Quarterly Trends, page-81

OTC cash inflows of $748K for the June18 quarter were unexpectedly low, whilst the sales revenue figure of $1.34M was not unusual. This anomaly between cash and revenue recorded for 4Q18, as shown by comparison in the first two charts, exemplifies how terms of payment delays can cause revenue and cash receipts from the same sales events to fall into different quarters. A similar effect was observed when sales revenue peaked in 2Q18 but OTC cash receipts didn’t peak until the following quarter. The implication is that the current 1Q19 quarter should see an extra $592K spill over as cash from 4Q18 sales. Nonetheless this unusually low figure I think should have attracted comment in the notes accompanying the 4C.




With a cash burn of $1.7M, cash in the bank fell to $1.6M by the end of June, a level that in the past has activated a capital raise. This of course has already occurred, and cash held now is well off the chart. Hopefully soon to be put to good use.



The unusually low 4Q18 figure for cash receipts has lowered their average trend growth rate slightly to 12.1% per quarter (58% annualised). As a consequence the projected timing for cash neutrality moves from the first half to the second half of CY2019. This estimate is a little more conservative than the stated expectation that profitability is likely to be reached within the current financial year.



With the expanded product distributions projected, some serious increases in both cash receipts and sales revenues can be expected to appear on the charts over the next few quarters.