A small high growth company has just reported 2022 earnings a loss of $19.93 Million, on revenues of 75 million, as expected.

ERP is 5.5% and the Risk-Free rate is 5%. Tax is 26%

The company is initially rated B

Last year they raised $250 Million in debt via a semi-annual bond maturing 30 June 2032. They are not expected to raise any more debt for at least 3 years.

They also raised additional equity by issuing 10 million Ordinary shares at $50. The shares currently trade at $66.66, and there are a total of 15 million Ordinary shares outstanding.

Beta = 2.25

Revenue growth is expected to decline from 100% in 2023 to 20% in 2027, It will stay constant at that rate for 5 years.

2022 EBIT Margin was 10%. It is expected to grow to +40% over the next 5 years, then grow to 45% by 2032.

Initially depreciation is expected to be 5% of Capex, Net working capital adjustment will be 12.5% of sales, and Capex will be 40% of sales. After 5 years, and for the next 5 years CAPEX is expected to remain constant in dollar terms. Over the same period, depreciations will rise to 35% of CAPEX, and Net working capital adjustment will fall by 0.5% a year

The company does not currently pay a dividend.

In which year do you expect the firm to first be EBITDA positive?