The last quarterly did not show the company is cashflow positive. One of the problems here is the bullshit metrics this company promotes. "Stand still EBITDA" "Stand still Operating Cashflow" which is simply EBITDA and Cashflow minus some costs we don't want to include to make it look better. The company categorized 700k of business improvements as Investing activities, which of course they are entitled to do, the 178k of financing costs won't be repeated. But the reality is the company bled a little over 700k in the best quarter they've ever had. So they need a huge improvement to get to the point where we can definitively rule out another capital raise and truly be self-sustaining,
The all in annual cost base is about $10 - $11m and if management are to be believed this will stay the same in FY24. That implies they need to generate 1m trips @$10 or 1.1m @$9 1.25 mill @$8, you get the gist. July was a good start but they need to keep that momentum going.
JAY Price at posting:
11.0¢ Sentiment: None Disclosure: Held
