What a difficult situation this company finds itself in.

The R and D credit keeps the dream alive for now but with only 3.9mil in the bank and nowhere near profitable its hard to see how your equity doesn’t get wiped or at least severely diluted.

Very real possibility of a donut here in my opinion.

The CEO puts it well:

“The challenge for the Company is its current cash position and the impact on operating cash net outflows due to customer churn on the COVID-19 related Presence Control portfolio and delayed customer receipts due to longer timelines to finalise new sales and achieve project delivery milestones across the broader portfolio. The Company is working hard to address these challenges and is making good progress. 

The Company recognises that it may need some additional funding sources to support working capital as new customers come on-line and continues to closely work with its advisors to consider its options.”

Thoughts:

I have a very small holding but mainly because the company is so illiquid now its difficult to sell.