, I've spoken with Peter today and the outlook is getting better with every qtr. Margins will increase and there are many ways for Peter to improve them.
Mesh exclusive deal runs out next week but iit doesn't matter. In fact he might be able to write a better deal than what we were offered when it was signed.
We've switched to Ernst and Young and that matters with institutional buyers and the international crowd for future considerations. They also wouldn't have accepted us if there was no room to see the company grow. It's a vote of confidence for the company.
He's trying to manage cash to last as long as possible and with revenues we may be able to stretch until year end(calendar year)
It's best we haven't had lots of PO's because we may have lost those contracts by not being able to fill the order in time. Slow, steady growth is our best option and we are achieving that.
The 3 new board members cost us about $400,000 in stock options and that won't be an expense in the next qtr-Helps bottom line.
They each bring great technical and wireless backgrounds with all their connections both domestically and internationally. They aren't looking to farm out the install process until the systems run flawlessly. Act wants to control that side for now. Eventually it will be a possibility. Our installs only cost us on the initial install. Our growth or recurring sales, the mine installs the nodes themselves.
Active Secure sales went from $104,000 to $165,000 last qtr and they will continue to grow that side. Better customer service will help and the prospectus money has allowed for that.
All in all, we are seeing steady growth, profit margins will continue to increase and the system is constantly being improved. Recently a mine we are installed in had a complete power failure but the phones worked when they called down into the mine.
We do need new sales and believes we will achieve that. They will announce material sales and po's if they are multi mine or a big cash sale.
I also heard some Paradigm numbers from another source. $5mill this year. $10 milnext fiscal year and $19-20 mill in 2012. They also expect profitability in 2012. .20 cent SP projection in the year.
Looks like we are on our way to becoming viable and we do have a great product but still working out the bugs as all systems are while dealing with the complexities of the different mines
