RE:RE:Undervalued stock@TakingStock, look at it this way:
- as per the NR, the 33-month (let's round it to 3 years) project will generate $9M, of which IAI expects to receive 15%, or, let's round up to $1.5M. This represents $500,000/year. I'm not sure what IAI's profit margin is but, for the sake of this exercise, let's say 50%, meaning that it will generate $250,000/3-year profit or roughly $85,000/year or $21,000/quarter - noting that this is the BIGGEST such contract ever issued;
- Q3 expenses were $813,408 - as such the $21,000/mo profit only shave off 5% to the quarterly expenses;
- 9-month revenues (gross) were $1.5M - roughly $500,000/quarter. As such, this contracts roughly contributes 25% to IAI's gross income;
- Q3 generated an operating loss of $221,535 - its lowest in 5 years
At this rate, it will take some time before IAI become EBITDA positive, not to mention the noteworthy dilution it's in the process of going through it's "largest known shareholder" ThreeD, whose CEO has been brought in by IAI to act as "Strategic Advisor".
Oh yes, and on March 20, 2023, the Company "acknowledged the contributions of its employees, directors and certain consultants" by implementing an Equity Incentive Plan (the "Plan") by granting equity-based incentive awards in the form of options, restricted share units, performance share units and deferred share units, namely, by 1,200,000 restricted share units to several directors and a consultant to complete the equity grants.
So, the question is, how many of those "great contracts" (Peel) will IAI need to generate in order for it to become EBITDA+ and how long will it be before investors can turn a profit on their investment...? I'd say it's sp will continue trading in the 0.04-0.10 range for several years to come.