4C March 2023
Observations
- I don't agree that Wrkr sustained an operating cash flow of $289k.
- You should deduct the Govt R&D grant of $922k which would leave a negative quarterly result of -$633k.
- While revenues are up 39% I now doubt Wrkr will make their FY revenue guidance of $6.5M. See slide for commentary.
- I don't see revenues experiencing a step change to indicate we are achieving market penetration with our services/products.
- Forgive the pun, but Wrkr Ready is obviously not READY. It is still being built-out and the commentary in the 4C in my view confirms this.
- Wrkr Pay 2.0 still has much further to go in its build-out as well.... 6mths - 12 mths?
- I am sure there is a lot happening behind the scenes, and everyone is working hard development wise, but meaningful sales at this time is lacking.
- Link relationship - we first heard of a possible large client back in Feb 2022. An MSA agreement with Link was announced in June 2022 with an initial work order for $300k to co-design market leading products. In November 2022 we were advised of the Agreement to provide our suite of services; SOW 3 (scope and planning) was to complete in 8-12 weeks, which has been and gone, SOW 4 1M members to be transferred as the initial test group with an income potentially of $2M p.a. Here we are April 2023 and now our relationship with Link requires a proof of concept for international market implementation of our services. Large partnerships are great, but risks abound especially the element of time.
- What stage is Wrkr's blockchain development?
- It seems we are standing still developing services and products for the Link relationship that is yet to be financially consummated.
- I don't get how we utilised so little capital when you see the cost of the platform development recently undertaken? (Refer slide)
- I also can't find confirmation of the interest received from float monies that I know will now be more substantial because of the interest rate increases. Can anyone help me out with this??
- We have a time frame within which this business needs to evolve, as I have outlined in previous posts, and this 4C is not showing the advancement required at this time.
Don't get me wrong from my comments above, I am supportive of management and the business but things need to move along.....soon.
Ian
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