Assuming 90k in 4th Quarter Sales, seems this is a 50% quarter over quarter increase in sales! Right? Ok, it's not $5 million per quarter, but huge in terms of real proof that others will pay dollars for Nano's products, and very good incremental sales. Assuming 1/3 profit and $150k per quarter burn rate, company would need $450k per quarter sales to become profitable. Therefore $90k is 20% there, after roughly 13% in 3rd quarter. Growing at 50% per quarter, Nano would be profitable in another 4 such quarters, OR with one $500k order. Ok, since it's been reported 'essentially ALL' of Nano's sales to this point have been to our favorite 3rd party, mostly for use on government projects, what's the changes that the government COULD ink a $1/2 million dollar contract?
Thanks for that bit of reasoning, PDE. On first read, it looks very reasonable. Again, this is the sort of thinking that seems most meaningful when trying to understand the trajectory of the stock, based on rational analysis of the real dollars.
I'm waiting for EPA to put out another write up. As they seemed quite happy with results so far and if I'm not mistaken, wasn't their mandate to have their drinking water regs., test procedures, etc, etc. in order by the end of 2012? I would think(?) we would hear more from them in the next few months.
Coal, I think EPA alliance could be huge, but new regs will take a long time to kick in, and there will be lobbying for cheap alternatives to Nano. Would be great to see this one turn into a space where Nano's tech would be the dominant solution.
Realistically, $90k wouldn't be 50% Qtr over Qtr growth when you consider that the 3rd Qtr sales numbers were based on only 1/2 of a Qtr. I would add that I think, considering all of the 3rd Qtr sales were to one company, the number of sales is at least equally as important as the sales $$$. In other words, in addition to sales growth, I yhink it is important that we see evidence of growth in our customer base. After all, sales to only one research company isn't going to sustain us long term. We need to see evidence that other companies believe in our product also.