I’m back…. And the drop begins. Whaaaaaattttttt? And after XTRACT posts some stellar results…. Lol…for the umpteenth quarter and still under $1m in revenue …. Amazing!
This Comedy Theatre never ends with this Canadian security tech space ! Just look at Plymouth Rock, First Responder, and the whole lot! It’s hard not to watch the bleed out, like watching a reality show disaster while eating popcorn... all very addictive.
Xtract bleeding an average of ($3.8m/quarter) with $8.5m in cash on hand as of April 30. We'll, you can just knock another ($2.5m) off that balance now that we’re in JUNE. BUT.. ok, I concede, please add in +$520k in average revenue (ie $260k/mo) in for these past 2 months. Net loss in 2 month ($2m) … Estimating $6.5m cash in bank at end of June. And $5.5m in cash in bank by end of Q4 & FY2023 on July 31.
Just as I had projected in prior posts....
Q3 Revenue
$0.802M platform
$0.073M Xtract
$0.875m Total
Q3 Operating Cost
($4.675m)
Q3 Net Loss
($3.82M)
Cash On Hand as of April 30
$8.55m. And, yes, that included the recent dilutive $13m investment from Madison Square Garden Group. (Maybe MSGG just buys them for 10 cent a share.)
And with all this. . Xtract leadership constantly, and at nauseum, brushes aside the horror above to spin a nice yarn of pending contract values of $$$$ millions. YET! nothing but an average of $260k in revenues per month. And not a whisper about their past big revenue generator of Xtract side, which in 2022 delivered 3-4x more than Platform side and has now tanked (what, no gov contracts?). True, Platform rev is up by 4x at $1.95M from $0.50M in same period as 2022, but that is a 4x over 3 quarters, not 1 quarter. Net loss is up greater than 50% at ($13m) from ($8m) during same period 2022. Xtract1 is losing an average of $4.3m per quarter, but make $2.3M in 3 quarters (again avg $260k per month).
Something is off and out of whack including the high of this stock…. which is now dropping. 7 cents... ouch!
Well, let's see q4. Here are my most humble projections
- FY2023.
- Revenues: $2.8m
- Operating Costs: ($17.5m)
- Cash in Banks's of (July 31, 2023: $5.5m
- and Cash in bank by time of FY23 MD&A (Oct 31) ... maybe $1m-2m
Let's see how close I get....