RE:Not overly disappointed....I would agree with your comments, in fact I was expecting revenue more in the $2.8mm - $3.0mm range given Ag Leader loss so the slight beat was welcomed. After the call I felt more encouraged about the back half of the year / 2022 and beyond prospects.
1. They still expect the second half of the year to show recovery in the business, hopefully by Q4 they are at least cash flow neutral on a run-rate basis heading into next year.
2. Speaking of cash despite the high burn rate we've seen the MD&A indicated that management feels at least the next 12 months are covered meaning the burn rate should indeed slow or halt. Some additional comments on the call about R&D which is now 50% (vs. target 15%) of revenue with no intention to slow down shows you where they think the business is headed (take $3.4mm divide it by 15% and that's your run-rate revenue target most likely or therabouts which would be roughly $30-$35mm).
3. I actually thought the comments regarding Deere's acquisition were interesting. AJX is clearly well ahead technologically and solutions wise vs. Bear. Yet Bear sold for US$250mm, which is what it's worth to DE. As a stand alone company Bear would be worth no where near that amount most likely. This is why I think ultimately a US$400mm - $600mm eventual take out price for AJX is not out of the question assuming the buyer is an OEM, though I wouldn't anticipate that near term.