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Ann: June Quarterly Report and App 4C, page-79

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cashken

2,625 Posts.

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01/08/17

09:22

Post #: 26205639
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Originally posted by mxsone ↑

Growth is way too slow IMHO. The quarterly clearly states that in Q2 $125,000 (approx) in recurring annualised SAAS revenue was added. Not in the month of June, in an entire quarter. Said another way: the company will earn $12,200 (approx) extra per month in the coming year in SAAS revenue due to new signing in Q2.

Why do I think this is 'slow'? Compare it to the burn rate. Revenue (unaudited) was 461K for the quarter and receipts were 457K. Total cash lost on the quarter was 1,123K. 3,250K is left at the end of the quarter. Assuming relatively constant receipts for the subsequent two quarters (which, based on the past two quarters and solid evidence available, is fair), approximately 2,000K will be lost and 1,250K will be left in the kitty.

If at that point the company doesn't have 1. SAAS growth far more impressive than it's current rate (which I'm not saying is impossible, but think there is inadequate evidence for at this stage) 2. A horizon for profitability (even if that's 5 years down the track) then cash-raising discussions will start. If a cap raise is opted for, discounted share prices will probably be offered.

Further, the quarterlies don't discuss the Dash Digital business. Even though it is a significant revenue earner for this company, investors are very much in the dark regarding it's running during the quarter. That's terrible.

Additionally, I got so sick of Velpic messing around with the metrics Velpic have used to portray growth in their ASX releases over the past year. Basically, you can be sure the most impressive metric will be used to convey information to shareholders. That's disgusting.

You can probably tell from the above I sold recently, at market open yesterday actually.

Why did I write this post? (way longer than intended by the way). Seems there's a few people struggling with comprehending the financials, and I'm really not a fan of the way Velpic has treated it's shareholders (you / possibly you).

As always, GLTAH, maybe Velpic will make some big signings in the coming months. Look after your money fam.

- MS

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Well, the company had record recurring revenue in June AND record amount of monthly users/lessons as well. That's not bad news by any stretch.

Cash on hand of 3.25 million.

Upside galore this month and the next with a settled sales team both in the US and the eastern seaboard.

Personally, I think many of the negative comments on VPC are an attempt by those to rebuy at lower levels. Frankly, they have decent cash on hand and are poised for much stronger growth with this new strategy.

Congrats to those who traded out at .022 and .021 and are afforded the opportunity to re enter at .018 today.

VPC Price at posting: 1.8¢ Sentiment: Buy Disclosure: Held
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