They have as little as $1.6M cash, and they are not profitable yet but good prospect ahead, profitable very soon. Good news EPIC 10 got approval, revenue will continue to surge. However the question is, how they will keep running their new manufacturing, sales for EPIC 10 with this little cash? Anyone guessing any dilution near term? This is an exciting small cap but these type of small caps do dilution all the time. imo
I don't believe they will do a dilutive stock offering. I believe they have a line of credit which they can draw upon if they need additional working capital. Also, while listening to the Q2-12 conference call, I believe I heard their CEO (Frederico Pignatelli) say that they are not going to dilute the shareholders with a stock offering and will use their line of credit instead. You can go to the Seeking Alpha web site and check out the Q2-2012 conference call transcripts to confirm my fuzzy memory. Don't forget that the insiders have been accumulating shares and have not sold any recently. Pignatelli himself has accumulated over 1.7 million shares (most at higher prices than today's stock price). His last transaction was an exercise of options for 100,000 shares at $2.58 per share in March of this year. You can check the Yahoo finance site for insider transactions to confirm this. I believe Pignatelli also said during the Q2-2012 CC that they will be cash flow positive in the fourth quarter. Also, the COO/CFO Mr. Furry re-affirmed their guidance of $57 to $60 million in sales for the year (2012) during his presentation at the L D Micro Summit yesterday (10/4/2012). I think it was a pleasant surprise that they received FDA clearance for the EPIC-10 product on October 1. They had previously said that it would likely come by early December. The early clearance should give them a full quarter of sales for the EPIC-10. It sounds like they have a pent-up demand for the product. It looks to me that the products are ready for sale and they now need to follow through with sales. IMHO "the table is set" and the train is about to leave the station. I am looking forward to increasing sales going forward from here. Do your due diligence and please correct any misunderstandings I might have. Good luck to you.