In response as to why their will be CR this year (more towards August than June, but around there).
An analysis of the cash burn and the working capital cycle (they collect slower than they pay) will tell you that they will have less than 2qtrs of cash by last qtr of CY2022.
But you don't have to go there, you don't have to calculate or extrapolate you just need to look at what the company and its auditors have actually said.
1. What the company said (Microcaps Investor Presentation) You don't say Calendar year 2023, if you can say FY2024 which you could say if your cash runway extended past 30 June 2024. So they are running out of cash based on everything Management Know and think they can achieve, in the first half of 2023.
Now i know some here want to make up stories about how they could sell imaginary warehouses and how the performance is going to take off etc etc, but that's wishful thinking versus what the company's own management actually know and believe.
You can do stuff all in Australia in capital markets in Dec 2022/January 2023, and if it was a matter of a couple of months, you could pretty much juggle a few things to push the cash zero date past 30 June 2022, and you would be able to say you have enough cash to FY2024. So best interpretation is cash zero is first quarter 2023.
No board worth its salt is going to wait until has less than a qtr of cash left, let alone the ASX requirements around expanded explanations below 2qtrs cash. So that puts you in the June to Dec 2022 CR window.
Some come August you have around 2qtrs cash left based on company's management view, full year results etc come out in August directors need to sign off on solvency etc, so this is the most logical time to do a capital raising. Management will be hoping/planning produce enough good metrics in their full years to support a CR.
How much will they raise if they can half the cash burn then they will be in the market for $8 to $10m.
So CR third qtr (July-Sept) this year looking for $8 to $10m.
2. The auditors The auditors, included a material uncertainty related to going concern note, in their half year ended 31 Dec 2022. You get one of these if your auditors based on what management forecasts show (and off course its in managements interest to put their best foot forward to avoid one of these), and the auditors view is that as at the 28th Feb 2022 the company has less than 12 months cash burn left.
Not that you need it but further support that there will need t be a CR most likely the 2nd qtr (July - Sept 22) based on DW8 management's forecasts.
(20min delay)