Is it just me or is PEH an incredibly low quality earnings...

Is it just me or is PEH an incredibly low quality earnings business?

Of their $1.771m profit before tax, $1.597m (or 90%) was from a R&D tax incentive. 2014 was also propped up by a similiar grant. To make matters worse, they are yet to actually lodge the claim for this and receive the cash.

They also capitalised software development expenses of $1.1m, which would have significantly reduced profits if expensed.

I agree that Envirosuite looks interesting, I just find it hard to value PEH as the core business is essentially earning slim to nothing.