Hi CG,
Re: Cash burn rate question
With a company this small and no sizable monthly sales,
each transaction can have huge impacts in predicting
cash positions.
For instance the 1/2 million in cash given to OXO in
the last reported quarter.
I notice the current liabilities jumped by 1446 last quarter
and a large move in non-cash working capital.
I also suspect some options were exercised in this current
quarter (Nov) and predict it was a sizable number.
Having said that I use the KISS principle. Unknowns are
left out and I use the previous reported numbers as is.
From that I get:
Cash Aug 31 -219,000
Deficit for quarter - (2,695,000)
Non cash amortization - 107,000
Cash from issuance - 1,500,000
Equals net cash Nov 30 - (869,000)
So I'm short 869,000 and I think the Sales&Marketing
expenses rose in the November quarter.
Possible pluses:
Dioptic labs sales came back on stream for 250,000+
Exercised options created a small 6 figure cash amount
Revenue was received from Provalis
Possible negatives:
The Cdn sales force expenses
The current liabilities had to be paid
Further capital asset investments for the plant
(I suspect item 2 is related to the plant as well)
I'm waiting for the next week or so to see how they pulled
this off without a decent chunk from Provalis.
For Feb 28 they have just about the right amount of cash
from this draw to get through the quarter.
Reviewing Rebecca's comments about cash positive by end
of Feb makes for an interesting quarter to watch.
All in all she has kept the ship going during our delays
for beaurocracy with less dilution than the previous year
Wolf |
