Ann: Operations Update, page-39

You guys do realise that the following is now expected from recent announcements:

Cash receipts were $1.8mil in Dec Q.

After the "deactivation" event the ARR dropped to approx $4.6mil. Depending on cash lag from invoicing this translates roughly to $1.15mil a Q in cash receipts coming in

The more recent "migration" event, yes was mentioned in April 2018, but was the extent or quantum mentioned before now? No it wasn't. A reduction of $115k per month or $1.38mil in ARR or an immediate 30% drop in revenue. This is significant. Conveniently, they choose to change their reporting for this Ann and refer to the monthly reduction to revs rather than providing an updated ARR.

ARR will now be approx. $3.22mil - down from $8mil in September last year.

Cash receipts will now be tracking at around $800k a quarter.

Cash outflows are expected to increase this coming quarter to $2mil.

So you are looking at a cash burn of $1mil + this quarter. They have about 3 quarters to significantly reduce this burn or they will be out of cash.

To return to a SP of 10c+ will require ARR back in the vicinity of $7-8mil. I just can't see that happening anytime soon, if ever.

If you want to close your mind to alternate points of view that's your call. The reason I'm here is because I previously held the stock and I still have an interest in watching how in it pans out. The idea of a forum like this is for people to share their opinions. New comers to this stock would benefit from a wide range of views so they can make an informed decision whether to invest or not.