With all new products to be released and new partnerships to start bearing fruit it is not unreasonable to forecast $12M revenue for FY2023 (Q1 numbers support this). FY2022 operating expenses excluding IPO and non-recurring costs were circa $8 million and $2 million was capitalized for leases and further product development. At 80% gross margin (assuming further decline from last reported 82% figure due to higher cost of wagering technology product) we are operationally cashflow positive by the end of the year and might even be fully CF+ if opex and capex don't grow. Cash burn rate is about $1 million per quarter.
By the end of FY2023 we will have a company which:
is operationally cashflow positive
has tight share register with insiders owning more than a half of the company
is growing revenue at 50%
has $7 million in cash
is set to benefit from "rising tide lifts all boats" industry situation
All of this is available to you for modest $21 million today.
RTH Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
