So cash at March 31st was $1.2M, plus additional SPP funds in April of approx $700K brings that to $1.9M.
I note that if you back out the payment of $700K for Kit Digital, last quarter would have been cashflow negative to the tune of $500K. I estimate the new contracts they have announced over the last couple of months (including today's) total about $1M over the next 12 months. I don't know if that revenue will be received progressively but best case it contributes an additional $250K/quarter so this quarter cash burn will be about $250K. Worst case the cash burn is $500K again.
So given that I don't see the need for a CR this quarter, but given the way the SP ha been suppressed by continual selling it appears the market either doesn't agree with that or its still discounting the company due to last year's management upheaval.
The 12 month low remains 3.0c and the chart still shows the price conforming to a downtrend. I would be encouraged to buy more at < 4c if the chart shows a higher low followed by a break of the downtrend with some decent buying volume.
Cheers, Sharks.
IVO Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
