Hi PinchOfSaltBest to go back and look at the Q4 4c ...June 2022...

Hi PinchOfSalt

Best to go back and look at the Q4 4c ...

June 2022 Quarter Activities and Cash Flow Report Highlights:
• Record quarterly invoicing Q4 FY22 A$4.2 million
• Record full year cash receipts FY22 A$7.9 million (93% YOY
growth v FY21 A$4.1 million)
• Q4 cash receipts A$1.7 million (21% YOY growth v Q4 FY21)
• Cash outflow from operations ($1.4 million) impacted by
additional A$2.5 million receivables at 30 June 2022
• Business operations continues to self-fund organic growth

The Company report Cash Receipts at a disappointing A$ 1.7, this only 21 % above the same Qtr a year back as well as below the Q3 FY22 Receipts. They defend this by informing the market they achieved record Revenue of A$ 4.2m in the Qtr and highlight the fact that the negative Operating Cash Flows for the Qtr ($1.4m) were impacted by an ADDITIONAL A$ 2.5 m of Receivables as at 30 June.

If considered in isolation, we have perfect maths

Invoiced A$ 4.2m in the Qtr, Receipted A$ 1.7m in the Qtr with the difference of A$ 2.5m showing up as ADDITIONAL Receivables.

They now issue their Prelim FY report showing the Receivables carry into FY23 at a touch under A$ 3.5 m. You could conclude that they therefore had roughly A$ 1 m of Receivables at the end of Q3 where nothing was receipted in Q4. Less plausible ?

In so far as the extra A$ 1 m of Receivables is concerned, a portion could possibly relate to the R & D rebate. A$ 0.69 m shows on the Income statement as Revenue Other. The narrative talks about the R& D rebate ( A$ 683K ). We know this was not receipted in Q4, so is this number parked in the Trade Receivables number on the Balance sheet.

The one positive out of all of this is that we enter Q1 FY23, historically the weakest Cash Receipts Qtr (Ian's USA summer holiday story), with A$ 3.5 m of Receivables. Could set us up for a very strong Q1 FY23 4c supplemented by the Annual R& D rebate receipt. Worth looking at the graph to compare 3 yrs history of Q4 vs the next years Q1 receipts.

We now await the final FY22 report to complete our analysis. Mmm !!

Rokewa