Or look at it this way ... they already have a TCV for FY23 of...

Or look at it this way ... they already have a TCV for FY23 of around $34 million ($32.9m ARR + expected support renewals of $1.1m). They have booked $18.8m of that revenue already, so there is still around $15.2m still to come this year. So without any further revenue to be recognised this year, that would make a total bank balance of around $26.2m. Then deduct $20m of expenses using your formula, and then balance is $6.2m.

However, I think this is a very simplistic way of forecasting revenue, given that H2 is usually the biggest generator of new contracts and work. So then you are looking for increased revenues recognisable this year. And I have to be confident that they can generate at least the shortfall of $4.8m over and above what is already predictable. So to me, that just confirms the likelihood of a cashflow-positive year.

DYOR ... GLTAH ...