The last HY high cash burn incorporated one-off restructure and acquisition costs as mentioned in the report, the January quarterly update also addressed this and gave an indicative monthly net cash burn going forward:
The update shows roughly $7 million cash and equivalents that should have been realised as of now.
$425,000 net monthly cash burn for the 6 months is $2.55 million cash burn worst case, not including any new subscriptions which are paid monthly and can have an upfront payment included.
Since the January update roughly $1.2 million ARR increase which translates to $100000 of subscriptions reducing the net monthly outflows, plus the large Middle Eastern Government one-off payment added to the kitty.
I believe that the cash position will be higher than the $1.5 million you have estimated, the accelerated sales completions will be fast reducing the net monthly outflows such that they may avoid a capital raising. If not the last rounds of capital raising has been at the 9 cents level and I would expect that this will be a floor for the price going forward.
EVS Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
