I am not so sure wombat.They have blown circa $65 million on...

I am not so sure wombat.

They have blown circa $65 million on their CY2022 sales pipeline as per the July Investor Presentation. Please explain DRO.

Whilst cashflow is indeed better - they are still struggling on the sales front, barely acheiving $500k per month in general non-disclosed revenue.

And expenses are rising.

I am still very positive on the future of DRO - however, management needs to seriously look at the way it sets and achieves targets and why it is failing to convert the sales pipeline to revenue.

SK.

	DRO Analysis		As at:	13/10/2022
1
2	CY 2022
3	30/6/2022	Half year customer revenue	$5,223,000		Including payments in advance
4		Less receipts relating to 2021	-$200,000
5	30/9/2022	3rd QTR customer revenue	$3,626,000
6	30/9/2022	3rd QTR Grants & Incentives (non-customer)	$2,016,000
7	1/9/2022	Record European Order	$500,000		Assume 75% received 3rd QTR
8	4/10/2022	US Department of Defence	$1,800,000		Expected receipt prior to 31 December 2022
9				$12,965,000
10		Adjustments
11	31/12/2022	Australian Department of Defence	$300,000		$3.8M contract to be completed mid-2023
12		Assuming $1.8 still payable between Jan 2022 & Jun 2023
13	31/10/2022	Defence Innovation Hub	$133,500		$800k spread over 12 months
14		Take-up approximate allocation to 3rd QTR 2022
15	31/12/2022	Take-up non-disclosed revenue at $500k per month	$1,500,000		3 month general revenue
16		Total adjustments		$1,933,500
17
18		Total revenue forecast 2022		$14,898,500
19		Change since last forecast		-1.92%	Slight revenue decrease
20
21	CY 2021
22		Full year sales and other revenue		$10,812,000
23
24	Rev growth 2022			37.80%
25
26
27	Expenses	CY 2022 expenses (1/1/2022-30/9/2022)	$13,055,787	$17,407,716	Expenses 1/1/2022-30/9/2022 (/3*4)
28		Subtract increase in inventory levels @ 50%		-$500,000	$1,000,000 increase in inventory at sales value
29				$16,907,716
30		Change since last forecast		12.02%	Expenses increasing
31
32		Forecast 2022 profit (loss)		$ (2,009,216)
33
34	Break Even?	Revenue / Expenses		85.59%	Probably no break even CY2022
35
36	Comparison	2021 Loss		$ (5,310,447)
37				62.16%	Improvement
38
39	Investor	13/10/2022
40	Presentation	$50 million sale pipeline for remainder CY2022
41		$180 million for CY2023
42		I am only forescasting $1.5 million of this to be realised
43
44		However:
45
46		From July investor presentation -
47		$125 million in sales pipeline for FY2022
48		& $230 million for FY2023
49
50		What happened to circa $65 million CY2022??????
51		What happened to circa $50 million CY2023??????