Greetings,
Fat Harry has been slowly digesting the Quarterly and the Cashflow Report. (Note the pun there!)
The Quarterly seems positive enough in a level-headed way. Lots to like and feel buoyant about without counting deals that don't exist.
What is worrying, though, is the roughly AD$725,000 that ADO has to cough up every quarter for the next 16 quarters to pay the residual amount owed for Diasource. (7,700,000 Euros over 16 quarters = 481,250 Euros/Q. or about AD$725,000. Is that right?)
We know the Diasource revenue is about 3,800,000 Euros per quarter, but even EBITDA of 17.5% leaves only 665,000 Euros, so we know NPAT will be less than that. Let's imagine that it comes to about 500,000 Euros.
So that only just covers the Diasource payment needed.
ADO's other non-Diasource activities are still cash-flow negative, so the cash available ($5238000) will be depleted each quarter. (Unless some money arrives from "Left Field".)
Does anyone have an accurate idea how long ADO can last until a CR is needed?
(I'm assuming it will be longer than the "1 Quarter" suggested by another poster. I can't believe the BOD's would cut things that fine...)
FHC
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