June QTRLY Accounting Upside

Been a long watcher of this company and even made a trade from 1.2 to 2c, wish I held to the 7c mark.

Currently 7.5-8 Million MC

March 31 Qtr 2022 v Dec 31 Qtr 2021

Cash and Net Receivables
$5.4 Million in March 31 V $5 Million Dec 31 QTR

March comprised
$3.6 Million Cash $1.8 Million Net Receivables

Dec comprised
$4.6 Million Cash and $0.4 Million net receivables.

March qtr had 7 x fortnightly payroll which is rare and hence the drop in cash balance. (Lost $900k cashflow, however Cash and Net receivables increased).

I Expect a big uplift in cashflow in June 30 Qtr (Circa $1 Million cash inflow) based on the following.

• 6 fortnights of Payroll $850k less cash outflow in june qtr compared to march qtr
• If they move back to long run receivables of $0.5k then expect an influx of $1.3 million in cash.
• Income tax paid for previous year $0.4k (One off per year)

The above was all timing issues and hurt the firm share price, this is just accounting time periods and doesn't effect overall NPAT and EBITDA.

Where else would you find a firm that is has an EV of less than 30% of market value ($5million cash and $8million MC)

This firm is bringing in $2-$3 million a year in cashflow, so running on a PE of 2! PE of 2!

This should be valued at $15-$20 million, can't wait to see the june result and will be buying more if it dips into the 3s again.