They had $6m in cash as at 30 June 2022. It's not enough even to cover the working capital requirements for two casinos. I suppose Aristo is barely operating, but even so, they will have to keep Star Vegas operations at a very low level until they can build up more working capital.
They did have $17m of debt at 30 June, but they drew down an additional $3.2m in debt in the September quarter, so more than $20m debt in total. But they did repay $0.4m in August, plus another $0.2m expected in September, which just proves that every cent in profit will be paid back to the Thai vendor for the foreseeable future.
Where did you get the idea that they are making $1-1.5m in EBITDA per month? The debt repayments were $0.4m in August, plus another $0.2m expected in September. I reckon that's the total EBITDA figures right there.
In any case, you forgot about the additional $18m in trade payables (most of which is probably also owed to related parties of the Thais). And the $8.5m in lease liabilities (also owed to the Thais), plus $1.5 in income tax payable. It's a massive working capital deficit.
You can forget about buy backs or dividends for the foreseeable future. There is nothing in this for minority shareholders.
DNA Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
