Well i just had a chat with David. Everything i suspected was pretty much confirmed. None of this was actually new news since it has all been revealed by LVT. The only difference was that David clarified things and gave me a run down on the laws.
So the cuts that where announced will take LVT into cash flow positive as early as march qtr according to their calculations and currently have plenty of cash to last 2 qtrs right now since the last qtrs expenses included about 1m+ in expenses from CYCL payout and the seasonal yearly AUDIT. SO technically their negative about 1.7/8 a qtr before the cuts. So thats 2 qtrs of cash left ($3.6m). The cuts will not affect revenue for the core product but will affect the overall revenue including MNZ and Humanlink ( around $3m a year). This drop in revenue from MNZ and HL will be offset by the savings from cutting the expenses from them which total about 7/8m in expenses. In other words they are cutting MNZ and HUmanlink completely. ) david is a smart man) So thats a saving of around $5m. The core product is Net positive and had lowest churn ever of %97.7. Current clients are now extremely happy with not just how the software is being developed with their new updates but also with the communication from LVT. One of the main problems they had before David, was account managers not communicating well with their clients. This happened mostly when new account managers would take over the role. This has been addressed and the software updated in a way that also alerts account managers of this. So this is why churn rate is lowest ever at %97.7 while other saas are between 10 and 15. In regards to Karl, he clarified that Karl can not be voted out, only the board can get rid of him. So this means that we would need to apply for the 249 form to get rid of the board and replace it with indenpendent board members who will go to a vote from shareholders. Then this new board can get rid of karl. David was very positive about what is happening with LVT and strongly believes with all his heart ( his words) that under the current plan, lvt will be cash flow positive by first half of 2024. He is not selling any of his shares. His only concern was if the plan is not allowed to follow through all the way to the end. In regards to the delisting. karl is looking to see if there is more interest now to delist. So basically we all need to let him now to fu..k off with this delisting. In regards to any interested parties in buying LVT. There has been a few interested parties approaching Livetiles for a buyout but no formal offer as yet. My bet is they are waiting to see LVT get to cash flow positive, This will also explain why David and the board have been so aggressive with cuts, fixing overhangs like CYCL. Bindtuning, MNZ and HL. It seems they are preparing LVT for an offer. He stated that all the cuts have been done all ready. Only a few remain due to negotiating time period for leaving. This qtr will be the lowest in cash in bank but plenty to continue for many qtrs after the cuts. He stated that LVT will be cash flow positive 1st half 2024 but that he is pushing it to happen before he leaves ( march). I have no reason to not trust David and believe he has been extremely honest with shareholders so far and has the best interest for shareholders and LVT.
(20min delay)