I have been a holder in this stock in the recent past, and still have it on my watch list.
I had a quick look at it after I saw the share price at 3.0
The sales figures may have disappointed the market I suspect.
Revenue for the quarter ending 30/9 (reported today) was $634k.
This compares to revenue in the last quarterly (ending 30/6, and reported to market in announcement on 29/7) of $650k.
I also looked at the annual report announcement of 31/8. In that, full year revenue for 15/16FY was $2.74 million.
Divide that by 4 and today's figure does not look compelling.
Management announcement is comparing today's figure against that of 12 months ago. Nothing wrong with that, but holders were seeing past that in my opinion.
The cash burn recorded in today's announcement also seemed a little concerning. Less than 12 months worth in the kitty based on the figures given today. This could create capital raise concerns in my opinion.
Management have painted the story reasonably well, but it's the revenue and bank balance that count. Revenue that is currently flat (at best) and (based on figures in cashflow statement today 1.0 to 1.9)) only enough cash to last for 6 months or so (unless there is a sudden increase in revenue, without similar increases in costs).
Not trying to down ramp, just telling it as I see it. It will remain on my watchlist, but that's about it for the time being.
It's up to you to decide what decisions to make from here.
VLT Price at posting:
3.0¢ Sentiment: Hold Disclosure: Not Held
