SP1 (ASX) Ann: Operational Update

Originally posted by jlo2012: ↑

$17.7m at 31 Dec

Somewhere between $2.3m - $3.5m of that is not actually company money but security deposits.

$4.2m gone on the into the NSX "investment".

Left with about $10mil at bank and dropping now it would appear IMO.

EBIT positive in Jan/Feb - whatever that means. Is that $1 positive each month or $1m a month or something else. When you say something non specific - it can mean anything.

Also, is that EBIT positive or 'Operational EBIT' positive with all those convenient exclusions? See IMO, under the ISX definition of EBIT 'Operational' positive - you can be EBIT positive and cashflow negative all at the same time.

Either way, pretty clear cashflow has turned negative now in March. No chance IMO of raising any money whilst suspended and in the current climate.

I'll look to post my deep dive into ISX merchants soon. Bit of an eye opener. Has anyone found a merchant that actually uses the amazing patented Paydentity split payments?

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Such a negatively loaded post, don't understand the point when the entire world market is bracing itself for a slow down including established/stable cash flow positive and profitable companies.

Yes, closer to $10-11m cash in hand after NSX and taking out $2.4m of merchant security/card-based, etc. Compared to most start-ups, this is still a good position to be in. And if macro-economy collapses further, I'm sure internal risk mitigating strategies would kick in conserving cash as much as possible. I trust JK and the team entirely on this.

Why bring up this EBIT definition over and over again? It was established what JK meant when he used this definition, i.e. to convey 'excluding non-cash, one-off expenses'. This is a business that is on a continued investment/growth path. I'm okay and I'm sure most LT holders are fine with it. Even if ISX is $1 EBIT positive (JK's usage), it's still great news. At least it did not go backwards from an operational viewpoint given the circumstances.

Also, intrigued as to why ISX would need to raise money immediately for its ongoing operations when we don't know the outcome of qrt 1 operations and also future plans?

Finally regarding 'split payment', look forward to that post. However, 4E was a great indicator of ISX's tech prowess that to achieved in difficult conditions. If gaps are found in your analysis, Great! more revenue opportunities.