I sincerely hope you're right, however the intention to raise capital seemed pretty clear in the most recent update.
With ~$800k left in the kitty at the beginning of this quarter, I would have expected that if not CFP that cash burn would certainly be substantially less this quarter, so that even if a raise was required in future, they could take the time to deliver a solid quarter, higher SP and less dilution for holders.
With respect to Brazil, China & Bolivia, announcing $400k, $70k & $40k(?) AUD of microchip orders is great, and should be recognised as revenue this quarter, but it doesn't translate to cash until they are shipped. What matters now is cash flow.
I don't believe the microchips themselves are high margin. Hopefully, FRX had a heap of inventory that has been expensed already, and the cash when received will fall directly to the bottom line. I'd expect that these deals will add $200k this quarter (1/4 of the Brazil annual commitment) and the entire China order, plus some of Bolivia. Any data purchases that flow through will be on top.
Rankings in the Brazilian & Bolivian App stores have been very strong, and with outbound tourism numbers of ~15 million per annum, the market opportunity of these countries would be roughly equivalent to ANZ. I'm expecting a significant revenue contribution from South America this quarter.
The Middle Eastern countries are also continuing to rank highly, and I have noticed that FRX are running hefty discounts for data and starter packs for Ramadan, so hopefully this also translates to big revenue in a similar fashion to last year.
China has 130 million outbound travellers annually, and to date FRX have really made no inroads into this market. If I start observing some traction there, I'll be buying heavily CR or not.
@brendankok if you are so confident there will be no raise, why aren't you mopping up all the <10c sells? ;)
FRX Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
