IHR- Half Yearly Accounts 31 December 2022

A few points that appear noteworthy:-

cash held as at 31/12 was $1.707M;

6 month revenue was $3.888M;

employee benefit expenses $3.579M;

cash outflow from investing activities was ($2.505M) equivalent to 1.5x cash holdings before lease surrender fee payable- refer later note;

ARR stated as being $9.01M with long disclosed break even ARR being $10M- 90% ARR breakeven target achieved so breakeven in "sight";

directors stated..."the business is strongly positioned to proceed with its innovation research and development program... and with partners strategy";

new premises lease was entered into in January 2023 for a five (5) year term yet the deal with KKR affiliate surely was "in the wings" so why a 5 year term? A one year with 4 year option...? Long term liability associated with the lease being $0.81M and a lease surrender fee payable for previous lease of $0.3M (paid in January 2023 so Cash at Bank reduces by similar amount);

directors enter into a new financial commitment (premises lease) whilst at the same time enters into a Payment Program with ATO for an amount of $0.626M payable over a 10 month term- a business which has historically been cash flow negative and enters into such an onerous debt amortisation program whilst at the same time acknowledges it will not meet breakeven ARR in short term an interesting approach (Hail Mary)

As no stage during Chairman announcement was the ATO and cash flow issues, which are clearly evident, mentioned/discussed... "no issues here, let's move on" strategy?

One would have thought the major shareholders would have been "tapped o the shoulder" and asked of their likelihood for further capital investment given the optimistic comments by the BoD prior to entertaining a suitor. The answer was surely... we have had enough.... get me outta here!!!!

The BoD attitude and approach appears intriguing.