The question of whether they should making more announcements on new contract wins crossed my mind as well. After reading the list of new orders, I concluded they are sticking to the $3m threshold having seen that the bulk of their new orders are below the $3m contract value. What irked me also was they cited a doubling of new orders in their pipeline since Dec 31, 2022. But the trouble is, they are LOI and LOA (Letter of Intent, Letter of Acceptance respectfully). They cannot recognise these orders until a down payment is received. That's the frustrating part of investing in FLC.
While I am at it, I asked why are lowering guidance lower guidance for FY2023 when the order books are increasing. Their answer, timing differences. Need one year from securing contract to delivery in order to recognize revenue. Also, I asked whether they need a CR given EBITDA OF $2.5m may not cover interest cost of $30m loan draw down. They said, no, They have sufficient cash.
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