Data Deposit Box Inc DDBXF

Cash Reserves?

[Sundowners]

I have only just become aware of this company and have started off DD by
looking at the latest set of financial staements, which are interim
statements for Sept 30 2017.

There is only cash of about 240K on the balance sheet as at this date which
should be consduered aganst a net cash burn of $128K per the Income
statement (if we are kind and back out the notional depreciation charge of
$106K).

Unless revenue has picked up very substantially in the last quarter (or
unless I a missing something)  this would mean they will run out of cash in
another quarter nd will need anothe round of dilutive financing shortly...

Also they were in breach of their debt covenants at the time of these financials...

[JimmyB73]

The company has received over $1.2M in proceeds from the exercise of warrants. Some of the proceeds were used to eliminate all outstanding debt and remove the GSA in place from our senior lender. Said Tim Jewell, CEO of Data Deposit Box: “Our team has done a great job enhancing our core products and bringing new products to market. Being debt free with a strong cash balance and cash flow positive

[ScarletSpider]

the company will need way more than that to keep operations going and advancing product. One of three things will happen--a contract, a bought deal, a private placement but then again even if companies get contracts it will depend on the size as well as receipt of payment so that too while being quite helpful will not necessarily stave off the need for more capital. My preference is definitely

[Sundowners]

Whilst it is nice to be debt free, and depending how much of these proceeds have been used to pay down debt, the reality at the current rate of cash burn they can maybe go 6 months before new financing will be needed, as I see it.  The company appears to be significantly undercapitized...

[MrCanadian]

I would imagine they have been spending ample cash on their recent patents, hence the recently low numbers. Now it appears they have successfully executed their plan, although it has reduced cash, they have executed a major part of their plan without being in debt. Now I can only imagine cash and rev will increase now that the focus shifts from investing in patents to obtaining contracts or

[ScarletSpider]

I tend to agree. They will need some sort of infusion within 6 months. Wouldn't make sense to get close to being zero and then running around for monies and that is the strong reason i believe we will have some huge news...contract(s) and most likely a bought deal. I had said that i see a bought deal coming over here (at least as to my recollection) because 1.2 million is nowhere any sizable

[Zorbing]

I go back to this very important fact again... they just paid of the o/s debt... of course they will need more cash at some point but IMO they did the right thing paid off the debt and to me that speaks volumes and thats more than i can say about most other JRs in a similar situation. Payong of the debt helps create more trust in the foundation of this company and gives us much more time and

[ScarletSpider]

I don't see anything above a quarter at this point unfortuantely. But i do agree it was very important to pay off the debt as it shows strong responsibility and a company that is now financially stable and someone to have confidence being a part of. Regardless of what happens the company is in a fairly good position not great but good and solid and that works for me. In time it will just keep