Don't forget they will be eligible for a bigger tax offset plus R&D offset from the Thales/airport gigs. I reckon they will have ~2.2-2.7 Gross profit from Nano sales depending on purchasing efficiency based on last half year figures.
If most costs are similar and exchange benefit kicks with Capex of $0.6 m and say 40% of inventory forward loading cost retained say $0.4m, I guess the loss for 2H FY 20 will be in the order of -$2.5 m.
They had $12.2M cash at the last half so they should avoid a CR any time soon. That will be a blessing in the current lower valuation climate.
If one or two more big orders come in in the next 3 months that will add ~600k per million to gross profit based on H1 FY20 margin. It is not likely to get to break-even with that but next FY with Rover added to the stable there is a n outside possibility for that for EOFY21.
All in my guesstimated opinion so have a look when you DYOR and see what you think. GLTAH
MX1 Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
