It hasn't factored in the reduction in spend amount mentioned into the cash runway amount it has quoted, and just gone off what they had to put down by ASX regulations (without revealing the next quarter's spend). ChatGPT is notoriously bad at factoring in maths into its LLM. Also, it hasn't factored in the DoD CT VLAS pilot results due soon, as it wasn't mentioned in the update.
The results are not great, but not terrible either. I was expecting at least another $3m in the bank so I'm a bit disappointed to see only $16.8
Because they can't tell us how much they have spent in the past month (of the current quarter) they can't accurately tell us how long their cash runway is, so they have to tell us what it would be based on Q3 spend levels rolling over to next quarter - which wont be the case. Based on the calculations I did the other week, I think the cash runway is more like 2.5 quarters. Still not a lot though!
Given the cost savings haven't kicked in, I'm surprised the market hasn't been worse to 4DX, considering the runway figure they had no choice but to put down is just 1.5 quarters. Just like ChatGPT, trading algorithms would probably not pick up this nuance of future cash reduction calculations.
Personally I think we have more news coming this week or next week. But that is nothing more than a hunch.
It would be great to see some directors buying shares to show the market some confidence.
4DX Price at posting:
28.3¢ Sentiment: Buy Disclosure: Held
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