Datametrex AI Ltd V.DM

RE:RE:Last 6 Quarters From Sedar

[dirtydzn]

Do you get paid per word by DM? Ca-ching this must of landed you about $2.25.

Investor10X wrote: So if you want to "keep it real", then let's also keep it in perspective.  

1) this is a small/micro cap company; 
2) compared to other small/micro cap companies DM is doing extremely well financially with $14.9 million in the bank and growing verticals. If you disagree, stop whining and name calling and actually show me it isn't doing well by comparing it to other similar stocks; 
3) DM carries no debt that needs to be paid to an institutional lender and what little debt they have ($30 000) is considered negligible and therefore the company is considered to have a clean balance sheet; 
4) Institutional investors are more concerned about debt in a company then current revenue stream of a growing company, retail investors seem to be more concerned or focused on revenue.  DM has no debt and currently has very good revenue for a small/micro cap company; 
5) Yes, covid has been a significant source of revenue over the last few years and can end... and it can continue.  Regardless, it is part of their health vertical and part of this company and that revenue has allowed this company to be debt free and grow and expand verticals and add verticals without having to take on any additional debt from an institutional lender which also would have included share dilution on top of that.  The covid revenue could be viewed by some like a loan DM never has to pay back and this loan did not result in any additonal warrants or share dilution to the company.  That should be factored in as a significant bonus for the company regardless of when covid revenue ends.  A very enviable postition to be in by any company's standards.
6)  DM is not just sitting on that cash from covid revenue and using it to pad their pockets or just keep the lights on, they are actually putting it to work to build a viable and profitable company;
7) Due to the nature of DM's AI cybersecurity contracts, sales cycles are long and difficult to predict and so looking at quarter results does not give an accurate reflection of the company (See excerpt "A" and "B" below taken from the recent Annual Infomation Form dated August 18, 2022)
8) As of Dec. 31, 2021 DM has over $12 million dollars worth of contracts that they entered into or had been awarded that have not been realized.  $9.4 million is the remaining deal value for commercial contracts and $2.6 million is the remaining value for government contracts.  (see excerpt "C" below taken from the same report stated above)
9) Although cybersecurity has the potential to bring in a significant cash flow for the company, it's unpredictable nature leads us to the two new verticals of Medi-Call and EV which will be a far more predictable revenue stream.
10) Due to number 7, If you want to get a better view of the company look at the annual reports, not quarterly snap shots and you will see the tremendous progress DM has made over the years and how well financially they sit.
11) The entire market is in a bear market trend, the dow dropped over a 1000 pts (3.0%) on Friday.  The TSX about 299 pts. (1.5%), S&P 500 about 141 pts. (3.4%), NASDAQ about 498 pts. (3.9%), and the TSX venture dropped 15.32 pts (2.3%)   To make comments about any movement in a stock's share price, up or down, without also factoring the broader market and economic factors is ignorant. 
12) bashers and naysayers conitnually say that covid is a constant "unknown" and this is why the revenue is not counted, yet covid revenue has been more stable and predictable then the AI contracts.  So by that logic do we stop counting the AI contract revenue too??  Why don't we just stop counting any revenue as most revenue would be considered "unknown" until money is actually recieved by the company from the client, as clients can default on payments or go bankrupt.
13)  DM is doing very well and I look forward to seeing where the company goes from here.  Cheers to all!!

A

Our results of operations and our key business measures are likely to fluctuate significantly on a quarterly basis in future periods and may not fully reflect the underlying performance of our business, which makes our future results difficult to predict and could cause our results of operations to fall below expectations.

Our quarterly results of operations, including cash flows, have fluctuated significantly in the past and are likely to continue to do so in the future. Accordingly, the results of any one quarter should not be relied upon as an indication of future performance. Our quarterly results, financial position, and operations are likely to fluctuate as a result of a variety of factors, many of which are outside of our control, and as a result, may not fully reflect the underlying performance of our business. Fluctuation in quarterly results may negatively impact the value of our Common Shares.

Our sales cycle is often long, and it is difficult to predict exactly when, or if, we will actually make a sale with a potential customer. As a result, large individual sales have, in some cases, occurred in quarters subsequent to those we anticipated, or have not occurred at all. The loss or delay of one or more large sales transactions in a quarter would impact our results of operations and cash flow for that quarter and any future quarters in which revenue from that transaction is lost or delayed. In addition, downturns in new sales may not be immediately reflected in our revenue because we generally recognize revenue over the term of our contracts. The timing of customer billing and payment varies from contract to contract. A delay in the timing of receipt of such collections, or a default on a large contract, may negatively impact our liquidity for the period and in the future. Because a substantial portion of our expenses are relatively fixed in the short-term and require time to adjust, our results of operations and liquidity would suffer if revenue falls below our expectations in a particular period.

B
Our sales efforts involve considerable time and expense and our sales cycle is often long and unpredictable.

Our results of operations may fluctuate, in part, because of the intensive nature of our sales efforts and the length and unpredictability of our sales cycle. As part of our sales efforts, we invest considerable time and expense evaluating the specific organizational needs of our potential customers and educating these potential customers about the technical capabilities and value of our platforms and services. We often also provide our platforms to potential customers at no or low cost initially to them for evaluation purposes through short-term pilot deployments of our platforms in the exploratory phase of our business model, and there is no guarantee that we will be able to move customers from the exploratory phase into later phases. The length of our sales cycle, from initial demonstration of our platforms to sale of our platforms and services, tends to be long and varies from customer to customer. Our sales cycle often lasts six to nine months but can extend to a year or more for some customers. Because decisions to purchase our platforms involve significant financial commitments, potential customers generally evaluate our platforms at multiple levels within their organization, each of which often have specific requirements, and typically involve their senior management.
 

C
We may not realize the full deal value of our customer contracts, which may result in lower than expected revenue.

As of December 31, 2021, the total remaining deal value of the contracts that we had been awarded by, or entered into with, commercial and government customers, including existing contractual obligations and contractual options available to those customers, was $12,015,798. Of our total remaining deal value, as of December 31, 2021, $9,370,797 was the remaining deal value of our contracts with commercial customers and $2,645,000 was the remaining deal value of our contracts with government customers.

swyint123888 wrote: It's 5 am so give a guy a break if a digit is off here or there.....this is for my fellow investors that keep it real

Q1 2021

AI = 388,000
Covid = 18,561,000
Net Inc = 9,560,000

Q2 2021

AI = 771,000
Covid = 9,595,000
Net Inc = 850,000

Q3 2021

AI = 749,000
Covid = 8,842,000
Net Inc = 170,000

Q4 2021

AI = 2,143,000
Covid = 7,979,000
Net Inc = (Loss) 1,489,000

Q1 2022

AI = 2,118,000
Covid = 8,595,000
Net Inc = 1,352,000

Q2 2022

AI = 685,000
Covid = 6,942,000
Net Inc = (loss) 1,357,000

My guess why the market was down on the Q2 report is it's wondering if this downfall is the start of a trend or just a bad quarter. AI growth has slowed for 3 straight quarters now and covid is nothing more than a wild card when it comes to valuating the company, case in point we won't know until the end of September if the Actors union continues to test, this constant "unknown" is why the covid revs don't count towards valuation but clearly they keep the lights on and the company going, it's our bread and butter for 2 years now.

Besdies "new toy" developments / phase 2 gov contract Q3 at the end of November will be an important number, markets look ahead so it is no surprise to me we are where we are, have to turn the AI ship around and or start placing large "new toy" contracts....stay tuned.....coffee time, too much for the brain this early....haha