A New Position: Revenue Up 94%, Patented IP, 10x Capacity Locked In

Profitable, insider-aligned, debt-free, and quietly compounding a recurring revenue tail behind every device sold.

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Gore-Tex. Dyneema. 3M Scotchgard.

The most valuable companies in industrial materials don’t sell finished products.

They sell ingredients.

They embed their branded, patented material inside somebody else’s premium product, then collect margin every time that product sells.

Today’s company is attempting to become the next of these.

On June 12th, I bought it into the Schwar Capital portfolio at $3.18 CAD - a 2.6% weight. The position is up roughly 13% as of writing.

And on June 24th - twelve days after I bought - the company reported the strongest quarter in its public history.

The updated numbers are worth paying attention to:

• Revenue of $3.06M in the most recent quarter, up 94% year-over-year - a record

• First-half revenue up 90% to $5.39M

• Gross margin of 44% - the sixth consecutive quarter inside the 40-45% target range

• Material delivered to 12 new customers in a single quarter

• Pack & Bag - the newest vertical - now 19% of quarterly revenue, up from 3% a year ago

• Patent protection on the core process running through mid-2037

• $13.7M of cash on the balance sheet, against a related-party loan repaid in full

• The lease for a new facility just signed, funding a ~10x manufacturing capacity expansion

• ~34% insider ownership; the former President of the world’s leading competing fiber technology sits on the board

Today’s company is...