Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-58

Thanks.

Typically, when a company is burning cash and attempting to extend their runway, they highlight and explain all positive actions taken to reduce costs. For over a year, corporate costs have been hovering around $2.5m, but now slashed to $286k. Are these real savings, is it even feasible to reduce costs this much and this quick for a 700+ person multi-country company, or have they simply accounted for these costs in a different way? i.e. corporate + product/operations costs have been stable at circa $3m for the past 5 quarters. If they had a positive story to tell, i'd expect them to tell it (just look at the positive spin they've tried to put on receipts!).

They've definitely reduced investing spend, but your chart shows how unsustainably high the operating burn has been over the past few quarters. Over $3m for June might be an improvement on March, but it remains the second highest quarterly operating burn over the past two years! Reducing such costs typically takes around a year. The onus is on increasing revenue.

I'd expect LSS/ICI to have almost perfect visibility of WFH revenue over the remainder of the year; it is not as if a project is agreed one week and the team commences work the following week. This is why similar companies, such as PLY, are able to provide guidance and provide IP progress updates.

It's important that they launch Engineers on schedule just to demonstrate that they can deliver something and learn from the experience. I'm still not clear whether the NFTs will offer any unique utilities and will a successful mint even cover one quarter of operating losses? It'll provide a one-off boost to revenue, but if the NFT prices drop post-launch (95% of NFTs do), then ICI will be saddled with expenses for the next 2 years +, which the royalties won't be able to cover. The easy money days are long gone.

I'm not sure about August stats, but there's few positives about NFT market trends:
https://www.coindesk.com/web3/2023/08/03/july-was-a-terrible-no-good-very-bad-month-for-nfts-dappradar-report-shows/

The big unknown is whether they remain on-track to deliver some games this year. The on-going silence from the company doesn't instil much confidence.