I note the misleading statement about not requiring equity raising for working capital with the current operating model. It deliberately does not mention equity for Capital Expenses. (marketing, technology development, corporate restructures, updating operating model, investment in production... you name it)
I ask the same question to the unquestioning Pollyanna shareholders that I have asked nearly every quarter since 2019.
When do you predict the next capital raising will be?
Shareholder equity has fallen from $2.5m in FY 2020 to $640k at EOFY 2022. Anyone got a predictive calculation for P/L for FY 23? Mine is $2m, up from $1.91m in FY 22. During this same period $6.28m of new capital has been deployed with more to be raised.
Lets put this in perspective.
In the last HALF DECADE.... Spectur has deployed $6.48m in new capital ($198k in 2019) to grow revenue by less than $3m. In other words 68% growth in 5 years. That's right, 5 years and revenue has not even doubled. Pretty stunning for a product that "has no competitors". This month will start the FY that marks a half decade for the current management team.
The current leadership has admitted they have not succeeded on revenue growth. They have been unable to identify and hire the right people in sales. This latest "key recruit" in sales I suspect, based on passed hiring selections in sales and marketing, will yield similar poor results as previous hires. I genuinely hope I am wrong.
As for future CR, I have no doubt based on the history of SP3, that the attempts to grow 3CT revenue will result in huge capital outlays and yield mediocre revenue growth of 3CT customers too. History is very pointed on this. Again, I sincerely hope I am grossly wrong on this.
At what point do shareholders band together and demand change?
SP3 Price at posting:
2.3¢ Sentiment: None Disclosure: Held
