Hey - sorry for the delay - Dan asked me to answer this one a couple of days ago and it completely slipped my mind.
First off - full disclosure I own Greenlane, which I believe to be a solid company. The problem however is two-fold. First, when Xebec (XBC) got caught up in the accounting scandal which eventually led to its downfall, other players in the space were negatively impacted - this included Greenlane. However, this is 'throwing the baby out with teh bathwater' so to speak, as Greenlane has had no issues like that. Generally, I am bullish on the technology of biogas systems to produce renewable natural gas (RNG). This is a form of renewable energy that is becoming more and more popular. Greenlane generates revenue through the sale of these systems and aftercare services. While it has begun to make inroads in North America, it derives the majority of its revenue from Europe.
As a young and growing company, it is not yet profitable. That said, it has been able to post healthy revenue growth rates, doubling in size in both 2020 and 2021. As it get larger, it'll be increasingly difficult to maintain this level of growth, but it still has plenty of runway. Through the first nine months of the year, revenue has jumped by 42% to $54.3M and it had a sales pipeline of $900M. As you can see - plenty of room for growth. It has also been announcing new contracts every few months, which is an indication that demand remains strong for their products and services. It's most recent announcement was a $4.6M contract for a dairy RNG project.
That said, this is a small cap that requires capital to grow and that operates in a new and emerging industry. Those factors in the best of times bring about additional risk. In today's risk-off environment, it becomes even more difficult for a company like Greenlane to get investors attention. IMO, while the future does look bright for Greenlane, it will remain under pressure so long as inflation runs rampant and rates continue rising as this will continue to be a risk-off period. With that in mind, it is only for those with a higher risk tolerance able to withstand volatility and should be considered a speculative play.
Mat