Ann: ImExHS Announces an important new SaaS client in Ecuador, page-29

One off sales have historically been greatest during Q4 each year. Not sure of terms, but it would not be unexpected for there to be payment terms of 30 days. If that is the case there may have been some decent one off sales in December that have not hit the bank balance until post 31 Dec. Bank balance may not be as low as it seems.

They made $4.5mil rev in CY2017 off a much lower ARR metric back then, with a decent amount of one off sales of software/equipment.

H1 2018 saw $2.2mil rev with H2 (Q4 specifically) each year historically being greater than H1. Given they are talking up 42% CAGR in rev growth historically then I would expect there to have been decent growth and rev generated (especially in Q4) above the $4.5mil rev acheived in CY2017. If that has happened then I think there may well be some decent lag from one off sales in Dec that have not hit the bank until Jan. Of course if that is the case then they have not explained that properly and hence we are left with concern that they will spend more this quarter than what the bank balance was at 31 Dec.

The expectation of spending a further $1mil + on PaaS this quarter is good in that we can gauge that to mean there will be some more large contracts around the corner but it all comes down to funding that growth now.

Overall happy with the Ann but would have liked some further clarity around one off sales, and if there is any significant rev/cash receipt lag playing out.