With new subscriptions from Guess and Cadillac Fairview coming into effect in October and November respectively, Receipts from Customers should show a further significant improvement in the December quarter.
Plus, the expected implementation of the Live Receipts contract with Retailers Express in early 2019 bodes well for further revenue growth in the following quarter; and that, in turn, should significantly reduce the rate of cash burn.
By way of illustration, a reasonable-looking 4mUS$ in Receipts for DQ18 (from 2mUS$ in SQ18) would already reduce cash burn for the quarter by ~25%, vis-a-vis the base case).
Given the signs of early revenue traction, and the current ~45% discount to Adjusted Net Assets (net of the dilution from the Equity Incentive Plan), I’d say this is starting to look very undervalued, albeit still speculative.
