I had a look at QRS' annual report over the weekend. It seems...

I had a look at QRS' annual report over the weekend. It seems that the recent rights issue did not raise enough money to give QRS a 'cash cushion'. Rather, the rights issue (which only raised $6.34mill before costs) was only just enough to retire the $6.32mill in convertible notes.

QRS now has no cash, and remains a negative cash flow business.

From page 32, note 1 (s) of the annual report:
''The consolidated entity is budgeted to continue to incur operating cash flow deficits and losses for the next 12 months.''

I cannot see how QRS can continue as a going concern without another sizeable capital raising in the near future.

Given the considerable difficulties the company had during the last capital raising (as revealed in the ASX releases), its ability to raise further capital must be in serious doubt.

The auditors of QRS' annual report rightly draw shareholders' attention to the ''inherent uncertainty regarding the going concern basis.''

Could recent director buying (which caused the recent price rise) be an attempt to distract the market from the extremely fragile financial position the company is in?

Is that 200k buy order at 30c fake or real? Could there be multiple fake buy order in the market depth?

Could interested parties be attempting to prop the share price up ahead of the next attempt to raise capital?

Where would the sp be now if directors hadn't bought on market? 20c??

I don't know the answers to these questions, but after reading the annual report, my instincts tell me to avoid this company like the plague.