Decided I wanted to analyse the numbers a little further. Refer to the below:
The trend for the Admin, Staff and Advertising is looking positive. That is as sales have increased, they have not gone up in proportion. You would have no idea in how many small caps that I analyse that this is not the case! I will admit that R&D expenditure to me is an issue. I would have thought there would have been constant R&D qtr by qtr. I will query this with Ryan offline in his own time.
So it seems obvious that the burden is the Prod and Manufacturing. But, as stated in the latest qtrly in the commentary, much of this is now sitting in inventory, so this is why this upcoming quarter is imperative. Will this expense line now dramatically decrease while receipts potentially stabilise after the killer xmas qrtr? Or have they been continually manufacturing in order to stock shelves in the newly announced countries that RBO will be selling to? Expected outflows are 2950 (big drop from previous qrtr) with 1500 of this being related to prod & manf. But this is indicative and will vary depending on new countries/deals being signed up.
Revenue was the half was 4.3mil, yet we can only see just on 3mil in receipts for the 6 months.... could be a big inflow of cash and a reduction in expenses... do I think we will be CF+, i doubt it (especially since they stated they are still looking at non dilutive forms of raising cash), but hey this business I reckon is a WHOLE lot closer to CF+ than sooooo many other small caps out there.
@ryanl can you please confirm under what area of the 4c the 250k (100+150) relating to litigation and urgent courier expenses was sitting under?
Would like to hear some thoughts from others in regards to the above.
RBO Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
