Overall, I'm going to continue to watch and wait for these "opportunities" and "resolved" backlogs of customers to translate to cold hard cash. Sorry for my long post as a non-holder, I have just been watching this company spin tyres, burn cash and result with no traction for a couple years now (since the defense contract was dangled so long ago).
Colour me unimpressed with IO saying how simple an ARR/ACV value is to calculate but then say it won't be ready until well into FY24. I bet customer churn and up selling would be just as easy to calculate. I guess it's just incredibly hard to come to terms with the numbers. The management sees the SP+SPP get hammered because the values aren't released. They still won't release the numbers because I speculate that the market currently has valued the company at a premium with the lack of transparency. I want to see the numbers and then I can accurately value the stock with an investment thesis, not wishy washy story words from IO that the pot of gold is just around the corner. I don't know if I heard correctly during the RaaS interview, but did IO say the money from the electrical pole contract was going to commence in Q4FY24? Is this what they're betting will make the company cashflow positive by FY24? Can they even make it three more quarters with recommending contracts and we all know how long it takes to actually get cash from clients.
Sustained quarters of solid cash flow positivity may rerate this stock but without that R&D reimbursement in the last quarter, they'd have been ~-$1.4m in three months with only ~$2mill left.
This gives a stark run rate for the next few months, goodluck hiring talent that may be out of a job in a few months time! I think the total cap raise was meant to give some job security to retain talent, however it failed pretty spectacularly. In my opinion, if I was personally working there, I'd be keeping one eye out for better opportunities. The company may be strapped for cash to payout any staff entitlements/severance if it were to go bust.
3DP Price at posting:
5.1¢ Sentiment: None Disclosure: Not Held
