Ann: Commentary on Preliminary Financial Report - FY2020, page-26

DSE is an exceptionally easy company to model, their costs are relatively stable and so is their growth rate. They have a very simple balance sheet as well, so building a basic operations cash flow model based on historical 4C data and extrapolating forward is very easy and reliable (See below).

Based on this projection I see a fair value of DSE at $0.27 based on 11x DEC ARR of $14,000,000

There is no reason for DSE to raise additional working capital, any CR in the future would be strategic in nature. As you can see below the company should be relatively cash burn neutral in June and cash flow positive thereafter. The stock is cheap, operationaly being run very well, maybe a little conservatively if you wanted to be critical, growing exceptionally fast and very under-owned by either retail or Aussie Insto. I expect continued strong growth and multiple expansion as insto's are forced in over the coming 12 months

March
Receipts +2,115k
Net Cash used in operations -383k (includes provision for the annual costs due this qtr)
Cash Balance +2,099

June
Receipts +2,400k
Net Cash used in operations -15k
Cash Balance +2,084

September
Receipts +2,723
Net Cash from operations +176k
Cash Balance +2,259

December
Receipts +3,089k
Net Cash from operations +392k
Cash Balance +2,651