Comparing DM and FOBI I realize that FOBI and DM are not in competition with each other and do different AI tech, but if you want to compare another small cap venture AI company with DM than this would be another example of just how undervalued DM is in the AI Tech sector.
FOBI
$4.8 million in cash
Last 9 months of revenue:
Q4 was $147 533
Q1 was $580 317
Q2 was $922 823
Total = $1 650 673
Current Market Cap: $121.14 million
Currently trading at 73.4x their 9 month revenue
DM
$20 million in cash
Last 9 months of revenue:
Q1 was $10 821 697
Q2 was $10 448 303
Q3 was $19 045 888
Total = $40 315 888
Current Market Cap: $60.38 million
Currently trading at 1.5x their 9 month revenue
DM has 4.17x more cash in the bank than FOBI, 24.4x more revenue than FOBI and is trading 58.9x less in valuation when compared to FOBI.
Now I know the bashers are going to immediately point out that much of the revenue is Covid money and yes, that is true. However, that money is still part of the revenue for this company, period. You can't take away what is already there.
However, the AI growth is still growing quite well. So even if we start to look just at the AI revenue the company is still moving in the right direction and is way undervalued based on what FOBI is getting for their current AI Revenues
Q1 AI and Tech + Other = $484 952
Q2 AI and Tech + Other = $852 972
Q3 AI and Tech + Other = $1 979 333
Total = $3 317 257
DM has 2 times the AI revenue than FOBI over 9 months and that would put DM currently trading at 18.2x their 9 month revenue for the AI only. That is still 4 times less in valuation than what FOBI is getting for their 9 month revenue. So on AI alone DM would be trading at $0.68 with that AI revenue and that would be equal in valuation to what FOBI is getting for their 9 month AI revenue at their current market cap. And don't forget FOBI was trading near $4 about 5-6 months ago. As you can see DM is still way undervalued.
Let's go further...
Q4 2021 and Q1 2022 AI and Tech is approx. $4 750 000 so far. This doesn't include the $40 million AI contract from the government. However, if we assume DM walks away with $36 million of the $40 million contract over the next two years than that works out to $18 million per year on that 1 contract. Divide that over 4 quarters and that works out to $4.5 million per quarter. Add $4.5 million for 3 quarters (Q1 to Q3 2022) and than add the already known $4 750 000 DM has for Q4 and Q1 and we have $18 250 000 for Q4 2021 to Q3 2022 (12 month revenue). And this number doesn't include any other AI contracts over Q2 and Q3, nor does it include Medi-Call or any other revenue.
Now let's cut the known Q4 and Q1 AI tech of $4 750 00 in half to $2 375 000 for just Q1 to make it easy and we can safely guesstimate that DM has already got approx. $20 375 000 ($18 million + $2.375 million) for AI tech for all of 2022. Again, this does not include any cash in the bank, any Medi-Call revenues throughout 2022, any additional AI contracts for 2022 or any aquisitions made that would add revenue to the company.
Now if you want to play around with 9 months of AI revenue for DM in 2022 based on the calculations above that guesstimate would be $15 875 000. Give DM the same 73.4x valuation that FOBI currently gets for their 9 month revenue and we have a $3.28 share price! And that is AI ONLY!
So for the bashers out there, no matter who you compare DM to, no matter whether you add covid money or not, DM is significantly undervalued compared to other AI tech companies.
And just for fun let's take the known 9 month $40 million revenue that DM actually has so far and give that the same 73.4x valuation on revenue to market cap that FOBI gets for 9 months of revenue and DM's share price is...
.... $8.21 !!!!!!