Hi all,
Below is a snapshot of XPE, as well as a comparison to a few of the local junior tech companies (not competitors) that XPE has been compared to in recent times.
View attachment 164595
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There are a few points worth noting from the above table;
1.. XPE has the equal lowest Enterprise Value (approx. equal to NOR) of the 4 companies, based on their current SP.
2. XPE has the lowest cash burn rate out of the 4 companies that I've listed.
3. XPE has by far and above the biggest cash pile out of those 4 companies.
4. Based on the current and future cash burn rate, XPE is the only one of the above companies that won't require either equity or debt funding this year or next. In fact XPE has forecasted that based on projected business activities, it has sufficient working capital until 2019.
Approx. $8.8m in outgoings (i.e. after offer and acquisition costs outlined in the prospectus which I've already deducted from the est. cash on hand figure in the table) is forecasted for the next 2 years. Assuming total expenditure in 2018 is similar to that of 2017 ($4.38m), the company should have sufficient funds to see it through until early 2019 (following the conversion of options in 2016).
Importantly this forecast
does not take into account any revenue being realised between now and then. However given the multiple alliances already announced, we should expect to see first revenue being generated by mid year.
note: my definition of first revenue excludes past and ongoing sales of ADRC kits to enthusiasts etc.
Therefore it is entirely possible (and many would argue probable) that the company will be able to flourish and expand without any significant equity or debt funding in the future (excluding any larger scale acquisitions that may arise and the company might wish to pursue).
Furthermore the most recent MOU with the unnamed US listed Tech Giant highlights not only the interest in ADRC on a global and grand scale but the apparent ability of management to negotiate capital funding in partnership with a multi billion $ corporation to further develop business and marketing opportunities for XPED's ready to go tech. To have an MOU on the table in such a short space of time with a tech giant (or two) is testament to the company's main asset (its people) and something that most other junior tech. companies can only dream about.
5. Notes on NOR.
NOR is currently generating revenue at an annualised rate of $2mil. Although they expect this to increase due to their recent Global Dynamic Pricing initiative, their business model is proving to be more capital intensive than many had envisioned (NOR generated almost $10mil in losses last half and are burning through cash as they race to develop/enhancing their key products to customer satisfaction. Based on their current cash burn rate, I expect that NOR will require further equity or debt funding by mid year.
6. Notes on BRN.
BRN's technology (as promising as it is) is still some way from being commercially ready. The company is also low on cash and therefore equity or debt funding is likely be required in the very near term.
7. Notes on RAP.
RAP's technology is still at trial stage and won't be ready to bring to market until end of 2016. Therefore it is unlikely that any revenue will be generated until 2017 at the earliest.
GLTA and please note that the above is my opinion only and should not be relied upon nor considered as advice of any kind.
Please DYOR