I am just looking at App 4C Item 9 Estimated cash outflows for the next quarter:
Column 1
Column 2
0
R&D Expenditure
$450
1
Product manufacturing & operating costs
$45
2
Advertising & Marketing
$50
3
Staff costs
$140
4
Administration & Corporate costs
$110
5
6
Total Quarterly Costs
$795
7
8
Monthly Costs
$265
So the target as I saw it is to be monthly cashflow neutral by the end of the financial year which does not mean that the quarter will be cashflow neutral. Therefore by June they need to have revenue of $265 for the month.
However, the R&D Expenditure is entitled to an R&D Tax Incentive of 43.5% which is $195 for the quarter or $65 for the month, assuming even expenditure.
I would have thought that the target was cashflow neutral meaning $265k of revenue in June. However given that you will get the $65k back for June R&D payments later this year the revenue only needs to be about $200k to be neutral.
This is a tripling of the revenue for the March Quarter but Promarker D was only launched in March so these should be the first full months of royalty revenue associated with it.
Will see how they mark their report card after the quarter.
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