I'm not impressed as per the following analysis below of Q2 against out Q1 in the financial year
Revenue down from the prior quarter
Operating expenses up
ARR has been rounded up by management to 15% when technically by rounding they should have shown 14%
Management did such a tiny amount in the SPP it reflects to be a "tick box" exercise to try and promote hope to investors 'directors participated'.
Daniel recently stated 'the SPP is CHEEEAP buy it' does anybody know if he added to his holdings since?
They were provided a government grant for R&D for $1.5m if that didn't happen, cash balances would be $1.5m less AND it doesn't appear they have even made the new acquisition they were stating in the SPP, they will drain even more cash initially and ongoing opex wise.
Gross margins down 3%
104% increase on prior comparative quarter isn't impressive when your a global company on revenue that's already insignificant, any contract win = a large increase, it's consistently large wins that are impressive, we are not seeing many in my view.
Also the licensing increase of 1,126% is on the Q2 in 2021 at $51,100 we are now at Q2 2022 $645,200 isn't once again significant revenue by any means in terms of an ASX listed company, if you just look at that and don't run the numbers it's fraught with danger.
Whilst I do think this area/industry is growing I still hold short terms concerns, the business is not de-risked yet, I see another CR in the future if they don't land large and ongoing contracts.
I'm sure those with an analytical approach will agree with my concerns above.
