Good update and broadly in line with the assumptions in my valuation (so don't feel the need to update it for now).

Market seems to like it - up 6% on reasonable volumes (for Austco shares at least).

DISC: Held (SM and IRL) and continuing to add to (IRL)

Bull Case:

- $7m in cash and no debt

- Strong product offering: They seem to know their market, so have a good level of optionalty while also not trying to be "all things to all people" and as such watering down their core competency.

- Strong sales momentum coming out of Covid and catching up on the backlog of sales orders

- Great gross margins (for software plus hardware business) of 50+%

Things to watch:

- Continued sales momentum - increasing revenue and sales orders

- Software and SMA revenues as a % of revenue - ideally I'd like this to increase, but ultimately as long as the gross margins stay high it is not that important. It would be nice if they started reporting on actual recurring revenue as well.

A largely stagnant company - sales (in c/share) have gone nowhere in the last 10 years.

Inventories have ballooned in anticipation of a major sales push that history suggests, even if successful, will not last.

DISC: Held (and working on the bull case - but felt it necessary to highlight the counter-point first)