Ann: K2fly Extends SaaS Solution with Newmont for 5 years, page-17

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skinsy11

2,639 Posts.

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18/09/21

21:06

Post #: 56178271
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Originally posted by Brett M H: ↑

I suspect the market wants to see K2F get back to positive cashflow numbers - or a least get back close to cashflow breakeven.

The latest acquisitions have (understandably) cost quite a few dollars upfront, and K2F now has also significantly increased overheads / staff.

K2F achieved a couple of cash flow positive quarters last year:

Qtr ending 30/6/20 was $534k cash flow positive

Qtr ending 30/9/20 was $284k cash flow positive

Including any costs for IP, they have then been cash flow negative for the past 3 x quarters:

Qtr ending 31/12/20 was $897k cash flow negative

Qtr ending 31/3/21 was $455k cash flow negative

Qtr ending 30/6/21 was $736k cash flow negative (plus another $656k cost in IP)

They have a stack of cash in the bank (around $6.9m at 30/6), and these renewals are a very good sign.

But I would like to have seen the renewals at slightly higher per annum $ figures, and clearly they need to start generating higher overall revenues (particularly from the Decipher acquisition / product).

I am confident they will get there, but the market wants to see some bigger $ new contract deals IMO - before the SP takes off again.

Have a great weekend everyone

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Brett, yes, I think your analysis is right. We need to see a significant improvement towards cash break even but with a big improvement on the contract wins side.

K2F Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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