Clearly not the desired result considering the share price plunge, message to self, stop buying shares in companies thinking that they will go cash flow positive soon and hence are an underrated stock. My observation is that they are still growing but looking at the SP they have lost the confidence of investors. Note from 4C 8.1 Net cash from / (used in) operating activities (item 1.9) (2,254) 8.2 Cash and cash equivalents at quarter end (item 4.6) 13,141 8.3 Unused finance facilities available at quarter end (item 7.5) 4,000 8.4 Total available funding (item 8.2 + item 8.3) 17,141 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 8 I have to ask myself then , can they increase cash per quarter by 2.254 Mil ?, I think that with the current trajectory this is possible but looking at the chart in the report it shows there have been prior poor quarters followed by improvements so the jury is out on that one. Note from 4C LiveTiles Q4 FY22 cash receipts of $12.9M declined -11% compared to pcp (Jun-21). With approx. $1.7m in lower than expected customer receipts due by 30 June that were delayed and not received in time. At the date of this announcement, 60% of these Q4 expected collections have since been received. Trailing-twelve-month (TTM) cash receipts of $56.7M has grown +10% compared to pcp.
Next question, how long will it take to become profitable? I do not have an answer to that question. The 4C, 8.5 says that they have 2 years of runway with current funds to achieve the desired outcome.
Conclusion Can i hold my breath that long? What was an extreme high risk proposition has remained so.
LVT Price at posting:
6.0¢ Sentiment: Sell Disclosure: Held