Breakeven will be on a operating cashflow basis. So the cash receipts for the quarter will cover the operating expenses. The company may have drawn on loan funds earlier in the quarter to cover expenditure that required payment before revenue was received, but there should therefore be a positive movement in cash and cash equivalents at the end of the quarter (i.e. if they drew down $1m from the loan at the start of the 1/4 and costs paid was $3.5m and cash receipts were $3.5m, there should be $1m cash on hand). That's something that I'll be looking at on the June 4C. Also looking to see the cash receipts from investing activities, which will be the loans that went to the balance sheet after the sale to Grapple and have been recouped to date.
I think this next 4C will receive a lot more scrutiny than the past ones where we have been expecting it to be loss making and it was just a matter of 'by how much'.
SPX Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)