Ann: Appendix 4C - Quarterly Report with commentary, page-49

C’mon peeps. Let’s think this through. The communication from the company has been selective at best but it’s not that hard to see why the LIFX sales and receipts were low.

We all know the company was desperately short of cash in mid 2019 and by the time the cash came in it was too late to fund the purchase of stock for Xmas, so sales are off and orders were rejected. Yeah that sucks but writing was in the wall. Upshot is there’s demand for the product and currently the business has facilities in place that will hopefully prevent a similar situation occurring in 2020.

the reason many bought BUD in the first place, OHM and the platform services are actually gaining traction which is hilarious. It’s finally gaining traction and no one gives a sh$t any more! Oh the irony.

yes the cash balance is only $3m but there’s a pretty big accounts receivable so there’s a reasonable chance that cashflow in the current quarter might be okay (no guarantees though, it’s BUD after all). The June quarter might be a stinker for cashflow but then again if the business has the capacity to fund inventory this year and consolidate its retail channels and get product to store then it could be pretty good. Note the much of the new facilities to fund inventory are largely indrawn at this point.

delaying the larger debt repayment of about $10m is of course pretty important so watch this space.

in some respects I’m glad that they didn’t achieve the 70-100% growth... that kind of growth looks good on paper but is a huge drain on working capital so in some ways it’s a bullet dodged. Downside is that BUD is still short of cash at lower turnover. Oh well, grind higher and tighten costs.

oh so what’s my summary? LIFX seems to be a great product and 2 out of three ain’t bad???

lets find out Monday. I have no idea which way the SP will go.