By Ian Gilson, CFA
We have extended our estimates through 2014 based on a gradual acceptance of the Algae Appliance in the oil field and assuming a royalty/fee based revenue stream. Under our estimates the company should be profitable in the third quarter of 2013.
Over the past six months the company has raised money in a number of transactions. This has increased the number of shares and warrants outstanding. Our estimates assume the warrants will not be included in the full year share count until 2014.
The company has added a third independent director to its Board. The importance of knowledgeable directors on the boards of small companies should not be under estimated. They provide expertise and contacts that help companies grow. They can help management avoid the pitfalls that occur in growing a business.
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