Agree the current project tenders will not cover much of the current cash burn but this is the pipeline that has been built in the 3 months from February, with emphasis that it is exclusively from the direct sales teams established and not the channel partners with a much wider reach.
Also remember that their product produces an annuity style of "high margin" ongoing revenue collected monthly (hence the expenses quoted as a monthly cash burn) so new contracts will contribute to revenue not long after establishment.
I agree that it is frustrating that the pipeline seems to be growing rapidly with the actual sales not keeping up although the "growth" slide that has been talked about on here does allude to the fact that enterprise wide sales are a key focus going forward.
To me the sale of the consultancy is the make or break for EnviroSuite as it will be very difficult to raise capital again if they burn through the sale proceeds without a significant increase in subscriptions. Obviously there are divided views on whether they will pull this off which is why the enterprise value is currently around cash backing (assuming sale is completed), not allowing for any future growth.
I believe that as a company they have shifted a sales approach to much more targeted opportunities, seen by the more systematic product development which seems to be geared towards the interaction between their partner consultancies and the software platform.
This one is a hold for me currently as I am happy with my position size going forward, but due to the reasonably low amount of shares actually trade able on this one once a sniff of continued sales momentum is seen it will run fast as it has previously.
EVS Price at posting:
6.7¢ Sentiment: Hold Disclosure: Held
