Hi @Snowboard I doubt you're going to see $5M of revenue in the...

Hi @Snowboard

I doubt you're going to see $5M of revenue in the June quarterly report.

2 reasons for this, given the accounts show that Syntonic in the year to 31 Dec 2015 had $568K of revenue & a gross profit of $513K on that revenue (ie cost of sales were just $55K).

Deferred revenue was $148K at the same date.

Secondly it says $715K was spent on the continuation & development of the Syntonic business in Q1 & a further $400K was going to be required prior to the completion of the offer.

See investigative accounting section of the prospectus (pages 65-68 & 79) for confirmation .
http://www.asx.com.au/asxpdf/20160513/pdf/437750pxzlwjpw.pdf

So cash-burn is low and falling, yet roll-out of the product hasn't really started yet.

Not only was the $7M placing pulled they also pulled options that would have raised a further $2M at the same time.

LOTM