price is $0.265. AirIQ is a thinly traded stock, it would be preferable for AirIQ to keep cash on hand for future acquisitions, or for research or for marketing.
AirIQ has a tax loss carry forwards of $16,554,000. It will take several years before AirIQ pays any corporate taxes.
For the year ended March 31, 2021, one customer represented more than 10% of total revenue (year ended March 31, 2020: one customer). This customer accounted for 29% of total revenue for the year ended March 31, 2021 (10% of total revenue for the year ended March 31, 2020).
Market cap is $8,420,000 ($0.265 X 31,775,074 shares). Deduct the cash on the balance sheet and the enterprise value is $6,600,000. AirIQ is trading at 2 times recurring revenues.
For fiscal years (2015-2019, and 2021) operating cash flows averaged $455,000.
First-quarter results (April, May and June) will help guide investors.