Chri I do not think anyone thought they would be cash flow positive, but interetsing you say that that is expected in 22 months. Given they provided no financial forecast where did that information come from?
The interesting thing is the comment from Silver that the results and the "forecast" of $2.4m is well above expectations. Not sure what way above means, but as I state above if they get to $2.4m then that is only 7% ahead of the previous year (consolidated with acquisition). In my view this implies that the acutal expecations were for revenues to fall, which might explain why there were no forecasts issued at the IPO.
Of course for the Equity Crowd Funding campaign and other capital raises prior to that they did provide forecasts, which have not been meet.
The issue I think is that these guys have been promising a lot for a long time, and other than "buying" revenue they have not really achieved very much in terms of the sale of their technology on an arms length basis.
Interesting a "sister" company Hydroworks in liquidation, following a simialr path of acquisitions - the liquidators have said that the IP in that company is not signifcant, despite it being a tech lead business.
I hope Crop Logic proves successful, but hyping things like a 7% revenue growth for a "high growth" company is not the way to build investor confidence. Deliver some real hard results.
CLI Price at posting:
11.0¢ Sentiment: Sell Disclosure: Not Held
