RE:RE:Karen Hersh Told You Everything You Need to Know @boom @bobby. Xtract will most likely close FY2023 with $17.5m in operating cost, $3.5m in revenue and $5.5m in cash reserves. That's my math and estimate, but welcome others ideas.
There are no more Silicon Valley banks betting on risks like this. They themselves are out of business. Canaccord stepped away on this last round, even with MSGG investment of $13m that is now down to $8.5m as of April 30 and probably $6.5m by June 30. $5.5m by end of FY23 on July 31.
Tge only hope is MSGG buying the whole nut and selling into their own network with a spin-off security division or another Company like Evolv with cash balance of $200m+ as @Bobby shared. Anyone asking about relationship with the firm that owns Climate One Arena in Seattle? Who were they again? They had a security division. Where did they go?
All in all, stock will dip further down in my estimation and a desperate raise attempt 3rd March.
Since Evan's started he's raised (and burned through) $5m from Raytheon offset + $6m from Canaccord + $13m MSGG. That's $24m and has shown what looks like a $6m revenues stream in 2years... let alone a growing book of "supposed" clients to $13m +. Even @bobby has highlighted $55m revenue stream at Evolv, and over $200m in bank after $95m burn.
Just look at that XTRACTS burn is 5x Revenue (est 17.5m burn/$3.5m Rev) . Evolve Burn is 2x ($95m burn/$55m Rev) Good luck to all who think Xtract burn rate will miraculously shift to 2x by 1st half FY24 when they run out of funds.
Again cash on hand $8.5m on April 30. Cash on hand by July 30 estimated at $5.5m