They were cashflow positive about 1-2 years ago when they were...

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Mista_Trix

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23/07/18

09:46

Post #: 34512912
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Originally posted by jaluma ↑

Thanks BT for the background.

Have they announced receipt of the $1m R&D rebate, it would be material given their cash balance, so I would have thought it got acknowledged somewhere given it was mentioned in the January quarterly.

What about the $565k in escrow, no mention of that being released that I can see in announcements, so not sure you can count those amounts until the company confirm they have been secured.

Why no quarterly cash flow statements? They are not cash flow positive, which I thought would mean they still need to prepare them, it would certainly take the guessing out of it. Not even a mention of their cash position in the sales update makes it difficult.

Anyway, in my experience, for companies that work with ARR, they always need more cash than you might expect to get them through to breakeven and $400k+ of outgoings (surely there are still some occasional one-off expenses over and above that figure!) a quarter is not breakeven. Most of the new revenue didn't come online till April, so they might be reducing the cash burn slightly now, but the cash balance is still going down at the moment and likely will be into 2019.

Directors have a responsibility to keep a strong balance sheet, operate as a going concern and the ultimate self-interest to make sure they get paid their directors fees, so I expect a capital raising at some point.

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They were cashflow positive about 1-2 years ago when they were still Pacific Environment. Then they sold the consulting arm (the profit making arm) to focus on the expansion and rollout of the SAAS product.

They dont seem to mention the R&D rebate, it's always just something that happens and has popped up in the books.

Cool, agree to disagree. I think you're in the minority on this point but I hear what you're saying.

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They were cashflow positive about 1-2 years ago when they were...

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