Where is Fair Value?, page-59

At the end of the last quarter, 1ST had $4.45m cash in hand, in addition to ~$0.5M from the Plummer credit facility. That is a total of ~$5M in cash reserves.

For Q3-FY20, total estimated cash outflows are estimated at $2.3M. I expect to see at least $1.3M in revenue, so we can expect a maximum cash burn in Q3-FY20 of ~$1M.

This rate of cash burn should continue to decrease as the year progresses with increased revenue and cost control. Even using very conservative estimates, 1ST has enough cash to last the next 12-18 months.

The Plummer credit facility terms and conditions are extremely favourable and supportive for 1ST. If this needs to extended and expanded, then it will be. Again, I'd encouraged you to chat with Klaus/Plummer.

Fortunately, 1ST is better off than most microcaps given the capital raise late last year, with a cash runway that will last the next 12 months minimum.

At a market cap of less than $10M, 1ST trades on less than 2x ARR. To get back to $30M MC, that is a 3x bagger... not a bad risk/reward play if you think we will return to a $30M market cap in the next 12 months.