theinvestor22 wrote: With this company, it isn't what they say, it's what they don't say. They didn't say they'd be cash flow positive in fiscal Q4 2021, or by year end, or even in fiscal Q1 of 2022. They said they'd be cf +ve in fiscal Q3 2021, which they can do by collecting outstanding A/R. They have a whack of receivables for which they gave extended payment terms, much of which
could come due in fiscal Q3 2021. Combine that with some SaaS sales and some device sales and, voila, they get to be +ve cf in fiscal Q3 2021 only. Then they can go back to being cf -ve for a couple more quarters before turning the corner for real.
Of course, all of the above is highly speculative.
The good news is that, if things come to pass a la Lisa, the cf negativity should decline over the coming quarters and eventually be eliminated.
When it comes to SaaS gross margin, I've still no idea what it will be. It could in part be a reallocation of existing expenses from things like "salaries" to COGS, which would leave overall expenses little affected. I just don't know, but we surely do know that expenses will go up, as per the funding NRs.
lscfa wrote: The math does not work. If co. grows revenue to $1.5 mil/qtr by June that will just cover the $1.5 mil in cash expenses/qtr and the co. surely will not be doing 100% gross margin. And with revenues less than $1.5 mil/qtr at March 31 the co. can not be cash flow positive.