I admit there was some scepticism at previous results, perceivably waiting for some evidence of scaling, but they have turned the screw in this quarter. We are finally seeing some evidence of operating leverage and we get a glimpse of how profitable this business could be with the margins, razor blade model and high-quality, sticky customer base it maintains.

Cash receipts totalled 48m, and costs are frankly nowhere near it – with R&D the largest contributor. Further evidence that payments will be lumpy, and this will often appear scary when we see high R&D, marketing, and staff costs without much intake. But this is a reminder of the nature of the business and the industry they operate.

Cash holdings increase from an already impressive 37m to 57.8m. With 58m in the bank and almost 50m received this quarter, all of a sudden the market cap of 220m seems incredibly attractive.

With an order backlog of 30m and ongoing collaboration with Lockheed Martin, the short-term outlook appears sound. With the company moving to a new Sydney-based facility (3x the space of the existing facility) you get the impression that management are confident of continued growth. We also get some hints from Oleg and co, with them “targeting annual production capacity of 300-400m” and outsourcing “lower-margin manufacturing to trusted third parties” to enable further scaling as needed. In truth, I remain concerned that one of the US giants will come knocking to obtain their IP, which would be a real shame for shareholders (in my view, anyway). Until that day comes, provided they continue to kick goals like they have done the last 12-24 months, I will remain a happy holder.