OK, below are my thoughts on today's news. When all is said & done, W2V should have around $6M in the bank.
Last year they blew around AUD$6.3M, which was less than the previous years. So, there's a clear trend of increased revenues with cash burn falling.
But remember, this just pulled in $500K at the start of January & hopefully more over the next month, to the end of March, to finish off the quarter.
GTV & revenues have been increasing YoY, so I don't see why 2024 would be any different. That should mean more cash receipts for 2025 as there's usually a 6-12 month delay for payments. If W2V processes a transaction today, they won't receive their commission until the end of 2024 or early 2025.
There's still a backlog of $3.57M cash sitting in government coffers waiting to be transferred back to W2V so they can take their commission.
A new product line to generate more revenue from the existing client base.
If we add everything together below.
GTV has been increasing. Revenues have been increasing. Cash receipts should increase. (Already banked $500K this current quarter alone) COH should be around $6M shortly. Backlog of cash sitting in government coffers. When that gets returned, W2V makes their commission. New revenue streams for AI-AP compliance product. Cash burn is falling when compared between 2022 & 2023.
So, if W2V burnt through $6.3M last year, they have around $6M within months after this CR, plus cash burn is falling, I'm theorising that W2V has enough cash for the rest of 2024. Remember, between now & the end of 2024 cash receipts from clients should also increase, like they have been over the last few years.
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