DRAGONTAIL DECEMBER 2020 QUARTERLY ACTIVITIES REPORT ANOTHER QUARTER OF GROWTH
Highlights
? Continued strong growth in Cash Receipts from Customers for the December ended quarter, Q4 FY2020, of US$516k 1 , up 28% compared to prior quarter of US$403k, and up 141% on Q4 FY2019 of US$214k.
? Cash Operating Expenses held constant for the quarter, demonstrating a continued trend of the business scaling well globally, with presence on all continents.
? Second round of funding commitment of US$4.2M by Eldridge confirmed during the quarter (subject to shareholder approval scheduled for 3 February).
? Contracted stores more than doubled in FY2020 with 9,291 stores at end of Q4 FY2020 (up on 3,814 stores at end of Q4 FY2019), and total installed stores increased to 2,663 stores from 2,003 stores (up 33%), achieved despite difficult COVID circumstances and using remote installation measures.
? Key agreements signed with leading USA QSR chains like Papa John's, Sweetgreen and a large QSR Franchisee, which reflects the initial success in the Company's effort to expand into the USA market.
? New integrated drone food delivery optimization capability was implemented into the Algo Platform following winning of a government tender.
? Customer retention: Dragontail continues to celebrate no single customer switching away from its game changing technology.
? Strong cash balance: US$2.2M1 per 31 December 2020 plus US$4.2M from a committed strategic fund raising expected to be received within 30 days following shareholder approval.
? Post quarter end: appointment of two US based Directors to the Board – Mr Jon Weber & Mr Jeff Wilbur.
? Outlook:
With the recent round of fund raising combined with the pre-existing cash balance at the end of December 2020 and consistently growing cash receipts, the Company has a very strong cash runway to grow the business substantially in calendar 2021, while maintaining a firm grip on the cost structure.
