RE:Yup 7 cents@swyint, a few observations:
- $5M cash on hand. 3 million draw down in cash, from the $8M reported end-Q4. Of this $3M, 1.2M was for share buyback (NCIB), meaning $1.8M was used for other expenses;
- DND $40M contract Milestone 2. Income should appear in Q2 financials. Given that Milestone 1, which lasted roughly 3 months, brought in $2.3 M (Source: https://stockhouse.com/news/press-releases/2022/02/10/nexalogy-selected-to-proceed-to-the-next-phase-of-canada-s-department-of), we should expect Milestone 2 income, implemented over 12 months, to be more in the $9-10 M ballpark - meaning that this alone could fund roughly 5 quarters (hence until end-Q2 2024) of DM expenses, during which time Milestone 3 will, likely, have been completed. As such, I'm not concerned, at all, about DM running out of cash within 6 months or needed to go for a PP;
- Health Division. No one needed a crystal ball to know C-19 income would come to an end - which they did April 3rd 2023. In fact, most were probably surprised these lasted so long! In the meantime Medicall is adding clients slowly but surely and Imagine Health was generating roughly $2M net/year ($5M income of which 40+% profit margin) when purchased last Autumn. As such Q2 2023 onwards should see the Health Division generate more than the reported Q1 2023 $2,189,061 earned, going forward. Let's conservatively round this to $8M for 2023;
As such, at a very minimum, both the income generated by the $40M DND cybersecurity (estm $9M/year) and Health Division (estm $8M/year) can currently, individually, cover all DM expenses - not factoring their growth prospects nor income generated by dmEVS nor other AI contracts.