I recall someone being interviewed on Sky Business said the...

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09/04/15

18:32

Post #: 15060071
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Originally posted by gr4nt6 ↑

Hi supafly

Cash burn etc.
Let us start at the Sept 4C - Sales reported as a note in receipts at $162k with $110k reported in the figures. I gather that the funds had not been received therefore only $110k recorded. Burn rate at $1.167m.

Dec 4C - Sales of $31k for a total ytd of $141k. Interesting that the Sept 4C said sales had actually been $162k (but not all funds had been received). Allowing for NO sales in the Dec qtr the figure should have been $52k to make up the $162k that they told they had sold previously. Rubber figures to say the least or where is the money!! Burn rate $606k + R & D funds received from the Govt of $570k = $1.176m

Shareholder update - Sales of Turbine $150k. Mute????
Cash balance $3m approx
Cash at bank 31 Dec 4.459m
Burn rate ($4.459m + $150k) - $3m = $1.609m
It is hard to get the burn rate accurately without the 4C but this is what I calculate from the info presented.

Based on the above they will need to raise in around two qrts unless sales dramatically increase. I would hope (being the operative word) the Mute sales particularly with the recent deal done will help the situation in the June qtr.

Time will tell.

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I recall someone being interviewed on Sky Business said the company will likely need to capital raise soon. Smart companies tend to do it when the price spikes, so it wouldn't surprise me if it happens sooner rather then later.

It will be interesting to see what approach they take to raise funds. I have noticed issuing options has become popular with smaller companies of late.

Watching with interest...

RNO Price at posting: 2.8¢ Sentiment: None Disclosure: Not Held
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