RE: Revenue is up!I do want to be a party pooper, but I feel that some investors that are posting here are quite out of touch as to what this company is worth.
According to the recent financials:
Current Assets = $54,531,000
Total Assets = $320,127,000
Current Liabilities = $158,783,000
Other Liabilities = $36,533,000
Shareholders Equity = $124,811,000
As you are all aware Total Assets = Total Liabilities + Shareholder's Equity, and Working Capital = Current Assets - Current Liabilities.
The Company has -$104,252,000 in working capital, which means that they need to raise capital to meet current commitments. There are a few ways of doing this: issue more shares, bonds, and convertibles, or sell their assets (i.e. property, plant and equipment).
If assets are sold, they usually do not fletch their full value, due to many reasons. Even if there are willing buyers for components, the most the buyer will pay is $0.50 on the dollar. Why you ask?...Well...the main reason is that equipment, when capitalized, have a labour component with the asset. For example, a $1,000,000 conveyor system is installed, of which, $500,000 is recoupable materials and $500,000 is labour to install the conveyor.
Having said this, if we adjust the working capital deficit as an equivalent value of the companies "hard" assets, we can better evaluate the worth of this company. It will take 2x$104,252,000 in assets to pay the outstanding commitments. This is the best case situation.
Now let's rework those numbers again:
Total Assets = $320,127,000 - 208,504,000 = $111,623,000
Current Liabilities = $158,783,000 - 158,783,000 = $0
Other Liabilities = $36,533,000
Shareholders Equity = $75,090,000
The B.V. of the company (as a going concern) is $2.20 per share at best. If you assume $0.35 on the dollar, then the B.V. works out to $0.64 per share.
If the company was to wind-up operations, then certain non-tangible assets need to be written-off (i.e. Deferred costs, goodwill, & future income tax). These assets total 7 million. The book value of the company is now between $0.44 and $2 a share.
Last, but not least, to put the nail in the coffin, there is the litigation which needs to be factored in. "No amounts have been accrued in the consolidated financial statements as the Company does not believe that any amounts will ultimately be payable as a result of the alleged patent infringement actions."
The current share price ($0.43) reflects the real uncertainty of this company as a going concern.