It's a tough question to answer with any real certainty. What I do know is the following key points which might help:
Each quarter the staff costs are around $480k, advertising $30+k, research and development $330+k, and other working capital will vary but is often around $40k. So costs are $880k+.
Receipts from customers in the last quarter were about $80k, so without a capital raising or significant increase in cash flow from receipts from customers, then the cash won't last long. In saying that, they do have a couple of financing facilities available. 1./ a loan overdraft facility of $750k (another quarters costs), and 2./ a credit standby arrangement of $5million, which is an equity draw down available whereby they have the discretion to issue shares etc. So, they have options up their sleeves.
With the company now focusing on sales and distribution, and the fact that distribution is the key to sales and profitability, signs look positive. With discussions being well advanced with prospective distributors, the cash flow position does not concern me.
SIX Price at posting:
2.8¢ Sentiment: LT Buy Disclosure: Held
