Hi @Matt48 I sold out recently. I think the sale is good news as...

Hi @Matt48

I sold out recently. I think the sale is good news as it makes the company easier to understand and value as well providing much needed cash. The market was attributing no value at all to Envirosuite prior to this announcement and that will change now.

The other key information in the announcement is that Envirosuite generated revenues of $1.7 million last year and made an EBITDA loss of $3.3 million as a standalone business. Generously assuming that no further cost will be incurred, roughly speaking they need to win 55 more sites @$60k to break even at EBITDA level.

Then there is the question of how much software development cost is capitalised. $1.3 million was spent on intangible assets last year and I would imagine most of this also relates to Envirosuite.

All in all I think they are probably still years away from cash-flow break even but it all depends on growth rates. So far, these have not been disclosed.