DRO 0.00% 85.0¢ droneshield limited

Covid-19 and DRO, page-9

  1. 439 Posts.
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    I have taken a positive approach but am worried that the two announcements below seem to muddle the spending announcements less than one week apart.

    Inventory was mentioned on the 06/08 in items 1,2 & 4, this equates to $1,000,000. (This seems low if orders are pending)
    R&D Expenditure
    was not specifically mentioned but is possibly item 3, this equates to $3,500,000 (This seems high considering the development of product already in the market)
    Sales, Marketing & Engineering is $3,800,000 but what part is inventory and what part is R&D????? (This seems high comparative to inventory and "rapidly scaling the team" is a massive wage bill)

    I would expect a better alignment with budgets specific to expenditure, so it is starting to look like smoke and mirrors.

    A clearer picture is required in my opinion.

    6 August 2020 ASX RELEASE
    Placement and Share Purchase Plan

    Use of Funds
    Net proceeds raised from the Placement and SPP are intended to be used to fund:

    1• Rapidly scaling the sales and marketing resourcing (team and inventory) to support current
    momentum in the US, Europe and other locations as they emerge from COVID-19 slowdown
    2• Additional resourcing (including inventory) to support airport trials
    3• Scaling up of the Australian engineering team to support rapid refinement of products in response
    to end user feedback
    4• Investment in long lead items for sale inventory to enable rapid sales and demonstrations
    5• Repayment of the $600,000 R&D Tax Incentive Loan (so DroneShield receives the full amount of
    thr 2020 R&D Tax Incentive due in first half of 2021)
    6• General working capital.
    ........................................................................................................................
    11 August 2020 ASX RELEASE
    Share Purchase Plan-Offer Letter


    Source of funds and amount
    Placement $7,500,000
    SPP $1,500,000
    Total $9,000,000

    Use of funds Amount
    Sales, Marketing and Engineering teams $3,800,000
    R&D Expenditure $3,500,000
    Inventory $1,000,000
    [Repayment of R&D Facility Loan] $600,000
    Expenses of the SPP and Placement $600,000
    Total Use of Funds $9,500,000
    ...........................................................................................................................


    Maybe none of this matters but the negativity on HC has certainly made me think.
    Like everyone is saying............sales are necessary, needed urgently and they need to be significant.
    Anything or nothing from here over the next few weeks will determine my strength to hang in, it is waning.


 
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