I would have thought around .80 as well. Several months ago it was hanging around .78 without closeness to a contract. Look forward to the quarter report. Oil N Gas vertical could be quietly chugging along!!
They are on their way....but this contract does not get them to break even however IMO.
If you read last conference call, Lane says that they need 1.5mil of margin per quarter to break even. He then used sales of the sponge alone as an example, in which they get 50% margin on the product. Meaning they need to sell 1mil per month (500k margin) to break even. This is why people including myself thought they could pull in 1mil per month of any kind of revenue and break-even.
Another contract goes a long way...and anything in the oil & gas vertical that materializes is a big bonus.
Whatever their annual revenue is at any given time x4 is what I think they are worth as a buy out candidate in my opinion. They currently have a market cap of 43mil @ .70/share with 12 mil in revenue. Which makes them appropriately valued based on that metric.