A Linux Hardware Vendor Is Valuing Itself At $75,000,000 USD
Purism announced they are facilitating a first public offering of shares on StartEngine, a web platform for investing in startups. They are aiming to raise money at a $75 million USD valuation for the company.
With that offering they put out some of their financial information including that revenue and sales for 2022 were $8,197,007 while the cost of goods sold was $4,234,581. However, they have $6.7M in short-term debt and $15.1M in long-term debt. Their 2022 net income was -$478,999 compared to -$2,718,810 for 2021.
Their SEC filings have some interesting nuggets. They are basing their self-assessed $75,000,000.00 valuation on a 9.15x revenue multiple. Their SEC filing justifies this based on Google acquiring Android for $50M in 2005 and comparing their efforts with Librem 5's PureOS to the early state of Android at its time of acquisition. Their other justification is that IBM acquired Red Hat for 10x revenue in 2019. And they go on to note that both Red Hat and Purism are a top 5 contributor to the GTK toolkit and both invest in the Linux desktop.
Their SEC filing notes most of their debt is from convertible notes. They also note they are in settlement negotiations with a plantiff over breach of contract on a convertible promissory bridge note, with one of their settlement proposals being to transfer the party 833 Librem 5 smartphones.
Their report also notes most of their revenue ($2.58M) came from laptops last year compared to $2.4M on cellphones, $834k on other hardware sales, $105k on accessories, $62k on subscriptions, and then $2.13M on support services.
In any event some interesting reading with their filings for those curious about the world of boutique hardware vendors.
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