Ann: EXL Presenting at Australian Micro & Small Cap Conference, page-11

@PC3Orion


And this was the one from around 20.07.20 that made me decide against investing, particularly the note about auditor changes




Here’s the thing, mate: quarterly is due tomorrow. We’ll see how much cash is left. After the last raise, they had $20 million, including that fresh $11 million they just raised. And they showed a $9 million per quarter burn rate and $2.5 million of revenues.

So tomorrow morning, we’ll see what’s left. What you should be concerned about is : will they even have enough money to make it to February 2021 when the TGA (might, not guaranteed) make this change?

If the burned $9m and do say, $3m of revenue again, that will leave $14m? You may wish they reduce that burn drastically, but they’ve already furloughed 70% of their prior workforce...

This is about math now. Not my feelings or yours.

Would the market really accept yet another CR and the dilution that engenders at these prices?

The announcement this morning about changing auditors is an ominous sign, particularly the day before numbers are released: it tells me that Deloitte was most likely not willing to sign off on an “on going concern” statement.

So they found a new auditor (that nobody has ever heard of) who agreed to sign off in exchange for the new business...

No company in good shape switches from a name brand Big 4 auditor to an unknown store brand, unless there is something nefarious to hide.

Be careful. Tomorrow is a make or break report for EXL, and macro conditions worldwide do not bode well for some kind of pleasant upside surprise. Are you ready to take a 30% dilution hit so they can raise another $10 million to survive 1 more lousy quarter?

They are living hand to mouth now. This is numbers and math. Not my opinion.