Did anyone notice that they paid down their legacy payables in cash? This is a bit of a first as we have been used to a constant issuance of 3Bs and payment in scrip. Is this a signal that the company has finally matured and wants to put behind it as much of the dilution as possible? Not saying we wont see another 3B if there is a compelling settlement of legacy option, but i suspect that the cash flows in Q4 combined with the availability of debt meaning that not every cent of cash in the bank needs to be preserved, means that the company will now start operating in a more conventional way. Good to see the current liabilities are being paid down further and i suspect we wont be that far off having balanced net current assets. This will be a key for re-negotiating an even more attractive debt financing arrangement.
It would have been nice to see the ad classification problem sorted out earlier in the month so that the largest publisher could have contributed to September figures. But i suspect given that we generated $400K revenue in the first 4-6 days of the month means that they are now back online and we should start to see some decent revenue growth.
Its worth noting that without the payment of legacy debt in cash and the pre-payments, we would have been significantly cash flow positive for the quarter which is very promising.
EN1 Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
