First take: 1. Looks like accrual basis sales momentum is there but we have been told for a while now negative cash flow is for payment of costs to fulfil orders - looks like this may now be somewhat at an end and Certus is going to start shipping but still not great to see the cash burn. A wise man once told me if you have more money going out than coming in your f*&%*@#. This need to drastically change and fast. 2. I thought R & D was to reduce by now but seems to be going as strongg as ever. A concern if we need to keep going back to this and spenidng $3-4 million a year here. Not saying it is a bad use of funds but just that hard to stay relevent as a small cap if we have to spend million on R & D then aren't recovering it on the other side as margins may not be there. 3. R & D Grant perhaps coming in the next quarter? Was in the Sep 2021 4C I note. 4. $3 million of prepayments will convert to cash in the coming quarters, not quarter, but is this going to generate $3 million of sales or $6 million? 5. The reality must be we are selling Zoleo's at the same price as 12-24 months ago but the cost to manufacture has probalbly gone up 50-100% even? This must be hurting us? 6. It says we have started shipping Certus in the previous quarter but there has been no release on this or a product release and nothing can be found online? Looks like Irridium have gagged us here as well?
Good that guidance raffirmed, sales growing. Zoleo ANZ slightly concerning as whilst it is meant to be a slower quarter could be the market tops out at 10,000 here for example? No mention of Certus sub deal but perhaps not an item for the 4C?
More questions than answers here unfortunately. Tomorrow should be interesting.
BCC Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
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