With these small companies, you can obviously never discount a...

With these small companies, you can obviously never discount a CR, but management sound pretty confident that a CR won't be needed.

See notes from the Quarterly below:

8.6.1

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?

Answer: No – as outlined in the Quarterly Activities Report, several operating costs incurred in Q4 were one-off (such as advisory and interest costs associated with completion of the capital raise and debt repayment) or seasonally higher ‘event-driven’ expenses which will be reduced in future periods.

Additionally, Atomos is expected to complete its cost restructure in Q1 FY25 which will see a further reduction in the run-rate cost base.

This, coupled with the launch of new products, being the Ninja Phone and Sun Dragon, will see a significant improvement in operating cashflows from July 2024 onwards.

8.6.2

Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer:

Yes. Management have engaged with several lenders to provide a Working Capital facility and we believe this will be in place prior to the end of Q1, 2025.

Separately, as part of the capital raise completed in May 2024, 551m options with an exercise price of $0.03 were issued.

This represents a potential $16.5m of further capital that may be injected into the business, subject to Atomos share price performance and investors exercising their options.