Ann: Half Yearly Report and Accounts, page-17

Agree that it is tough to find too many positives in this report – as clearly this business needs to further ramp up its revenues & cash receipts ASAP to be the success that we all want it to be.

So it now probably comes down to how much you trust that the second half for Pointerra will be significantly improved on the first half - as mentioned a few times by management in the past 2 reports (4C & half yearly).

As per my previous posts, I was expecting revenue of around $5m for this half (actual revenue was $3.82m), and based on that revenue figure I was expecting a loss of around the same as the last half year ($2.376m – versus actual loss of $3.17m which included the $900k in non-recurring costs).

With regards to some of the other areas mentioned today by other 3DP shareholders / posters:

REALLY HIGH ADMIN COSTS – As the gross profit margin was still excellent at over 92% in this half year report, I think you will find that these really high admin costs for the half (total of $4.19m) included the $900,000 in non-recurring AWS platform costs that was mentioned (see details in bold below from the half year report):

External operating costs during the half included some $0.9 million in non-recurring items relating to platform R&D costs with AWS and the use of 3rd party contractors for a now completed project.

CAPITAL RAISE – With regards to a potential capital raise, obviously cash in bank has gotten tighter over the past 6 months (as the cashflow report showed an outflow of $977k for this half).

3DP had around $2.75m in the bank at 31 December 2023, and the below statement from the half year report (in bold) seemed to indicate that they weren’t expecting a capital raise in the next 12 months.

The Directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. This position is supported by ongoing customer subscription renewals plus the pipeline of delayed programs and pending contract awards.

There is no doubt that I found this report disappointing, but as a decent sized shareholder I am also trying to keep it in perspective.

With a gross margin over 90%, the 3DP business clearly really needs to crank up its revenues & cash receipts as soon as possible – and I am hoping that the announced large contracts with companies like Amazon / Velociti & FPL / NextEra & Entergy etc (plus all the smaller existing contracts) will get us there soon.

And obviously any new & decent sized contracts would be very much welcomed by all shareholders.