I think this answers part of your issue. 'The Company's ATO payment plan was extended to Q1 FY25 to cater for a change in the payment cycle of payroll witholdings. ' ATO current payables at the end of Jun were $778K & long term ATO payables $142K.
A significant item is the final payment for Inverse due in Oct $319K, which if it was going to be a problem they would have already done a CR by now IMO.
The liquidity would be an issue for me if they weren't now cashflow positive & still growing very strongly. The company overheads are pretty low at $200-$250K p.m with the remaining payables just flow through from contractor placements that are now achieving a margin of over 12%. I believe they have significant scope to leverage this cost base before adding any further cost.
The biggest single risk is of course if a customer/s go bankrupt but as their focus is on the resources sector I can't see that being an issue in the immediate term.
Anyway good luck wherever you invest your proceeds.
HMI Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
