Receipts for the quarter - $36,000, down from the previous quarter.
Cash at end of quarter - $2,142,000
Estimated cash outflows for Jan-Mar quarter - $1,304,000
Forecasted cash balance at end of March 2017 = $848,000
Excluding the R&D rebate, cash outflows for the quarter were $1,747,000, which equates to $582,000 per month, well above the guidance previously provided of $365,000 per month.
- The company states that cash expenditure is estimated to decline by approximately 20% in the current quarter, suggesting cash outflows of $465,000 per month.
- Based on the forecast for this current quarter of $1,304,000 in cash outflows, this equates to $435,000 per month.
Lets take an average of these two figures and assume $450,000 per month in cash outflows. With $848,000 left in the bank at the end of March, the company has 1.8 months of cash flow remaining (until the end of April).
HOWEVER, "first sales revenue from the contracts announced on 23 December 2016 have been recorded post quarter end, beginning in January 2017".
- These contracts were worth a total of $100k, so lets say that will give us a couple of weeks and take us to early May.
The killer: "First revenues under the Affinity Loyalty Distribution arrangement are contemplated in the first quarter of FY18 timeframe".
- This contract will therefore not help the need for a capital raise.
- Why was this not announced along with the original announcement?
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