RE:RE:AS good as can be expectedWell said. They need to show that EBITDA and more importantly cash flow will continue to grow AND they need to manage future shareholder dilution (I believe fear of dilution more than anything else is why the share price is where it is rather than being closer to $0.80+). The company was EBITDA positive last quarter but after that came a hefty interest expense bill and capex spending mostly on intangibles.
As I mentioned in my forecast post, the company is capable of making it throught he year with some dilution but cash will be tight and there will be little room for missing expectations without having a materially consequence to dilution (i.e. funding the shortfall but printing more cheap shares). It is possible that the once again re-negotiate some of the contingent obligations to push them out even further to minimize or reduce that diluation. Doing so should at least in theory allow the company to pay off those contingencies with 100% cash and not have to issue new shares. It would also be great if management could use any excess cash to pay down it's Beedie debt (the second $3M draw at 43 cent conversion especially) BEFORE Scotia (if that's possible) as Beedie is dilutive due to the conversion factor.
The lack of firm guidance (i.e. actual Rev/EBITDA $ targets) isn't going to help new investors get comfortable with the story. On one hand managent is saying they have very predictable ARR and a big pipeline of opportunites, and on the other hand not providing $ target guidance tells investors that management's conviction on the year must be low or that they have poor visibility because otherwise they would be confident to provide $ targets. So those two do not hang and that'll make investors sit on the sidelines (barring a big news release like another material contract win(s)) until they the year goes by ("show me" story).