I actually spoke to Paul or Nick about it weeks ago when talking about the reduced spend and base case.. I think they were pretty happy about it, considering they made the point of the better than expected R&D. For memory they had budgeted for approx $700,000 and it's actually more than $1.2m
Just found it in the Annual report.
"To provide financial security the Company completed a $3.5 million capital raising prior to 30 June 2016 which ensures Norwood is fully funded for FY17. The Company’s capital requirements will be significantly lower than FY16 due to the prioritisation on business sales (Corona) rather than direct consumer (World Phone). Norwood’s “base case” expenditure scenarios for FY17 which will see the Company’s operating plans, including R&D and corporate sales efforts fully funded for FY17 assuming a forecast quarterly burn rate of less than $1.2 million per quarter. The Group has forecasted to receive an R&D tax credit refund of an estimated $1.26 million prior to the financial year ended 30 June 2017, up from an earlier estimate of at least $700,000."
So long as they are meeting the projected 1.2 spend, they are in a great position.. I'm assuming they are getting plenty of smaller contracts already (thinking they're only announcing the 200k+ jobs (hopefully we start seeing those very soon))..
Along with the extra $560000 R&D, and some expected deals...
The CR choir will be silent on the Nor threads.. AT LEAST until the end of FY.
NOR Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
