Ya, something doesn't add up here. A quick look at their Q2 financials may shed some light on that. They've been losing over 4 cents per share per quarter for at least the past 2 years.

Snippet below. Nice contract from the US gov't but they are going deeper into debt to get it done and I have no idea how much they plan to charge or what their margin is on the product they produce.

Long story short, they appear to doing great things but perhaps they don't know how to make money while doing it. 2 very different things. Alas, I'm keeping an eye out here still as this is the kind of company that could break out in a large way.

The total costs of the research program are estimated at US$40.3 Million. DARPA will provide approximately US$21 Million

while the balance of the required funds must be provided by Medicago USA. To this effect, on August 10, 2010, Medicago USA,

entered into a lease agreement with ARE-NC Region No. 6 LLC (the “Landlord”), an affiliate of Alexandria Real Estate Equities

Inc., under which the Landlord undertook to provide a construction allowance of approximately US$13.5 Million with respect to

the construction of the New Facility and in consideration of which Medicago USA agreed to lease the New Facility during a term

of 15 years. The remaining approximate amount of funding will be provided by Medicago.

The yearly base rent obligation for the New Facility shall be approximately US$1,350,000, subject to a fixed yearly percentage of

increase. Medicago shall also be responsible for all operating expenses of the New Facility.

With respect to the construction, Landlord will grant Medicago USA a construction allowance of US$13.5 Million, such

construction allowance corresponding to the current estimates of the construction costs. Medicago USA will be responsible for any

construction costs in excess of US$13.5 Million