AFR changing tack?, page-18

Putting emotion aside, here's the rough maths based on the Half Year Accounts for FY22:
1. From the Profit and Loss Statement: COGS + S&D costs + Expensed R&D costs + G&A costs + Capitalised R&D = $110M. Annualised this is $220M
2. From the Cashflow Statement: Payments to employees and suppliers + Capitalised R&D = $88M. Annualised this is $176M
3. Last year's statutory revenue was $176M - not all of that is paid up front (ie. Multi Year Deals which seem to be increasing as a % of revenue) so from a cashflow perspective cash inflows are worse than this
4. Receipts from customers in 1H2022 was $80M. Annualised this is $160M but it will be worse than this as revenue skews to the first half (ie. 55%) as per the prospectus. If that remains the ratio for FY22, then we could expect revenue to be as low as $145M

So lets be generous and Nuix comes out with $155M for the full year. At a cashflow level they could be losing at least $21M based on (2) above. In the worse case, they could be losing up to $65M based on (1). This excludes costs associated with any class action claims, fines or settlements with the former CEO.

As of 31 December 2021, Nuix only had $52.5M on the balance sheet. You don't need to be Einstein to work out that Nuix will run out of money (within 12 months if any of the myriad of legal action goes against them).

It makes a mockery of the current CEO's claim that everything is hunky dory and investors should just draw a line in the sand and move on.

I also wonder whether Nuix will also be face a significant write down on the value of its software, currently sitting on its balance sheet at a carrying value of $228M. Its market cap as of yesterday was $250M.

This is a total disaster and one wonders where the hell the ASX and ASIC are. Investors continue to be misled.