Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-67

These results are a mixed bag, rather than being outright disappointing as some have pointed out. On the plus side, they pulled in a record $1.92 million in cash receipts, which is solid growth compared to last year and last quarter. That lines up with what you’d expect from companies in a similar stage of growth, where the main focus is on expanding the customer base and boosting revenue. The acquisition of Limepay is a big strategic win too. It should strengthen Spenda’s payment capabilities and open up new opportunities, which is pretty typical for companies looking to scale up quickly through acquisitions.

That said, there are some things that raise a bit of concern. Their cash reserves took a hit, dropping from $9.8 million to $6.5 million, which suggests a considerable cash outflow. This isn’t unusual for companies in a growth phase, as scaling up often means higher costs, but it does mean there’s a fine line between investing for growth and burning through cash too fast. Their operating costs have also gone up quite a bit, particularly with product manufacturing and staffing. Again, that’s common for companies in a scaling phase, but keeping expenses under control is crucial to avoid putting too much strain on the cash flow.

Spenda’s cash outflow from operations did improve slightly, but they’re still not cash flow positive. This isn’t shocking for companies that are investing heavily in growth, but it’s definitely something to keep an eye on. The real test will be whether their strategic moves, like the Limepay acquisition and the upcoming SwiftStatement launch with Capricorn, can start generating meaningful returns in the next few quarters.

When I look at similar companies, Spenda seems to be on a typical growth path. They’re making the right moves by investing in new products and partnerships, but the key difference between good and great companies at this stage is how effectively they turn those investments into results. So while there are some bumps in the road, I think Spenda is heading in the right direction. It’s all about executing well on these strategic plays and keeping a close watch on the financials to stay steady.