On 13 January the company announced that the CEO, John Annand would step down effective immediately by mutual agreement. It is always a red flag when there is a sudden and immediate resignation of a CEO or CFO no matter what reason is given.
When the 2Q22 4C quarterly report was released, cash receipts were down for the first time in over a year (-9%) though it was coming off a +31% increase in 2Q21.
The company has a market cap of only $12m, has $1.57m in cash and is marginally free cash flow positive. The share price has been supported by the major shareholder, Keith Knowles who has been steadily increasing his holding over the last few years to over 31% of the company.
It is hard to know why the CEO John Annand stepped down. Perhaps the growth in revenue was not strong enough?
Although the company is cheap and better than most microcaps in that it is free cash flow positive, the resignation of the CEO has increased the risk and there are probably better opportunities elsewhere as this is a very illiquid stock and hard to get in and out of.