Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-97

It looks like Spenda had to make a tough call mate. They chose to focus their resources on meeting Capricorn’s commercial needs and continuing product development for Carpet Court, which meant putting the AgriChain early settlement program on hold. Even though that wasn’t an easy decision, it fits with their main goals of getting to a cash flow positive position and building a solid base for long-term growth. They’re making progress on the growth front, but still have some way to go in reaching that cash flow milestone.

Re-signing the agreement with Capricorn wasn’t a simple task either by the sounds. It involved a thorough audit by an independent firm and a global search to find the best tech partner for Capricorn’s future plans. It took over a year to get through this whole process, but it paid off with Spenda securing their spot as Capricorn’s tech partner and landing a $7.2 million cornerstone investment. What this also does is validate the tech we are inverted into.

In terms of cash flow positive and when Spenda will hit this milestone, at the moment, it looks like Spenda could become cash flow positive within the next 12 to 18 months. But we also need to be realistic around these predictions as this depends on a few key things going according to plan. They’ve been showing solid revenue growth, with cash receipts up by 157% compared to last year. This is thanks to moves like acquiring Limepay, which should boost their payment volume, and the upcoming launch of SwiftStatement, which is expected to bring in up to $18 million in yearly revenue by late 2025. If these projects roll out smoothly and start pulling in the revenue they’re aiming for, things could improve quite a bit.

In saying this, Spenda’s costs have also been going up, especially with staff and product manufacturing expenses, which isn’t unusual for a growing company. The challenge is going to be keeping these costs in check while continuing to grow revenue. They still have about $6.5 million in cash reserves, which gives them some breathing room, but it’s crucial that they start seeing returns from these new projects soon to avoid running through their cash.

If they can maintain this revenue growth and avoid unexpected costs, there’s a good chance they could break even by late 2025 or early 2026 in my view. It really comes down to how well they execute on their current strategy and how quickly these new initiatives start generating steady income.

I trust this provides some clarity on my perspective regarding the delay in the AgriChain program and the timeline for achieving cash flow positivity.