Ann: Quarterly Activities and Cashflow Report-XPE.AX, page-47

Wow! Have people read the quarterly? First thing I do is skip and go straight to the cashflow - everything you 'want' to hear by management will always be padded before that.

Guess it answers our questions - from 5 mins scanning through:

a) indeed JCT appears to be an annualized $1m revenue.

So $1.5m more revenue and the cash bonuses are paid out - not much of a stretch target. JCT guy has bonuses/performance from memory from hitting $2m?

I can deal with JCT getting bonuses but if the $2.5m revenue target is hit why are Martin and Athan getting 30% bonuses worth nearly $300k AUD? Bells ringing.

b) That admin/staff costs!!

c) R & D costs - mainly as someone in the other thread when I was mentioning costs said R &D  was all done, no further costs, costs to produce would be outsourced etc.

This just goes to show there are still going to be 'costs' there, they aren't going to incur $0 costs besides staff and outsource everything and roll in the cash.


d) strip away the options, and this burnt through a lot of cash.

e) To build on what I said in c above - next quarter's estimates:

Research and development 300 000​

9.2 Product manufacturing and operating costs 400, 000

There are definitely costs for continual R & D, product manufacturing etc. Even marketing costs have $20k allocated.

Then the big ones:

Staff costs 300​

Administration and corporate costs 1,480


So what they classify as staff costs vs admin and corporate costs I have no idea. I am assuming salaries, signing bonuses etc falls under the latter, and staff costs are the perks of travel and accommodation etc.

$1.8million next quarter. This highlights the points I was making on the performance bonuses - it doesn't matter what Martin was getting paid - $9m, $15m, or $300,000 in the old job, or that we may be the next rockstar billion dollar revenue company - the current financial position of the company is fledgling start up, but the costs and spending certainly don't match that attitude.

Big flashing signs to me.

As someone said this might be the next best thing since bread, but the market is probabilities and while you may miss that one golden ticket, in general taking heed of warning signs is bound to save you from numerous other disasters - hopefully XPE isn't one of them.

Now to go back and read the quarterly pre-cashflow statement....