A Toll-Booth Microcap Hiding in Plain Sight

10x cash earnings, 31% royalty growth, a fresh NCIB, and insiders buying in the open market

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The company I’m sharing today is a rare case that checks every box on my list:

• A genuine toll-booth business. Hardware sold once, royalties collected forever

• Revenue up 26%, royalties up 31%, adjusted EBITDA up 112% year-over-year (nine-month YTD)

• All interest-bearing debt repaid. CA$16.2M of cash and CA$15.8M of net cash on the balance sheet

• Fresh NCIB in place to repurchase up to 10% of the public float

• CEO, Chair and CCO all buying on the open market

• Reported earnings obscure the real cash-earning power (accounting noise, not operational)

• Trading at roughly 12x EV to LTM adjusted EBITDA today, and something closer to 10x on my own forward estimates, despite every operational line moving the right way

I rarely find this many boxes ticked in a single microcap.

Let’s dig in.