On Track to Profitability, Price Target Increased (MST), page-42

Hi Tony, sorry for the bluntness but who are you to say how the management of this company must be feeling? They’ve just released the best set of figures in their history, very strong growth and a clear improvement in profit. It is far more likely they are still popping open champagne bottles celebrating than sweating about the share price.

Looking at the stocks you mentioned you might be used to pre-revenue and loss-making companies that require very large cash buffers due to the high uncertainty of their future cash flows, Nova Eye Medical is not at all in the same position, not anymore at least after four halves of consecutive strong growth and the increased certainty around future reimbursement. You can’t compare this to those stocks.

As visibility of future cash flows becomes clearer, the required cash buffer shrinks. They most certainly could reduce their cash balance well below the $3m that has been predicted by analysts for 2025, to even $1m, so long as there is clear enough visibility that they’d be generating cash in the next period. It’s about the visibility, as that improves the cash required to be kept on hand reduces. The minimum amount of cash required when iTrack Advance was first launched is much different to he minimum amount of cash required today, and especially compared to the minimum required for companies that aren’t event making money yet.

None of us can predict if or when a raise may happen, but one thing is for certain and that is that they will not raise for no reason, especially not at a low price. Raising for no reason would include raising despite having several million in the bank and predicting cash flow positive with a strong degree of certainty well before the cash runs out.