Vmoto and Social Media, page-1052

Sorry, but I don't see VMT needing to raise capital in the near/medium future. Unless formidable further black swan events occur. Touch wood.

A lot of their capital is not allocated to anything. See below.

On 31st December 2023, we had AUD 42.5 million cash on hand.
- AUD 14 million (ish) for new manufacturing facility construction (should be less as land is secured and construction has started so some intial payments may have been made before the cash on hand figure of 42.5 mill 31st December 2023).
- AUD 4.3 million bank operating facility debt paid in full

= 24.2 million cash on hand.


From 3Q 2023 report:

"Expansion of manufacturing capacity with proposed new facilities
As announced on 6 September 2023, the Company signed a construction agreement to build the new 32,856m2
state-of-the-art manufacturing facilities at the Company’s recently acquired industrial land in the Lishui
Economic Development Zone in Nanjing, China with total estimated construction costs of RMB66 million
(~AUD14 million). The construction costs will be paid in 9 phases linked to construction progress from September
2023 to September 2026, subject to the satisfactory completion of each phase. The new manufacturing facilities
are expected to be completed in September 2024 and operational by the end of 2024."

IMPORTANT ^ The construction costs are not due all at once.


From the latest quarterly:

"The Company’s balance sheet remains strong, with a closing cash position of A$42.5 million as at 31 December
2023.
The closing cash position includes the proceeds of the Company’s recent entitlement offer and follow-on
placement, which received strong support and raised a total of A$15.8 million (excluding costs). The Company
will utilise proceeds to assist with:
• discussions with potential partners in Brazil, South America, Thailand and/or Middle East for joint ventures
which may eventuate in 2024;
• pursuing business opportunities more aggressively, relying less on loans and/or existing funds which have
been allocated to the construction of manufacturing facilities in Nanjing, China; and
• reduction of business risks given the current economic climate."

IMPORTANT ^ None of the 3 dot points above have any level of commitment and don't have any cash amount locked in.


Also from the latest quarterly:

"Despite the recent decrease in international sales, the Company remained operationally cash flow
positive for the quarter, reflecting strict cash flow management and an ongoing focus on cost control."

IMPORTANT ^ Despite regress in sales they were cash flow positive.


From the announcement "Shortfall Offer Closes Significantly Over Subscribed":

"The Company will have 395,487,192 Shares on issue following the issue of the New Shares under the Shortfall Offer and
Follow-on Placement."



Key takeaways:

- 24.2 million cash on hand after accounting for payments for the new manufacturing facility (that are to be paid in 9 phases September 23 - September 2026), and after accounting for the 4.2 million of debt payment made post 31st December 2023.
- No commitment to, or allocated costing amounts beyond these two above, so the company can manage expenditure. FUNDS ARE NOT COMMITTED OR ALLOCATED!
- Despite recent sales drops, the company still made a profit. Meaning unless sales fall a great deal in the next quarters/year, VMT should not operate at a loss. If they do, it will be eating into 24.2 million of cash reserves minimally.
- The company has told us they have 395,487,192 shares on issue after the allocation of the new shares from the recent cap raise. 6th December 2023. This is a fact.