As we have an available CDY thread that regularly follows quarterly cashflows, I thought it worthwhile to begin one based on the more detailed half-yearly/annual reported data. This allows analysis of business and geographical sectors, which some posters appear to be concerned about. Since the reports also detail non-cash expenses they can provide a better indication of when the Company is likely to become earnings positive.
Beginning with a comparison of total income by sector, the first chart shows the gross income histories of the different business subdivisions over the last six years. The Midkine contribution is significant but necessarily ‘lumpy’ as a result of attracting government research grants once a year and one-off licence fee payments to augment regular MK-ELISA and royalties payments. The two Advangen subdivisions show more regular growth trends.
Doubling the numbers shown on the chart would give an indication of each division’s likely contribution to annual income. Overall the Dec17 half year has shown a good jump in gross income, and suggests total annualised income should soon reach the $10M mark.
The second chart allows comparison of HY expenses with normalised gross income, in which one-off licence fee payments have been excluded and grants averaged over both halves. The most important aspect of this comparison is the income-to-expenses ratio, which is plotted in the third chart. The Company becomes earnings positive once this profitability ratio exceeds 100%. Extension of its fitted trendline shows the mostly likely timing for that to occur is around mid-to-late 2020. Analysis of the quarterlies suggested a cash positive position could be reached by early 2019.
Finally, a look at sales revenues alone for the Company’s two business divisions shows strong and steady high double-digit annual growth to be continuing.
