Level Setting...

All,

Just wanted to level set some facts on this one, and hoping people can provide some inputs in case I've missed something (this is based on released information to date):

Total Annual CARR (1H 2019) is 4,230,000 (increase of 27.8% in the past 6 months)
New CARR per Quarter: 1Q 2019: 402,000, 2Q 2019: 455,000

Target CARR for FY2019 is 6 million. Implies an increase in 2H by 42% (seems like a lofty goal). I'm expecting FY2019 software revenue to be around 5.22 million from V3. Interesting to see how much Solo can contribute.

Cash: 4,620,000 at 31 December. 

Total operating cash costs for Q2 were 225k higher than Q1 (fairly closely in line with expectation). New CARR is growing at a higher rate than this, which is helpful from a 'cash' perspective.
 
Expected operating cash costs for Q3 are 1,993k. This is actually lower than Q2 operating cash costs (2,056k). The Q2 estimates of costs in Q1 were fairly consistent with the actual, so hopefully this trend continues and operating costs don't blow out.

There is an expectation of around 400k being received as an R&D grant from the Govt. in Q3.

When Q3 results are released, it will be interesting to see if:

1) Growth in New CARR and Total Annual CARR continues
2) The company continues to reaffirm their Target CARR for FY2019 (6 million) 
3) Vault Solo (which had it's first revenue in Q2) helps contribute to the top line
4) Retention of V3 can continue at a similar rate (99.5% reported in Q2)
5) Costs can be kept under control.

Wait and see on this one. I hold with hope

There has been some interest in this recently on the buy-side, but I think the damage done by the accounting 'screw-up' late last year will take time to repair.