Alright so I really have not been paying attention, and fair enough criticism levelled at me for ra ra new BOD. But let me have an honest look.
1: Revenue for Dec quarterly: $1,912,000 / Revenue for June Quarterly: $1,395,000 - drop of at least 35%.
2: Check Product Manufacturing costs. Increased by almost $400,000 from March to June yet revenue drops by almost 20%.
3: Admin & corporate costs increase by almost 70% from March to June quarter. (SURELY THE BOD COULD SAVE SOME MONEY HERE AND NOT DILUTE SHAREHOLDER VALUE WITH A RAISE????)
4: We had no dividend payment from IDSB in March quarter. (I am pretty sure its paid bi yearly, just keep that in mind when considering next quarter)
5: Look at the Director & Consultancy Fees. How do we suddenly have a 680% increase from March quarterly, after you compare Dec to March quarters and there was a drop.
6. Staff costs have dropped, but consultancy fees have increased. This probably isn't great news... why are we letting the talent go and relying on clearly more expensive consultants? Seems like there's a direct correlation between paying consultants instead of staff and revenue dropping!
Couple of other things
With the question from ASX: Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?Read comments below. First 2 quarterlies, they say NO. The last quarterly they just say "YES" How do they actually have this expectation??
December report commentary:
This quarter included significant legal and advisor fees that are not expected to be recurring. With the benefits of the cost optimisation program delivering incremental savings, together with a measured approach to incurring legal & advisor costs commensurate with likely recoveries, the Company expects ongoing net operating cashflows to improve as the Company stabilises and rebuilds.So in the above they say significant legal and advisor fees are not expected to be recurring. This did prove true for the March quarter as these costs dropped by 50%, but June quarter we are back to basically paying the same amount.
If you add in the additional $280K in consultancy fees for June quarter, then we have paid the same amount in December last year to June this year - yet they keep telling us costs will not be recurring?
March report commentary:
This quarter included elements of legal costs that are not expected to be recurring and will only be commensurate with further recovery outcomes. The benefits of the cost optimisation program have delivered cost savings and with the focus on revenue generation from the core business, the Malaysian business was positive cash flow quarter. In addition, together with a measured approach to incurring legal & advisor costs commensurate with likely recoveries, the Company expects ongoing net operating cashflows to improve as the Company stabilises and rebuilds.Same comment in the March quarter about legal costs not expected to be recurring on only commensurate with further recoveries.If that is the case, why did we then have a spike of over 70% quarter over quarter for the admin and corporate costs (which is where the legal fees are).Then for all of that, the comment in the June quarterly for the same question, they have now put "YES".
The BOD can reasonably expect 1.5 million in revenue this coming quarter from existing business, and as per their continued promises, expect to also receive significant funds back in litigation.
If you consider the increase of consultancy, corporate and product manufacturing costs to March level.. thats 1.2 million more... Thats the cap raise.
Interesting.
I don't really know what we as SH can do. Pen some emails suggesting that you think dilution is NOT the answer. Get on the phone to them. I know we are all tired and it seems hopeless. But its pretty clear the money is going somewhere it doesnt NEED to.
(20min delay)