Good write up @Tom73

The difference between now and a few ago seems like night and day. The raise, this new contract and the grant have pretty much taken my main risk, that a couple of quarters of slow sales could necessitate a cap raise, off the table – at least for the next 12 months or so. I think it's reasonable for it to trade where it is now or higher given that risk has been put to bed.

Thanks for the write-up. And thanks for bringing this to my attention.

I bought a roughly 1% holding IRL in July

The thing that got me over the line was the director buying. Going forward I am going to give even more weight to small caps where directors are putting their own money in

The great thing about today's announcements, particularly the Texas one, is what it says about the quality of the product. There is a huge addressable market in US law enforcement and military, so plenty of scope for more upside to come.

I think this was penciled in after the Q3 4C which was pretty disappointing. (Disappointing enough for me to sell the small number of shares I had bought). This is a seasonally weak time for iFly and I'm assuming OXR probably hasn't had as strong a quarter as was expected. Copeland buying shares would lead me to believe they didn't wall cross the placement participants and tell them about what a wonderful quarter they were expecting (which would have been disclosed today if it had occurred)

It makes me also wonder how the iFly sale process is going.

Back in the too hard basket.

The Q3 4C was disappointing I agree @UlladullaDave and said so at the time, this small capital raise indicates that cash remains tight but we will have to wait until the end of July for the Q4 4C to see if it’s due to lower than expected cash receipts or from higher growth and R&D investment. Probably a bit of both.

The exit of FREAK is happening currently based on lease exit points. The iFLY exit was only recently flagged so I expect it will be 6-12 months before that happens and they receive any cash from it. The FREAK exit is a closure so would be cash negative, I don’t expect much but in a tight cash balance it may also have added pressure for a raise.

As I mentioned when the low cash balance from the Q3 4C came out, it’s not good but they have managed a tight cash position for a long time, so I expect they will manage. This capital raise is frustrating due to the dilution, but they do need capital to exploit the XR Operator opportunity.

My biggest concern at this point around cash receipts from Enterprise sales is that the contract size seems to be dropping as an average per customer. Per below ARR per Customer has been sliding, and they are focusing on smaller customers, so the solid customer number growth we are seeing is generating less sales per customer than I originally anticipated.

I also expected around $1m of additional cash from the DoD contract to be received by now, but it’s very back ended and this is ultimately a timing issue – still important for the current cash position.

So I agree @UlladullaDave , this is a sensitive point for the business as it rotates from Entertainment to Enterprise, staying away until they prove themselves with a few quarters of sustainable cash flow is wise and what most seem to be doing.

My biggest concern at this point around cash receipts from Enterprise sales is that the contract size seems to be dropping as an average per customer. Per below ARR per Customer has been sliding, and they are focusing on smaller customers, so the solid customer number growth we are seeing is generating less sales per customer than I originally anticipated.

Nice pickup! There might be a bit of noise in those numbers given how small the business is and the relatively short time period of 5 quarters. But it's definitely worth keeping an eye on.

Thanks for your work on this, btw.