I've had another listen to the Q3 conference call and taken some notes. I thought it was a fantastic call filled with good info. I'm confident Ralph can guide the company through to operating at CF+ without further dilution in the near-term. Once profitability is reached I'm expected a significant re-rating.
- relationships with suppliers continue to mature with vendor payment terms increasing
- development projects use outside contractors and the faster delivery of milestones resulted in a higher cash spend
- cash receipts similar in Q4 to those received in Q3
- sales pipeline increased from $22m - $31m
- 46 new opportunities with 3 new customers in the evaluation stage
- engaged in key trade shows including demonstrated operability with Decawave ultra-wide band solution and embedded gas sensor in tags
- engaging with Emerson (USD $44bn co.) for leafy green shipping containers for Walmart combining location and gas detection (https://climate.emerson.com/en-us/products/controls-monitoring-systems/cargo-tracking-monitoring)
- animal health market - multiple opportunities to expand beyond the Zoetis agreement.
- mining deployments slower than expected due to funding constraints on new tech
- multiple new customers with mining operators such as Newtrax (acquired by Sandvik m/c of USD $23bn). Deploy collision wear solutions in several mines over the next few quarters.
- engaged with Caterpillar to furnish their equipment with proximity sensors
- Abiomed products continue to ramp up during Q4 and into FY20
- Microfluidics new opportunities - early adoption phase of lab on a chip and drug delivery
- Shipping lab on a chip product that enables THC/marijuana analysation by law enforcement agencies. Needs another development cycle to get the price down for more uptake.
- Silicon moulds for membranes to be able to deliver drugs through skin using a mems-based patch. Currently worth $100s of K to Sensera now but FY20 wil be much more meaningful sales.
- Big R&D spend was on 2 particular projects (Nanolox controller chip and software platform development in conjunction with Clearblade)
- tail-end of development of third-generation Nanolox. Testing completed in Q3 and majority of cash will not be repeated in Q4.
- Nanolox the last chip development program as have partnered with Decawave for next generation chips
- Software platform to build location as a service that will result in monthly recurring revenue. Spending should be reduced dramatically during Q4.
- made adjustments to ensure better performance to the costs to ensure profitability
- strong backlog to ensure the company hits Q4 revenue targets
- debt financing expected after Q4 results
- prepared to operate on a very tight cash level
- amount of current cash will suffice to get the company through to a cash flow positive level
- based on expenditure and cash receipts, expected to burn between $400-900k during QTR 4
- Cash balance may go as low as US $500k during the quarter but this has been built into their plan
- Operating in a CF+ position from May-June. First full profitable qtr will be Q1 20 and expected to be sustained and not a one-off.
- Not the company's intent to dilute moving forward
- Looking to license Towakon and will not be spending any more money on it
