Hi Papito :
Appreciate you putting that spread sheet together , something that would have been nice for the company to have presented as would have shown investors their predicted cash burn is surprisingly light considering they are building up considerable good will as an intangible on the balance sheet every time they increase their customer book.
Your revenue growth predictions seem to match the latest investor presentation graph , I get around $150k less receipts per month than you currently but faster forward revenue growth resulting in about the same predicted $800k a month in receipts as you by Dec 19 based on that presentation graph.
I also feel your expenses predictions look pretty good based on the limited info available ie the last half yearly which seemed to indicate around $670k a month in outgoings .
I differ from you in thinking that expenses are relatively easy to predict here , as they are using already amortised underlying tech on each new customer , its just a matter of getting the customer up to speed on the tech . (However tech stocks are not my forte so I may be totally off base with that assumption )
Hopefully by mid CY 2020 we should be cashflow neutral but actually have an increased market cap due to the customer book build which should neither show up as statutory or underlying profit if the company has a decent tax accountant and can prove that increased customer base is not yet an intangible asset (goodwill ) due to possibly being only non recurring revenue - I would prefer money spent on marketing to increase the client base than to go into paying tax even if they can only defer that tax to later
This is a classic case of where you initially want the company to be trading at a very high PE or no PE at all and rather have its value based on its increasing revenue growth .
Be interesting to see what the company is worth in say 2022 when both the Balance sheet and the P&L statement can be used to value the company on a FA basis .
EVS Price at posting:
10.0¢ Sentiment: None Disclosure: Held
