With 12 mil in the bank and i remember recently reading that the monthly cash burn was at about 400k. If we expect cash flow positive at an arr of 12mil which would be 18months off at the latest (if they hit targets which they are currently ahead of) which implies costs of 6mil/half cf current costs and expenses of 5.3mil/half, therefore the cost base shouldn’t increase by too much from here and we should easily reach cash flow positive with the current cash reserves (and IF, and that’s a massive if, targets are hit - I’d also expect some of the options to get into the money and r&d refunds to help).
they won’t be paying tax for a while with accumulated losses of 17mil. What do you and plough think of capitalised costs of 1.5mil last year. Probably seems about right to me, as much as I like them to expense all costs, it probably isn’t appropriate given the spend on development currently. They certainly aren’t being aggressive though imo, but clearly at this juncture the cash flow statement is the most relevant financial document...
EVS Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
