MD&A And Q1 financials posted on SEDARFirst Quarter 2017 compared to First Quarter 2016 The Company recorded a net loss for the first quarter of 2017 (the “current quarter”) of $280,404 compared with net loss of $802,714 in the first quarter of 2016 (“Q1 2016”), a reduction of $522,310 The sales and gross margin in current quarter were $1,619,454 and $633,761 respectively, compared with $1,244,538 and $434,524 in Q1 2016. Furthermore, the gross margin rate was increased to 39% from 35% in Q1 2017 as the result of the focus on building with multiple lower cost solar installers. Operating expenses in the current quarter were $810,430 (Q1 2016 - $1,068,523), a decrease of $258,093 due to lower marketing costs by 176,425 and payroll costs cut by $45,669, as the result of the Company restructuring of its management, negotiating with finance and power purchase agreement providers and investing in new, cost effective Customer Relationship Management technologies and tools.
The new sales team did $34,305,000 USD = $47 M Cdn in sales last year (12 months @ $2,858,750/month) If we assume potentially starting May 1 with 8 months left @ $2,858,750 = $22,870,000 = $31,331 000 Cdn sales potential in sales from May 1-Dec 31. + 8,000,000 Cdn projection in line with pre-existing revenues prior to acquisition. Note that the earlier PR on the first solar installation deal since signing the sales team has a number consistent with this valuation potential (2.8 million US). At a 39% gross margin rate that puts us at $15,339,000 Cdn gross margin... $15,339,000 per annum x 3x valuation (sector multiplier may be as high as 10) = $46,017,270 market cap Fully diluted 101 M shares OS puts us at a potential 0.46 CDN per share.... (this varies depending on sector multiple applied. Some people like to default to a 10 X multiple)
All just an opinion.
GLTA & DYODD