@BkrDzn Yes, some further clarification is needed re the ARR...

@BkrDzn


Yes, some further clarification is needed re the ARR metric and what is included in it.



I agree with you 100% in relation to one off software/equipment sales.



There will have been some level of revenue generated from one offs in Dec Q, though as you say, unclear how much. There was captial allocation towards them, but we also are unsure of what inventory level were at start of quarter too.



I would think that those one off sales have occured at the later end of the December quarter (end of financial year in Latin American countries). The prospectus states that Dec quarter is historically where the majority of their one off sales occurs.



There is likely some form of payment terms associated with invoicing (30 or 60 days for example). Those sales would not have been reflected in cash receipts in the Dec cashflow and as you say will be regonised in the March 4C.



I also think there would be at least a month or two of cash lag for their Paas/SaaS contracts too from implementation date till actual cash hits the bank account. I say this because their model charges a set fee for a certain number of scans per month (contracted maximum) but a client may end up conducting more scans than the contracted maximum and get charged a certain amount more for the number of scans over the contacted max. The number of scans is obviously not know until the end of the month. I would think that would mean invoicing in arrears with then possibly 30 day terms from that invoice date. So 1-2month lag from implementation to first $$$ hitting account.



Prospectus mentions implementation ranging between a couple of weeks to a couple of months depending on the size/complexity/number of sites etc. of the client.



If this cash lag is the case, the bank balance would therefore be in a healthier position now than what it was at 31 Dec.



I would also like to see some clarification around this from management. This is a newly listed company. There needs to be some better explanation to investors in relation to seasonality, payment terms and cash lag, if it is significant as we suspect. Without this explanation the cashflow from the 4C looks a bit scary on first glance.



I think we will need full year financial reports (due end Feb) to look at in paricular H2 Revenue and Accounts Receivable, in conjuction with the March 4C to get a true picture. I would hope they provide proforma financial reports for ImExHS for the full 2018CY/FY so we can compare it to the 2017CY/FY rather than just the combined OMT/IME financial report.