Positive cashflow will be used to launch into international markets. SP is like a yo-yo & could do anything regardless of being cashflow positive as it depends more on market conditions.
Going back a year the cash burn dollar amount was increasing but the ratio of cash burn divided by revenue has been reducing. For example, in Q2 FY21 cash burn was $1.372M excl. investing with revenue of $712k = x1.92 cash burn ratio.
Q2 FY22 cash burn was $3.6M excl. investing with revenue of $5.4M = 0.67 so reduced by about factor of x3 in 12 months.
Q3 FY22 cash burn of $3M excl. investing with revenue of $4.6M = 0.65 so again down slightly during worst quarter of the year.
Revenue has grown significantly YOY & cash burn ratio has decreased by a factor of x3 YOY. All during lockdowns, floods & bushfires.
The business is forging ahead to being cashflow positive in 12 months.
DW8 Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
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