Ann: Investor Presentation September 2020, page-35

Furthermore, the company did not make a loss from operations in 2020FY.

Straight from the 2020 results announcement:

"Of note within the Company’s first financial results performance after going through a significant start-up phase, the Company was able to generate net cash from operating activities of $1.99 million."

Considering the acquisition was only completed in September, turning a $2m profit from operations in 9 months is an exceptional result. How many companies on the ASX spend years chasing to be cashflow positive? Vysarn were cashflow positive from November (as per announcement in Feb 2020), a mere 3 months from start up.

Also note that previous announcements they have been very conservative on projected earnings. For now, they have only added a footnote stating "management also anticipate that a material outperformance of this EBITDA (6.03m) benchmark is possible if several earmarked multi-rig, multi-year contracts are won leading into the June half of FY2021."

But as for my previous posts, while the share price is currently supportive of current operations, the value in Vysarn is in their growth story.