Google Finance
Filing
July 22, 2016
2016 Q1 Data
1.Basic Information
(1) History
The company was a reverse merger at 2009. Previously, it seems co-founded by Meg Spencer, and Douglas Hamilton at around year 1997. Meg served as the CEO until 2011, Douglas Hamilton as CTO till now. Later Daniel Thorne invested in the company and became the main investor. The company seems name after Douglas and Daniel. At IPO, Meg hold 4%, Douglas hold 1% while Daniel hold 48%. Currently Meg holds less than 1%, Douglas still holds 0.8%, Daniel holds 28% while the new CEO David Wolf (since 2011) holds 2%.
(2) Business
70% of its sales is from laser equipment used in IVF (In Vitro Fertilization). 30% revenue related to animal. Most of its customer are labs and research institutes. Very high gross margin ( >60%). The companies revenue grew quite consistently since IPO and turned to profitable since 2013.
(3) Management.
David Wolf join the company since late 2011, previously he was working at larger companies. He seems doing quite a good job and have a good past experience. Feels like a pretty humble person.
(4) Debt and Credit facility.
No debt and around 4.5m in cash.
(5) Insider holding, options, Insider trading info, share buy back.
The company only had around 21m shares at 2009 IPO and now it has over 70m shares. Deluded quite a lot. CEO holds 2%, while all insider hold over 30%.
(6) Employee numbers
(6) Employee numbers
(7) Auditor
(8) Industry comparison.
(9) Major events
2. Financial data.
(1)The company currently is trading around 0.18. Market cap $12.3m about 10 times P/E. Given its growth and profitability, this is quite a cheap price.
(2)It actively looking for acquisitions and target $30m revenue with 20%-25% EBITDA margin and then move on US exchange. If it can achieve that in 5 years, it could be worth $60m at that time.
(3)Its addressable market is around $1B and seems its product are in the high end.
4. Risk
(1) Continue dilution of common stock seems inevitable. Just how much it needs for acquisition.
(2) Its customers are probably quite concentrated, so main revenue may depend on a few customers.
5. Conclusion
Overall it seems a good managed company with growth potential and trade at a quite cheap price.
6.Links
http://wallstreetanalyzer.com/2015/12/08/hamilton-thorne-tsxv-htl-ceo-interview/
Sept. 17, 2016
Current price 0.275
(1) The company acquired an US company which has around USD$5m annual revenue and USD$1.5 EBITDA. For USD$7.25m including around USD$6m in cash and around 7m new shares.
(2) The companies new debt level is USD$7m compare to $3.5m before. Also the $4.5m cash might not much left. New share count should be around 80m.
(3) I estimate new interest expense would around 0.5m/year. New annual revenue should around $15m. Net income might be $1.5m to $2m per year.
http://wallstreetanalyzer.com/2015/12/08/hamilton-thorne-tsxv-htl-ceo-interview/
Sept. 17, 2016
Current price 0.275
(1) The company acquired an US company which has around USD$5m annual revenue and USD$1.5 EBITDA. For USD$7.25m including around USD$6m in cash and around 7m new shares.
(2) The companies new debt level is USD$7m compare to $3.5m before. Also the $4.5m cash might not much left. New share count should be around 80m.
(3) I estimate new interest expense would around 0.5m/year. New annual revenue should around $15m. Net income might be $1.5m to $2m per year.
