Sales down 40% this quarter against the corresponding period [Jun22 $1.3m vs Jun21 $2.2] and this was supposed to be one of the better quarters historically.
Cash payments [costs] this quarter look low against previous quarters and the average. You look at Staff, Admin, R&D costs this quarter and they should in theory be higher when compared to the previous quarters. Perhaps savings have been implemented …. or perhaps payments have been pushed out to the next quarter (and is there a reason for this).
Net operating cash outflows this quarter were only -$95k, with $1.3m in receipts – last quarter net outflow were -$562k on far higher cash receipts of $1.9m.
The last 3 quarters cash net cash outflow has averaged -$500k on stronger sales – now on declining sales net cashflows have dropped to only -$95k --- something is not quite right there.
Interest payments are being deferred, which is nice, but still have to be paid back at some stage and the interest rate has risen from 6 to 8%. Worse is that Colintons need to be paid back at the end of next year, yes they can convert the debt to shares [I think] at 6 cents a share … but will the shares get back to 6c. If Colinton don't convert then AJX needs to find $3m plus USD [or $5m AUD] to pay them back plus whatever they owe to the new financer as well.
We have the new debt facility, but we can only draw on that if sales [debtors] grow and alas they are going the other way – the current amount available is likely all AJX will have access to for a while.
So available cash and debt facility is $1.765m – with sales dropping away now I can’t see this lasting long.
