That is a great point. He must be banking on the fact they will...

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EDDYDudes

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16/04/24

10:20

Post #: 73363044
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Originally posted by jaluma: ↑

I noticed a small change in language between the HY (late Feb) and the Annual Report (early April).
Maybe reading too much into it, but compare for yourself.

Half Year - Expect to be EBITDA and Cashflow positive during H2 FY24
Annual Report - Next Science expects to achieve a cash flow positive position on a monthly basis by the end of FY24.

There was no reference in the Annual Report to EBITDA positive.
And now cashflow positive only on a monthly basis by December 24.
They lost $1m a month last quarter.
They had $9.2m left at Dec 31st, but that is now likely to be under $7m at best, maybe closer to $6m.
I doubt IV will be comfortable with less than $5m in the bank given the global environment.
That potentially means he raises in June / July, after tax loss selling.

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That is a great point. He must be banking on the fact they will be cash flow positive, and if they remain on that trajectory then they might take out a debt facility to cover the short term challenges, before being a much larger fit out.
There is nothing currently in the market that indicates this business can not be a $100m USD sales company by 2026 with the current growth rates, which would make it very attractive on the current market cap valuations.
Agree with you, it's a big couple of months for the business as we lead into December 2024.

NXS Price at posting: 38.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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