Ann: Velpic Commences International Expansion, page-22

rockme....from the Ballieu review they state that management have told them they expect a cash burn of 300 - 400k month. I am avoiding disappointment and going with the top figure. That means they need 4.8 mill p.a. to run the operation. By my calcs they should now be at an annualized revenue rate of about half this amount (circa 2.4 mill). So no, if someone tries to tell you that VPC will be break even by the end of the quarter then tell 'em their dreamin'.

At this point cash burn - revenue = 200k per month shortfall or 600k for the quarter....again this is just my back of envelope calcs. They had 3.253 mill cash at the end of last quarter so in rough numbers I would expect cash to be about 2.6ish mill at EOQ.

Of course as we go along and more customers come on line the gap between cash burn and revenue will be ever diminishing and hopefully we will see somewhat of a sudden lift in revenue when the SME platform goes live. All going well they should be able to skate through without a CR. The only thing would be if they come across something that would be a "good fit" for the company that may accelerate growth. There may be a CR in that case. But unlike the CRs that we have all come to know and despise in the junior mining sector that are used mainly to pay mining exec salaries, a CR for such a "good fit" may be seen as beneficial by the market if the market believes that it will lead to short term revenue benefits.

VPC is definitely much better placed than all of its SaaS cousins in regards to closing the gap on cash burn. this is why I call it a cockroach. 1PG revenue is very poor against cash burn but at least they raised that 40 mill when the SP was sky high so they have some breathing space. As for things like RFN, DUB and ISX all I can say is.....